Handling Check Donations with Non-Sufficient Funds (NSF)


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.


Was this article helpful?
6 out of 7 found this helpful