BP 11122023 129pm - Flipbook - Page 48
2. The community hardship collection for those that are struggling in the local community.
The parish receives donations from the community at large and other local churches, not
just parishioners, which are given to anyone in need for groceries, gas, hotel, rent,
utilities, medical/funeral assistance, etc. and is appropriately accounted for in the liability
account.
3. Many schools provide an out of uniform fundraiser for disaster relief, prolife, angel tree
donations, etc. which are also accounted for in a liability account.
Promotion of these fundraisers should clearly detail if net proceeds (all funds collected less the
related event expenses) or all proceeds (includes all funds collected as the parish/school is
responsible for the event expenses) will be given and who the beneficiary will be.
Accounting: We recommend using a different exchange for each collection if they are recurring
for better transparency and tracking. If the collection is a one-time event, project code usage in a
general exchange account is recommended. Both options allow for easy tracking and
transparency as this will assist to ensure funds collected are being remitted timely. The
accounting for these transactions is as follows and is created in the normal course of recording a
deposit or check payment:
Example: Pregnancy Aid Collection:
When funds for pregnancy aid are donated and included in the weekly deposit the following
occurs when the deposit is made:
Debit/increase Operating checking account
50
Credit/increase Liability exchange (pregnancy aid project code)
50
When the funds collected are remitted to pregnancy aid via check the following occurs when the
payment is made:
Debit/decrease Liability exchange account (project code if applicable)
50
Credit/decrease Operating checking account
50
OR
If funds were raised and expenses for fundraising will be netted before remitted the following
will occur during check payment and remittance of funds to Pregnancy Aid Clinic:
When expenses for fundraising are paid via check:
Debit/decrease Liability exchange account (project code if applicable)
10
Credit/decrease Operating checking account
10
Net proceeds are remitted to Habitat via check the following occurs when the payment is made:
Debit/decrease Liability exchange account (project code if applicable)
40
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