General tools just won't cut it- You need true fund accounting
Aplos is specifically built to serve the unique financial needs and dynamics of nonprofit groups and faith-based organizations. You can confidently manage your books, financial health, and bottom line the right way, the first time and every time.
Perfect for both large and small organizations
Advanced accounting tools and beautiful reports for organizations that need them
World-class fund and donor accounting features specific to the needs of nonprofits and churches
Aplos is a robust accounting system that allows you to keep track of your grants, programs, and fundraising so you can give your board clarity on your finances.
Benevolence is defined quite simply as an act of kindness or generosity. Church benevolence programs provide folks in need with the basic necessities of life. The most common benevolence requests from church members and non-church members include:
Utilities
Rent
Lodging
Food
Medical Expenses
Transportation
Funerals
What about giving cash?
A common church benevolence fund guideline is that the fund can be used to give cash to a needy person, but as with all other benevolent gifts, the purpose of the cash must be to help provide for the basic necessities of life. As an example, a church could provide a cash gift to a family who recently suffered the loss of their house due to a tornado or other natural disaster. The family could then utilize the funds for groceries, clothing, and other necessities.
In other cases where larger sums of benevolent payments are being made in the form of rent or utility bills, many churches wonder if they should be recording the payments they’re making to those individuals on a 1099.
The answer is no. Benevolence payments made to individuals are not taxable income. Not only do they NOT need to track it, they also do not need to ask them for a W-9—which means churches don’t have to report it on a 1099.
Does your church have a benevolence fund?
Did you know you can track benevolence funds in the Aplos Software Suite? That’s right, Aplos can help you set it up, track its activity, and eve n help you transfer various amounts in and out of it!
Be sure to give Aplos a try today, if you haven’t already. Our bookkeeping services team is waiting to help you with any issue you may have, including navigating church benevolence funds and their guidelines.
If you’d like to read more on the topic of church benevolence, check out this a rticle from our friends at Foundation Group.
Sign up for this free webinar to learn some of the critical factors that make a church financially healthy. We discuss how to be good stewards of your church’s resources and explore some best practices for overseeing your finances. This webinar will teach you how to:
Create and implement a stewardship plan
Demonstrate accountability for managing your funds
Leverage reports so you can make strong financial choices for your church
Review and monitor giving trends within your congregation and membership
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