Patriot Software Advisor

Endowment donation

by W. Bramble
(Baltimore, Md)

We received an endowment from a former member. The check reads endowment. Does this mean the church cannot touch the principal of the donation and can only benefit from whatever interest it generates? Or can the full amount be used at the discretion of the church?

Comments for Endowment donation

Click here to add your own comments

Jan 12, 2020
Recording and dispersing cash gifts
by: Paul Sykes

We are using Quickbooks desktop pro. We have established budgets for all church departments. Let me provide a hypothetical case to explain our problem. Say our Youth department has a $1,000 approved budget. Then a church member donates a $1,000 gift to the Youth program. We set up a sub bank account under our church general fund to track the balance of the gift. We write a check for $400. The sub-account now has a balance of $600. However,their budget also gets hit for $400 as soon as a check is written. There must be some way to track these gift sub-account without affecting their budgetsPlease help.

Paul Sykes

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Church Accounting FAQs.

Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!