BP 11122023 129pm - Flipbook - Page 51
When the proceeds are used to purchase the play tickets or reimburse an individual for their
purchase via check are less than those collected, the following occurs when the payment is made
and the excess $25 remains in the women’s group exchange for future use:
Debit/decrease Women’s Group exchange account
225
Credit/decrease Operating checking account
225
OR
If the tickets are more than the proceeds and the women’s group had a starting balance of 100,
the following occurs when the tickets are purchased/ reimbursed to the organizer:
Debit/decrease Women’s Group exchange account
350 ($250 + $100)
Debit/increase ministry retreat expense
150
Credit/decrease Operating checking account
500
Ministry Fundraising and Collections for parish/pastor use
Ministry fundraising: In addition to raising funds for their own activities, ministry groups will
also fundraise or donate to cover a parish expense. Examples of these include bake sales, food
sales, craft fairs, fish fry, pancake breakfast, etc. that are used to contribute or pay for a parish
expense. Examples of items purchased with ministry donated funds include a playground, a
piano, new parish kitchen, a bench for the memorial garden, retreat fees, etc. While the
fundraising or ministry account can start in an exchange account for tracking revenue and
expense, the net proceeds or donation to cover the parish cost should be removed from the
exchange and recorded as donation income. The parish expense covered by the donation should
be recorded as an expense or asset depending on the purchase.
Some communities do not generally tithe in the traditional way of donating money through
offertory. However, they contribute greatly via fundraising efforts or other time and talent
donations. As a result, net proceeds from food sales, raffles, Our Lady of Guadalupe
celebrations, soccer tournaments, etc... All represent donations to the parish and thus should
eventually be included in parish revenue.
Fundraising accounting is as follows:
When food sale ticket payments are included in the weekly deposit the following is recorded:
Debit/increase Operating checking account
1,500
Credit/increase Liability food sale exchange account
1,500
When the food is purchased or reimbursed to an individual for the food expenses. The check is
made out to the individual submitting receipts or directly to the vendor:
Debit/decrease Liability food sale exchange account
500
Credit/decrease Operating checking account
500
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