Gifts-in-Kind

Gift-in-Kind

A Gift-in-Kind is a donation of goods or services. It is anything that it not cash. These types of donations can be entered in TouchPoint in a Contribution Bundle and will display in a special section on a person’s contribution statement. Your church should decide its policy about which Gifts-in-Kind you want to record in TouchPoint. Some churches may prefer to track in TouchPoint only those donations that will be converted into cash, such as gifts of stock or other items that will be sold and the cash deposited into a specific fund.

Two Types of Gifts-in-Kind

In addition to the Gift-In-Kind Contribution Type, TouchPoint also has a Contribution Type of Stock, which is also displayed in the Gift-in-Kind section of the statement. When you use the Stock type, you can enter a dollar amount and put the number of shares in the Description / Notes. However, the amount does not display on the donor’s statement, but can be used to offset a pledge.

You can use Gift-in-Kind type to record gifts such as a car that the church might keep and later give away, or services rendered for which the church did not pay.

You can use Stock type to record a gift of stock after you sell it. This allows you to record the dollar amount as well as the description of the shares of stock when you have the check to deposit in the bank.

One Way to Record Stock

You can record the stock gift as a Gift-In-Kind type when you receive it. This type will not allow you to enter a dollar amount. This will display on the person’s giving record in the Gift-in-Kind section along with the description of the number of shares.

After you sell the stock, you can then record that on the donor’s giving record in a Bundle, selecting the Contribution Type of NT (Non-Tax-Deductible) instead of Stock. You can put ‘for sale of stock’ in the Description / Notes. This dollar amount will be applied to any Pledge the donor has made for that same fund

If your church does not display Non-Tax-Deductible items on the giving statement, the gift will display only once, as a Gift-in-Kind. However, you will have the record of the sale of the stock associated with the donor because you recorded it as a Non-Tax-Deductible gift. If you do display Non-Tax-Deductible gifts, the stock will display in the Gift-in-Kind section as well as in the Non-Tax-Deductible section.

Another Way to Record Stock

Wait until you sell the stock to record it in TouchPoint. Then record it as a Contribution Type of Stock, entering the dollar amount and the description of the number of shares and type of stock.

The dollar amount will be applied to any Pledge the donor has made for that same fund. However, the dollar amount will not display on the statement.

Tip

Churches control (with a special setting), whether or not Non-Tax-Deductible gifts print on their contribution statements.

Record Gifts-in-Kind

Here is an example of the Gift-in-Kind section of a giving statement with stock gifts recorded the 2 different ways.

http://i.bvcms.com/2016-05-23_09-38-41.png

Here is what those gifts look like on the person’s record in the database. The Gift-in-Kind has no dollar amount, but the Stock gift does, but it does not display on the statement.

http://i.bvcms.com/2016-05-23_09-39-15.png

Tip

If churches receive a number of donor-directed or foundational gifts, they probably record these as non-tax-deductible gifts and want those Non-Tax-Deductible gifts to print on contribution statements. Therefore, they may prefer recording stock donations as a Stock type, instead of a Gift-in-Kind type, so that the donation will only appear one time on the statement, (in the Gift-in-Kind section), but will apply toward a pledge.

Churches that do not print Non-Tax-Deductible gifts on their contribution statements may prefer to record stock as both a Gift-in-Kind type (which will print on the statement, but does not have a dollar amount), and as a Non-Tax-Deductible gift in order for the dollar amount to apply toward a pledge. Because these churches do not print Non-Tax-Deductible gifts on statements, the gift will appear only once on the statement.

Create a Gift-in-Kind Bundle

Step 1

Create a new bundle

  • Select the Contribution Date, which will be the date the Gift-in-Kind was given, not the date you sold the stock/item.
  • Select Gift-in-Kind as the Bundle Type Do NOT enter a Deposit Date or any dollar amount for Cash, Checks, or Coin.
  • Select the Default Fund.

Note

Even if the Gift-in-Kind will not be sold for cash, you must select a fund for each Gift-in-Kind.

  • Click Update.
Step 2

Enter the Gift-in-Kind Details

  • Click Post Bundle/Edit on the Bundle Header.
  • Verify that the Contribution Type is Gift-in-Kind. This will put the contribution code GK on the line item with the details and will set the requirements for Gifts-in-Kind.
  • Enter the People ID # or name of the Donor as usual.
  • Do not enter a dollar amount.
  • Verify that the Fund is correct.
  • Enter the description of the gift in the Notes section. Do NOT include a value in the description. This is what will display on the person’s Contribution Statement. Examples: 1976 VW Beetle; 25 shares IBM stock
  • Click Update and then close the Bundle as you would a normal Bundle.

Below is a sample of how the Gift-in-Kind section appears on a donor’s Contribution Statement. Notice that it is above the Period Summary and contains the Contribution Date, the Fund and the Description (from the Notes section in Post Bundle Edit).

http://files.bvcms.com/hope.1301061723.GiftInKindStmt.png

Create a Stock Type of Bundle

This type of entry must be made after the stock is sold in order for you to have the correct dollar amount.

Step 1

Create a new bundle.

  • Select the Contribution Date, which will be the date the stock was given, not the date you sold the stock.
  • Select Stock as the Bundle Type Enter a Deposit Date or the dollar amount (in the Check field) you received for the sale of the stock.
  • Select the Default Fund.
  • Click Update.
Step 2

Enter the Stock Details

  • Click Post Bundle/Edit on the Bundle Header.
  • Verify that the Contribution Type is Stock. This will put the contribution code SK on the line item with the details and will set the requirements for stock gifts.
  • Enter the People ID # or name of the Donor as usual.
  • Do not enter a dollar amount.
  • Verify that the Fund is correct.
  • Enter the dollar amount you received for the sale of the stock.
  • Enter a description of the gift in the Notes section. Example: sale of 25 shares FedEx stock.
  • Click Update and then close the Bundle as you would a normal Bundle.

See also

Non-Tax-Deductible Contributions for instructions in recording a Non-Tax-Deductible donation.

© 2017 TouchPoint Software, LLC.  All rights reserved.