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Year-end donations

On occasion, there are donations and batches that cross over the end of the fiscal tax year. This must be handled carefully in accordance with Church policy, as well as any applicable tax laws.

Policy

For a donation to be counted for the current year, it must be in the hands of a member of the bishopric, or if mailed, have a postmark date on or before December 31. Otherwise, the donation should be entered in a batch on or after January 1 and will count as a donation for the new year.

Donations

Donations that were properly physically received or postmarked on or before December 31 should be added to a new donation batch dated in the previous year. To do this in January:

  1. Make sure that you have closed out the previous financial year. Do not delay closing the financial year, nor attempt to adjust the system date to the previous year.
  2. Create a new donation batch, specifically for all such donations from the previous year.
  3. Date the new donation batch December 31 of the previous year.
  4. Enter the donations as usual.
  5. File the donation batch documents with the previous year's financial records.
  6. Make sure that you retain any envelopes with previous year postmarks and file them with the batch documentation.

Corrections

Donations in the wrong year

If a unit makes a deposit to a batch on or after January 1 that should have been counted in the previous year, they can make the adjustment from the new year by deleting it out of the batch and then adding it to a new donation batch dated on or before December 31 of the previous year, as described above. The clerk must indicate that the funds were received or postmarked on or before December 31 of the previous year. File the documentation as indicated above.

Returned checks

If a donor check is returned for insufficient funds, and the member replaces it on or before December 31 or it is postmarked in the previous year, the unit can create a separate batch dated in the prior year and make a separate deposit. The clerk will cancel the original donation.

If a check was returned due to a bank error and the member was unable to replace the check by December 31, have the donor call the bank and ask for a letter stating that the check was returned due to an error in banking. If the documentation is provided, the clerk can cancel the original donation and make a separate deposit dated in the prior year as described above.

If the bank does not take responsibility for the error, and the donor did not replace the donation before the end of the year, it becomes a donation for the new year.

Adjusting the batches

  1. Delete the donation from the incorrect batch. For units using CUBS, this can only be done by contacting the administration office.
  2. Add the donation to a new batch dated in the previous year. The clerk must include an explanation that the funds were received on or before December 31 or if mailed, postmarked in the previous year.
This page was last modified on 19 December 2011, at 11:12.

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