As David mentioned in an earlier post, one of our most recently added features for the new year is the ability to flag an individual contribution as non-tax deductible, even though the fund itself is a tax deductible type of fund.

The best example of this is a person who donates through a foundation . He receives tax credit from the foundation when he gives the money to the foundation. At the time he directs the foundation to make a donation to go to your church, he should not receive tax credit again. Flagging that contribution as non-tax deductible allows you to record the contribution as coming from that individual without displaying the contribution on his Contribution Statement from the church.

While we already had the ability to designate a specific fund to be a non-tax deductible fund, this new feature gives us the ability to record on a person's record an individual contribution to a regular tax deductible fund (such as a Building Fund or the regular Budget/Tithe fund) even though the person has already received tax credit for the contribution. A key factor is to not display this on the individual's contribution statement.

Read more about Non-Tax Deductible Contributions.

Stay tuned for our next post, which will show you how you can use these types of non-tax deductible gifts and apply them to a Pledge.