Can building proceeds be put into general fund?

During our church's growth, a building fund was established. A building was purchased a few years ago. Following the building purchase, we started in a decline and recently sold the building at a loss. Were the original donor restrictions satisfied with the acquisition of the building? Can the net proceeds from the sale of the building be included in the general fund to cover pastoral and administrative expenses?

Comments for Can building proceeds be put into general fund?

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Jun 05, 2013
building fund
by: Sandi

this issue has been addressed: http://www.freechurchaccounting.com/dissolution-of-a-building-fund.html

you can also read: http://www.nonprofitissues.com/public/features/point/365.html#.Ua9CptLVCSo

I believe the main issue would be how it was originally set up, it is always a good idea to have "excess funds will be transferred to the general account" however if that was not done a congregational meeting and vote may keep moving the funds above board...

if you are unsure contact the IRS:
Specialized information can be accessed through the Exempt Organizations (EO) Web site under the IRS Tax Exempt and Government Entities division via www.irs.gov/eo or by calling EO Customer Account Services toll-free at (877) 829-5500.

Prayers

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