Track nondeductible donations
While most of the donations you track in Giving are tax-deductible, you may have instances where you need to track a nondeductible donation, such as a qualified charitable distribution or a donation from a donor-advised fund. You can track these donations using payment sources in Giving to keep all your records in the same place! Donations assigned to a nondeductible payment source will not count toward a donor's tax-deductible total, and can be optionally excluded from donor statements.
It is important to remember that Giving was designed to track donations only. Transactions such as ticket sales, reimbursements, event payments, and other non-deductible payments should not be tracked in Giving. Giving is not a general ledger; you'll need another software to track income and expenses.
Important
The information in this article is not advice. If you have any questions about a donation's legal or tax implications, always contact a licensed accountant—preferably one who specializes in working with non-profits.
Set up a payment source to track nondeductible donations
To accurately track nondeductible donations, such as those from donor-advised funds or qualified charitable distributions, you'll want to create payment sources. Whenever a nondeductible donation is entered into a batch, it should be assigned to a nondeductible payment source so that the donation is counted properly.
Follow along with the Create and manage payment sources article for full instructions on creating a payment source and assigning them to donations.
Enter nondeductible donations
After you have created payment sources, enter nondeductible donations into batches. When you enter a donation, assign it to the payment source you created for either the donor-advised fund or qualified charitable distribution.
Follow along with the Batches article for full instructions on creating a batch and entering donations.
How donors view nondeductible donations
Once a batch containing nondeductible donations is committed, donors will be able to view the donation in their donation history in Church Center. Donors can choose to filter these donations out by checking the Hide nondeductible donations box, which will remove the nondeductible total from their overall donation total for the set timeframe.
On statements, administrators and bookkeepers can choose whether or not to include nondeductible donations from the Configure step of statement creation. If included, nondeductible donations will be listed at the bottom of a donor's statement in separate sections for donor-advised funds and qualified charitable distributions, and will not be included in their deductible donation totals. You can see a sample statement in the Create and share donor statements article.
Create reports for nondeductible donations
As you receive and track nondeductible donations, you can use reports to keep up with where donations are coming from and pick up on any trends. There are two different ways to view reports for nondeductible donations in Giving.
Create a donation report
If you're looking for a list of all nondeductible donations, you can generate a report from the By donation tab on the Reports tab on the Donations page in Giving.
Select the Donations page from the top navigation in Giving.
Select the Reports tab from the left sidebar.
Select the By donation tab.
Set the needed campus and date range filters.
Select Stamp from the Filter dropdown.
Choose nondeductible from the Select an option dropdown.
Review the list of donations, and select a donation to view more information about it.
(Optional) Select Export to print the report or export a CSV.
Create a donor report
You can create a report of all donors who have given a nondeductible donation from the By donor tab on the Reports tab on the Donations page in Giving.
Select the Donations page from the top navigation in Giving.
Select the Reports tab from the left sidebar.
Select the By donor tab.
Set the needed campus and date range filters.
Select Stamp from the Filter dropdown.
Choose nondeductible from the Select an option dropdown.
(Optional) Check the Only show new donors box to filter the report to only new donors within the set range.
Review the list of donors, including the date of their first donation, the number of donations within the set criteria, and the total amount donated within the set criteria.
(Optional) Select Export to print the report or export a CSV.