BP 11122023 129pm - Flipbook - Page 79
2. In-kind Gifts: provide food and supplies.
3. Gift Cards: Purchasing and distributing a few gift cards occasionally is not a major task,
but if it’s a regular process that includes cards of varying amounts and expirations dates,
and material in total, it can be a burden to track and an increased risk of fraud. If the
pastor approves the use of gift cards, they must be appropriately secured and tracked
from the time of purchase to distribution, and there has to be an accounting for who
received each one (See IRS record keeping requirements). For locations that intend to use
gift cards regularly, the process should be documented and followed. Suggested
guidelines:
• Treat gift cards as cash and keep in a safe and under dual control.
• Develop an organized/systematic method for tracking.
• Develop a segregation of duties for accountability. Consider:
o The pastor should approve the purchase of gift cards.
o Individuals with access to the general ledger should not be responsible for
the gift cards.
o The individual that purchases the gift card should not be the person who is
in charge of distributing them. (This may be hard in a small parish- recruit
volunteers.)
• Submit the receipt for the purchase of the gift cards
• Record the cost of the gift card in general ledger, such as in the ministry exchange
account or department expense account.
• Set a threshold for the maximum amount kept on hand. Replenish when it falls
below this threshold.
• Reconcile the gift card distribution log when necessary, such as when the gift
cards are replenished. For example: Purchased $500 in gift cards. Plan to
replenish when the balance drops to $200. Prior to purchasing $300 in gift cards,
confirm that $300 was distributed (recorded in the log).
• Follow documentation as required by IRS guidelines related to hardship support.
CASH ASSISTANCE: Direct payments to individuals are highly discouraged. Such payments
could create a tax liability for the recipient and would be coded as
