From time to time a contribution will not clear the bank and a contribution has already been entered for it. This article will give options on how to handle contributions that don't clear the contributor's bank.
When a contribution doesn't clear the contributor's bank and a contribution has already been entered and reports are already printed you will need to make an offsetting entry for the contribution as well as a journal entry in your accounting program.
There are at least 2 different options you can choose described below.
- Zero out the contribution and list as anonymous.
- Change the contribution to anonymous and put a note in the notes field about the contributor and the NSF. Then create another anonymous contribution with a negative amount. This will balance out the 2 contributions. This will keep the original contribution batch matching the deposit to the bank. The balancing contribution could be entered into its own batch and have accounting match the entry from your bank.
- This method will keep the contributions from showing on the contributor's contribution statement at the end of the year.
- Zero out the contribution with a negative contribution.
- 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.
- Both the above options will require some Journal Entry work to be done in accounting.
- The same options can be employed for online contributions as well. The notes would be really important in the case of an NSF online contribution.