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 contribution to anonymous and put a note in the notes field. Then create another anonymous contribution with a negative amount. This will balance out the 2 contributions.
Option 2:
Keep the person's name on the original contribution and then record a negative contribution 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 contribution and update the previous month's books, or leave a note.