Church Preschool Question
by Glenda PEarce
I have a question. I was reading the response about preschools within a church. Our church is in the process of doing this. The advice about having a separate account is helpful. However, the question I have is does anyone know if the preschool would need to have a separate Fed ID number or would the church Fed ID number be used in this case.
The other questions I have is that a church member paid for the renovations of the church facility and the church agreed to pay back the expense, due to the church had no funds available to update the church to house the preschool area.
The member has given the church $30,000.00 Would this money and expense be entered in the books as payback of a loan for the expense of renovation or would we process a check upon receipts for reimbursements of the fund as renovation expenses.
I really need help with this issue because I know with a regular business this would be setup cost. Not sure how to handle this entry. Thanks for any assistance.