- 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.
We do not recommend including Non-Tax-Deductible Funds in your list of Online Giving Funds.
Recording Non-Tax-Deductible Gifts¶
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. See article below for entering contributions.
Non-Tax-Deductible Gifts and Pledges¶
You can record a non-tax-deductible gift and have it apply toward the balance of a Pledge.
- 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.
- 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 Batch and will also display on the Transactions Log. Be sure that the fund you use is not flagged as a non-tax-deductible fund.
Removed Donations vs Fees section, added link to new batch article.