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FROM: Jim Bramer, Retired CPA-A-Auditor
RE: Scrip Issues - mostly at a Church UPTD: March 09, 2012
The following Answers are within context of this link and related matters where we cover a variety of SCRIP Store topics. Click here and go to List of FAQs at www.bcidot.org
We have read about Scrip at the following links: 0101 0064 0188 0639 2013 about Scrip Store matters. We have also chosen to allow the BUYER to make some choices as we accumulate Scrip residual balances at our Church .... where we reference it as "FAMILY ACCOUNT BALANCE" ..., but we want to understand exactly how it can be used. Can you help us? To simplify, please refer to it as "Scrip Bal".
This Scrip money is really the Church's money but you have been given the BUYER some choices as to how it is to be used at the Church.
Please start by viewing such matters as if you did not have this "Scrip Bal" for such purposes and you were to write a non-gift check to the Church to pay for something you owed to the Church.
Can you please provide us with a sample list of likely Church functions when we could use this "Scrip Bal" ?.
OK .... the first issue is that you can NOT use any of this Scrip Bal for some other Church or Ministry endeavor. For example, you can NOT use this to pay for the tuition of a family member at some School. Or it can NOT be used to send to another Ministry , or Mission Organization. You can state that this Scrip Bal for specific non-deductible Church Events only at the Church; examples include:
- Youth Events - general costs
- Adult or Youth Choir Trips
- Camps - that are Church sponsored
- Any Church sponsored 'doings.'
- AWANA or a like endeavor
- Vacation Bible School
- Men's Ministry Events
- Women's Ministry Events
- Sunday School Events
- Church Sports activities
Questions # 3
We understand that we can also use this Scrip Bal to make tax-deductible gifts to the Church. Is this right? and if so please provide some more information.
Answer # 3:
The basic issue is --- who is in control of the spending of such funds and are the expenditures exclusively to carry out the tax exempt purpose of the Church. The Board and/or its representatives have expenditure control --- usually evidenced by an authorized expenditure budget of a Church Department. Non personal examples include:
- Church sponsored Projects;
- Church sponsored Mission Trips;
- Church sponsored Missionaries or Projects;
- Church Group operational expenses (like a Sunday School Class Fund) or their Projects;
- Youth Camp Scholarships;
- Building or Facility Improvement Funds;
- Equipment Projects;
- Benevolence Fund -- where the Donor can express a preference, but the Board has the final say as to who is the beneficiary - not the Donor..
Let me know at Jim@bcidot.org. if comments/questions.t
The bulk of this Publication originated in September 2000 and was UPTD: May 09, 2011
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