Church Groups and accounting practices
I just need some straightforward advice. I am a member of a small church. For decades each group (ladies auxiliary,mens club, youth group,stitchers, etc) have had their own bank accounts and handled their own finances, all while using the churches id number on these accounts.
It has come to my attention that while these groups take in contributions and do fundraisers, that the accounting for these funds is never reconciled with the church and never included on church financial statements or reported to the irs.
It seems to me that if individuals who donate to these different missions were to claim a deduction on their personal taxes, but the churches reporting is different that this could lead to serious complications.
I guess my question is this-is the church responsible for reporting this money? It seems to me that regardless of how we operate internally that all financial operation of the church needs to be reconciled at the end of the year.
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