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Donation Deposited to Wrong Account

  • 1.  Donation Deposited to Wrong Account

    Posted 08-19-2021 01:09 PM
    Hello all,

    I have a conundrum with a donation. One of our donor churches sent their normal monthly gift, and somehow it ended up in the inbox of the Church that operates on our university campus. the Church on our campus rents the space from us and there are members who are staff at the university and students who attend there, but organizationally and financially we are completely separate entities; our denomination is the same but otherwise we're separate and distinct.

    The Church deposited the check to their account -- but it was written out to us (the name on the check wasn't even their Church name). I'm not sure how the bank accepted the deposit since it wasn't written out to them (though the address is the same) but now I have a "reimbursement" check from the Church to us in the amount of the donor church's check, with a copy of the check, and an explanation of what happened. Technically, the check was always supposed to go directly to us and then we would issue tax credit for it. Now, I'm not really sure how to record it. I'm inclined to just record the "reimbursement" check as a check from the donor church with extra notes as to what happened. However, I don't want to incorrectly account for the donation. This donor is a church (nonprofit) itself and wouldn't claim anything in their taxes, but we still want to give tax credit where credit is due, legally speaking, and also have the gift history of what was actually given to the university to be accurate, for the purpose of stewarding the donor relationship. It's a bit messy.

    I welcome any advice from the trusted community!

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    Melissa Rufener
    Coordinator of Advancement Services
    Life Pacific University
    mrufener@lifepacific.edu
    http://www.lifepacific.edu
    ------------------------------


  • 2.  RE: Donation Deposited to Wrong Account

    Posted 08-19-2021 01:12 PM
    I believe that with the paper trail you have described, you are okay entering the gift as coming from the original donor - with the Church acting as a quasi-agent.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Donation Deposited to Wrong Account

    Posted 08-19-2021 03:49 PM
    Thank you John! I appreciate the quick feedback!

    ------------------------------
    Melissa Rufener
    Coordinator of Advancement Services
    Life Pacific University
    mrufener@lifepacific.edu
    http://www.lifepacific.edu
    ------------------------------