Today I got a question from a customer on how to handle a donation, and I realized that I’ve never posted on this subject.
First of all, as far as sales tax is concerned, donations are taxable unless the recipient is a tax-exempt organization.
So a donation to your church is tax-exempt but a donation to your son’s little league coach dinner is probably not.
However, donations you make to tax-exempt organizations are probably income tax deductible for you. So, you should keep track of those donations and give them to your accountant when he or she is preparing your taxes.
So how should you enter a donation into flowerSoft, so that it will be able to report your total donations for a period of time?
The easiest (but not the only) way is to enter a “D” in the source field.
When you enter a “D” in the source field, you telling flowerSoft that you are entering a donation and flowerSoft will respond by showing you this popup…
From there on, you can continue with the order the way you normally would until you get to the “Tax Rate” field.
Now you must tell flowerSoft if the organization you are making the donation to, is tax exempt or not. flowerSoft will always default to “Yes, the order is taxable” so you must enter a tax rate of “E” if it is tax exempt.
flowerSoft will then make the method of payment “DONATION” and take you to the “Ready to Save” field.
Notice that “Payments” field reads zero and so does the “Balance” field.
Now, when your accountant asks you for an amount got donations, you can print one of these 4 reports (3, 4, C or D) or all of them if you want to…
and this or something similar is what you will get…
Questions and comments welcomed…