Touchpoint Software Documentation | Non-Tax-Deductible Contributions

Non-Tax-Deductible Contributions

Non-Tax-Deductible Contributions

The best example of a non-tax-deductible donation is a donor-directed gift. The gift is sent from a foundation to a normal giving fund - that is, a fund for which a person would normally receive tax credit. You want to record the gift on the individual’s record in TouchPoint, but not have it display as tax-deductible on his giving statement.

The reason the contribution would be considered non-tax-deductible in this case is because the donor received tax credit from the foundation when he gave the money to the foundation. At the time he designates a gift from that foundation to go to your church, he should not receive tax credit again. Flagging that contribution as non-tax-deductible allows you to record the contribution as coming from that individual without displaying the contribution on his tax-deductible giving record from the church.

By default, TouchPoint only displays tax-deductible gifts on the giving statements. However, if your church chooses to display non-tax-deductible gifts your Admin can add a setting to your database. This will display these types of contributions in a special section of the contribution statement. It clearly states that these contributions are not tax-deductible.

See Giving Statement options for more information about this and other special settings.

Caution

We do not recommend including Non-Tax-Deductible Funds in your list of Online Giving Funds.

Record Non-Tax-Deductible Gift

These are contributions that are going into a normal tax-deductible fund, but that should not display on the individual’s Contribution Statement as being tax-deductible.

Step 1
Create a Bundle, entering the total amount of the donation.
Step 2
Go to Post Bundle / Edit. Find the individual person, enter the dollar amount, and then select Non-Tax-Ded (NT) as the Contribution Type. Enter the name of the foundation in the Notes section.
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Tip

If you are posting both Tax-Deductible and Non-Tax-Deductible donations in the same Bundle, be sure to change the Contribution Type back to Tax-Deductible (CN) for the next contribution.

Non-Tax-Deductible Gifts and Pledges

You can record a non-tax-deductible gift and have it apply toward the balance of a Pledge.

Donations Vs. Fees

Sometimes people think they should record in TouchPoint all money that the church receives, regardless of the purpose. You do that in your General Ledger, but not in TouchPoint. You do not want to put fees (such as t-shirt sales, Wed. night dinner fees, event fees) in Bundles in TouchPoint.

However, online registration fees will be tracked in TouchPoint, but as transactions, not as non-tax-deductible donations.

Here are a few facts to help you keep this straight:

  • All monies collected during normal online registrations are fees, not contributions - not even non-tax-deductible contributions.
  • Online giving donations will display in a Bundle; online registration fees will not.
  • Both registration fees and online giving donations will display in the Transactions Log.
  • Fees from online registrations do not display on a person’s giving record.

See also

Transactions Log

Special Cases

Ask Donation

If you have an online registration for an event and you use the Ask Donation feature, anything given as an extra donation (but not the fee itself) will be considered a contribution and will appear on a person’s giving record. The fee and the extra donation both display in the Transactions Log, but in separate columns.

See also

Fee Settings Tab

Mission Trip Online Registrations

If you use TouchPoint’s online registration for Mission Trips, everything thing paid by the participant as well as any donations from others will be considered contributions and will appear on each person’s giving record. These donations will be placed in an Online Bundle and will also display on the Transactions Log. Be sure that the fund you use is not flagged as a non-tax-deductible fund.

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