2009 donations counted in 2010

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showseason-p40
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2009 donations counted in 2010

Postby showseason-p40 » Thu Dec 31, 2009 8:06 am

The bishop wants to count the final 2009 donations he has received (he forgot to bring them to the church last night for the last night of TS) on Saturday January 2nd. Can they still be credited to 2009?

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Postby jdlessley » Thu Dec 31, 2009 8:36 am

If the bishop received them before the end of the year they can be entered into MLS for the prior year. They will be credited for the 2009 year. See the Receiving a donation dated in the prior year section of the wiki article Prior Year Transactions.
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MorettiDP
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Postby MorettiDP » Thu Dec 31, 2009 9:34 am

The bishop can't add donations of 2009 in 2010 because, in new year's first time login, MLS will request to "end fiscal year". You can't stop this operation.
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aebrown
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Postby aebrown » Thu Dec 31, 2009 9:45 am

MorettiDP wrote:The bishop can't add donations of 2009 in 2010 because, in new year's first time login, MLS will request to "end fiscal year". You can't stop this operation.


You're right that when you first login in 2010 that you will be prompted to close out the fiscal year, and you can't stop that operation.

But even in 2010, it is possible to create a donation batch dated 31 December 2009. You have to comply with the appropriate tax laws (in the US, that means that the donations were received by midnight December 31, or mailed with a 2009 postmark to the bishop), but it can still be done.

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Postby crislapi » Mon Jan 04, 2010 10:46 am

MorettiDP wrote:The bishop can't add donations of 2009 in 2010 because, in new year's first time login, MLS will request to "end fiscal year". You can't stop this operation.


Just seconding Alan_Brown's response. You can backdate a donation batch. In fact, as he mentioned, we are supposed to create a batch dated 12-31-2009 for all 2009 donations delivered to the bishopric after the last Sunday batch in 2009 has been completed (hand delivered before 2009 ended or postmarked in 2009).

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Postby rexgj » Tue Jan 05, 2010 12:01 pm

Supposedly the bishop was finished with tithing settlement, but while I was out of town, (last week of December), he scheduled one more day. Several members made their entire 2009 tithing donation on that day. However, these were all entered in as donations on January 3rd. I know this is going to be an issue with those members. Can I correct that transaction, and move them to 2009? We're talking very large donations. What are my options?

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Postby crislapi » Tue Jan 05, 2010 12:16 pm

rexgj wrote:Supposedly the bishop was finished with tithing settlement, but while I was out of town, (last week of December), he scheduled one more day. Several members made their entire 2009 tithing donation on that day. However, these were all entered in as donations on January 3rd. I know this is going to be an issue with those members. Can I correct that transaction, and move them to 2009? We're talking very large donations. What are my options?


Those donations, if received by the bishop in 2009, should have been put into a separate batch dated 12/31/2009 (or earlier) and not combined with the donations received in 2010. I'm guessing, however, all were combined into one donation batch last Sunday.

To fix this, I would suggest you first contact clerk support to see/verify how to proceed. It will probably consist of 1) deleting from last Sunday's batch those donations that were received in 2009. 2) Then creating a batch dated 12/31/2009 and add those donations to that batch. 3) Letting them know when this is completed so that you don't get in trouble for not making a drop at the bank. They will have to split the amount of last Sunday's deposit between the two dates.

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Postby rexgj » Tue Jan 05, 2010 12:24 pm

Am I correct in assuming this (a donation credited to the wrong year) is only an issue if a member gets audited? and if he does get audited, can't we produce his donation slip (dated Dec 2009), and he has his check (dated Dec 2009)? Or is this not the case?

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Postby crislapi » Tue Jan 05, 2010 12:33 pm

rexgj wrote:Am I correct in assuming this (a donation credited to the wrong year) is only an issue if a member gets audited? and if he does get audited, can't we produce his donation slip (dated Dec 2009), and he has his check (dated Dec 2009)? Or is this not the case?


Sure, it's always only an issue if they get audited. However, the only form the IRS will accept is the Tax Statement printed from MLS (on Church letterhead) and signed by the Bishop. The only way a donation is included on the statement is if it is recorded in MLS in a batch dated in the corresponding year.

If a member itemizes deductions and claims their donations as charitable contributions, then the tax statement is supposed to be submitted along w/ the paperwork and W2s. If the amount on the tax statement does not match the amount claimed in the tax return, they will either decrease the claimed amount, ask for a new form, or audit.

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Postby russellhltn » Tue Jan 05, 2010 12:41 pm

rexgj wrote:Am I correct in assuming this (a donation credited to the wrong year) is only an issue if a member gets audited?


I would discourage that line of reasoning. If the member gets audited and it's found the church improperly handled the donation, it's going to be a big mess for the church.

You'd also be opening the door for the member to make a mistake in their donation for 2010 - or worse, misstate their donations to the IRS.

This simply can't go anywhere good.
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