How does NTS calculate income?
What is "Income"?
What is the definition of "Income"?


Income for the Allocation and Annual Report is based on criteria specified by the General Church. To see what is considered income by the General Church, please review the Funding the Mission - Definition of Income document provided by the General Church. As a general rule, all tax deductible contributions received by the church are considered income for Allocations. Money received by the church that is not tax deductible is not considered income for Allocations or the Annual Report.

NTS uses Contribution/Donation entries to calculate income for the Allocation and Annual Reports. NTS does NOT use DEPOSITS or other Checkbook transactions to calculate income for the Annual and Allocation reports.

All contributions/donations that are posted to a FUND classified as "tax deductible" are added to determine the Gross/Total Church Income. Contributions that have been designated as "Income Exempt" will not be included in this amount. The Annual and Allocation reports will show $0.00 income if nothing is posted in Contributions. If you do not use the contributions section of the software, you can post total income in Contributions as opposed to posting individual contributions.

It is not necessary to post rent, reimbursements, insurance proceeds, in/out money or other "non-income" into the Contributions side of the program. However, you may do so if that is your preference. Mare sure to post these type of proceeds to "Non Tax-Deductible" FUNDS or mark them as "Income Exempt". Click here for information about setting up the FUNDS list.

On the Allocation Report, the total of all tax deductible money, including Faith Promise, 10% mission specials, etc, is reported as the Gross Income at the top of the report. To see all the funds included in the Gross Income, click the down arrow button next to the gross income. The Annual Report will show the same income total.

The Net Income on the Allocation report is the Gross Income minus the amount paid for Mission Specials and the Amount Due or Amount Paid for World Evangelism Fund (WEF), which ever is greater.

Net Income = Gross Income - Mission Specials - Amount Due or Amount Paid for WEF