Re: [SL] Setting up a non-profit

[Wallace R. C. <wrc...@gm...>]

On 11/28/07, Paul Tammes <pt...@wa...> wrote:
> Donations are GIFTS.
> Iirc a gift is defined as something given with NO rights to or expectation
> of any kind.
>
> Sure , if people are giving you money it might be handy to have them in a
> CRM (customer relation management) to send christmas greetings and or beg
> letters. But that has nothing to do with  donations or accounting.
>
> Unless you plan to keep up a frequent donations scheme, there is no need to
> enter all personal data of people donating anything. Just the journal entry
> BANK debit, donations incoming credit.
> There is NO sale, so no sales account. There IS income (incoming donations)
> so it is strictly an income account.
>
> For tax deductions their own bankstatement should be sufficient, and you may
> want to note the adresses, but not in the financial data I suggest. (Privacy
> Laws in Europe are a lot tighter, we MAY not enter that kind of data even if
> we like without the written consent of the person being registered. But then
> we always were a silly bunch to begin with ;-)

Paul,

This is for a church, so yes, the donations are pretty frequent &
regular.  We need to track them by person, because we can then provide
a statement for each person at the end of the year, thus allowing them
to deduct their donations on their income taxes.  This is SOP here in
the USA.
-- 
Best Regards,
Wallace