QCD and other Nondeductible Offerings

There are some cases where offerings given by a donor need to be reported differently due to their tax-deduction status.

To distinguish QCD, IRA, and other nondeductible offerings separately from regular, deductible offerings, users will need to attribute offerings to a fund specifically marked to be nondeductible. Nondeductible offerings can then be added into the same batch as deductible offerings with specific designations in their memos so that they appear accurately on giver statements.

To enter in a nondeductible offerings,

1. Go into Offerings from the Navigation bar.
2. On the Offerings view, click the “New Batch” button at the top of the page.
3. Select the date (and event, if applicable) for the batch and click "Add". 
4. On the entry line, record the giver’s name (or envelope number), payment type, check number (if applicable), fund, amount, and memo. Press the Enter or Return key to save the row and update the batch's total. Once an offering is saved, it is recorded to the giver's record and the Offerings view. 
   • Offerings that are nondeductible will need to be attributed to a fund that is marked to be nondeductible but still included on statements.
   • If an offering is nondeductible and needs to be explicitly specified, like a QCD donation, enter that distinction into the memo if it's not stated in the Fund name.
   • If in doubt, it's recommended to document any nondeductible offering that might need to be specified for tax purposes as explicitly as possible with the line item's description.
5. Repeat this for any other offering in the batch.

If a nondeductible fund needs to be created, it can be done from the Funds view under Settings.

To create a nondeductible fund,

1. Go into Settings and choose the Funds view under Offerings.
2. Click to "Add Fund" at the top of the Funds view.
3. Add in the fund name, number (if appropriate), and check the box for "Nondeductible".
4. Click "Save" to save those settings.

With all contribution statements, it's recommended to include a message on the statement stating that no goods or services were provided in return for a giver's contributions and that the only benefit received was an intangible religious benefit.

In addition to these, donors may require an itemized list for their QCD donations to aid them in reporting their contributions accurately for the tax year.

A default IRS message and itemization of offerings are available on statements by default but can be edited under the Customize tab.

It is recommended to review your chosen contribution statement settings with a tax professional to ensure all designations and acknowledgments are included for donors.