Setting up GNUcash for an association

[Mike or Penny Novack]

Robert Smits wrote:

>On October 24, 2008 03:08:15 pm effe iets anders wrote:
>  
>
>>Hi all,
>>
>>I set up GNUcash recently on my computer, and I am getting through it bit
>>by bit. I am setting it up for an association that will recieve mainly
>>income through activities, donations and contributions. The donations will
>>come from many different donors. We would like to keep track of recurring
>>donations and contributions, and that way easily find back payments and
>>donations made by a person.
>>
>>How can I set up GNUcash in such a way that I can add some kind of Donor ID
>>to identify the donor?
>>
>>
>>    
>>
>
>I do that by creating accounts for each contributor in income,contributions, 
>name.
>
>This way I can see just what each contributor has given us either through a 
>cash flow report or by looking at the accounts.
>
>Bob.
>  
>
Going to put my two cents in here. I'm the treasurer for more than one 
501c3.

Traditional double entry bookkeeping allows you to group accounts in 
only one way --- by which I mean you can't at the same time have them 
grouped one way and then another. At the same time, the whole purpose of 
bookkeeping records is to be able to readily supply the necessary 
information.

Here there is more than one way "donations" must be grouped. You need to 
be able to keep separate different kinds of donations (membership, 
unrestricted donations, restricted donations possibly of several sorts, 
etc.). At the same time you must be able to produce donor totals, etc. 
for at least the annual acknowledgment letter (different if over $250) 
and you may need to be able to distinguish and provide totals for 
"unqualified" vs "general public" donors.

I would not try to do this in one set of books. GnuCash (the 
application) can certainly be used for the various purposes, but I 
suggest that the "donor accounting" be a set of "donor books" separate 
from the main organizational books. The latter can have the accounts 
organized (grouped) to serve one set of purposes and the donor books 
another. Yes looks like more work, but not necessarily even being done 
by the same person.

Michael


-- 
There is no possibility of social justice on a dead planet except the equality of the grave.