Handling Check Donations with Non-Sufficient Funds (NSF)

When faced with NSF check donations, it's crucial to navigate them effectively. Explore three practical solutions to address NSF donations seamlessly. From anonymizing transactions to balancing records and adjusting dates, find the best approach for your church's financial management. Ensure clarity and accuracy in your donation records with these helpful strategies.

Overview:

At times, you may receive check donations that come back with Non-Sufficient Funds (NSF).  There are several ways to handle these situations. 

Here are several helpful options for consideration:

Option 1: 
Change the giving transaction to anonymous and put a note in the notes field. Then create another anonymous giving transaction with a negative amount. This will balance out the two giving transactions.

Option 2: 
Keep the person's name on the original giving transaction and then record a negative giving transaction for all the same information so it will balance the two records to 0. This will show on their end-of-year tax statement if you use the Itemized Listing option vs. the Funds Summary option.

Option 3:
Alter the date of the giving transaction and update the previous month's books, or leave a note.

 

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