Count, Track and Report Donations
Congregations receive a significant majority of their income through donations from members and other constituents. It is essential that all these funds get deposited, credited to the donors who gave them, and ultimately reported on statements that donors can use for filing their taxes. Internal controls (described in the next section) ensure this happens in a consistent way that assures donors that their funds are being handled responsibly and are making a difference to the congregation’s mission.
Complexities around types of gifts, their value, the tax year they are received, and if the donor receives any benefit have varying tax implications. Congregations need to be knowledgeable about these laws and handle them as directed by the Internal Revenue Service.
Online giving (described in the Stewardship module) can make the process of collecting and reporting donations easier. As more people automate their giving (including the fund designation), there is less need to manually process donations.
