QuickBooks has multiple versions of accounting software. They don’t have any software that is specifically named “Church accounting software.” They do however have a QuickBooks Nonprofit Edition. This edition is very popular among churches and non-profits. According to several surveys from The CPA Technology Advisor about 70 percent of non-profits use QuickBooks. At least one CPA I have communicated with thinks that this number is closer to 90 percent for churches. In other words, a majority of churches are using this software for accounting purposes. The premium nonprofit version (as opposed to the normal version) would probably be the best to use for your church’s accounting system, although some churches get away with using normal QuickBooks, known as QuickBooks Pro.

Advantages of Your Church Using QuickBooks

The number one advantage of using QuickBooks NonProfit for your church’s accounting is its ease of use. Many people, even those without much of an accounting background, are able to use QuickBooks effectively. A learning curve does exist, but it isn’t as large a curve as trying to learn a specialized church accounting software system.

Another advantage of using QuickBooks is its customer support. When we mention customer support, we are not necessarily talking about the people at Intuit who designed the software (although they are excellent). Chances are you know someone who is already quite familiar with QuickBooks. Imploring them to help you set up and run QuickBooks as your church accounting software might be the best route for your church.

One final advantage that should be mentioned is the QuickBooks Online Payroll option. This service is well worth the cost for most churches. Let’s face it, most church staff don’t really have a clue how payroll works or how time consuming it can be. If you use this online service, QuickBooks will do the hard work for you (direct deposit, W2 calculations, tax help, and customer support for the questions that you’re bound to have). Intuit Online Payroll Easy to Setup and Use. Try Now FREE for 30 Days. QuickBooks has standard payroll software if you’re interested in that as well.

Disadvantages of QuickBooks

**Update** It appears that Intuit has fixed the audit trail problem mentioned below and it is no longer a disadvantage for nonprofits. Several users have even claimed QuickBooks audit trail is among the best: see comment section for further discussion. ***

In the past QuickBooks didn’t leave much of an audit trail in some situations. If an error was made by your church accountant, then he/she could easily reverse the error without leaving any evidence. This is no longer a problem. Errors can be corrected easily, but the software does a great job of leaving an audit trail documenting what actually occurred.

You may be thinking that being able to easily correct errors is something you want in your church accounting system. The downside of this is that it can be easily manipulated. Most church accounting software requires an adjusting entry when an error is made. This leaves what is called an audit trail so that a church auditor, loan officer, or banker can look back and see any adjustments made throughout the year.

A skilled church accountant could easily cook your church accounting books if proper internal controls are not in place. QuickBooks now has these controls in place and is now very safe to use as church accounting software.

One disadvantage of using QuickBooks Professional instead of QuickBooks Non-Profit is that it was originally designed for businesses, not churches. Intuit’s non-profit software will make it easy to support your church’s reporting requirements, but QuickBooks Pro may not support your church’s reporting requirements or terminology. This is especially true if they are not similar to a normal business’s reporting requirements and terminology.

In Review:

• QuickBooks can be used for your church’s accounting (some estimate that 90% of churches are using this software)
• Advantages include ease of use and great customer support ( a lot of people know how to use this software)
• Disadvantages include the fact that this software was originally designed for businesses. This was a larger problem when Intuit didn’t have a special version for not-for-profits.

Recently, I was very fortunate to come into contact with the great people over at Shelby Systems. Shelby has been a major player in the church management and accounting software field for a long time now (since 1976). They were gracious enough to let me interview them today.

Questions for Shelby Systems

Nate: What separates Shelby Systems’ church management software from the other church software packages out there?

Shelby Systems: The first thing that comes to mind is experience. As the first church management software (ChMS) company in existence, we have both longevity and stability that make us stand out. Our customers appreciate knowing that we’ve been partnering with them in ministry for 35+ years and will continue to do so throughout the future as they grow. Speaking of growth, our software products are scalable to match your ministry as you continue to add members. We serve churches currently from < 300 in average weekend attendance up to 32,000 plus, as well as large nonprofits like The Salvation Army. Another feature that stands out is the built-in reporting capability. You can run a canned report with a click, customize your own using Shelby Query or Microsoft Reporting Services, or export any Shelby fields to Excel for additional customized reporting. Our customer service is well-known for handling any issues quickly and efficiently through a number of different channels. Our Community sites are available for collaborating and networking with peers through forums, or connecting directly with Shelby reps. Lastly, having ongoing releases via the web is priceless – no waiting for an annual or bi-annual release. As tax laws and tables change, you are ensured that your records are always compliant.

Nate: Would you be willing to send me a screenshot of what you consider to be one of the most useful features of Shelby Software? Why is this feature so useful?

Shelby Systems: Absolutely. Below, you’ll see a screenshot of a Budgeted Financial Statement. I chose this feature because of the simplicity that it provides with budgeting management. This is a detailed snapshot of your budget that you can run real-time for any number of periods (or annually). The data can also be exported to Excel for additional customized reporting. It’s your data and it’s immediately available in your preferred format so that you can create reports to meet your ministry’s needs. You can choose any number of columns of data to include, making it a key tool for church leadership.

Nate: It looks like you offer two different products for church management purposes: Shelby Arena and Shelby Church. Can you explain some of the major differences between these two packages?

Shelby Systems: Both Shelby Arena and Shelby Church are people (“non-financial”) management products and both integrate directly with Shelby Financials. However, there are some fundamental differences between Shelby Arena and Shelby Church, including technology, implementation and feature sets. On the technology side, Shelby Church is written in Visual Basic and Shelby Arena is written using the .NET platform. As it relates to implementation, Shelby Church is our legacy, client/server product and Shelby Arena is browser-based and available for you to host on your servers or as a SaaS model, with Shelby hosting your data for you. Concerning feature strengths, both products are full ChMS packages for people management, and with Shelby Arena, you also have a powerful Content Management System (CMS) to publish and power your ministry’s website. Shelby Church has online tools such as online giving & registration that you can publish to your website, but not a full CMS.

Nate: Under what circumstances should my church choose Shelby Arena? Under what circumstances should my church choose Shelby Church?

Shelby Systems: The key to choosing the Shelby software that’s right for your ministry is to take a full look at what you need with features, technology and your staff’s needs. Traditionally, Shelby Arena was used by large & mega churches as an enterprise-level product, but with the launch of Arena in the cloud, it’s now a viable option for any-sized congregation for people management.

Nate: Shelby Systems also offers Shelby HQ for headquarters management. Is this software only necessary for large multi-site churches?

Shelby Systems: No, actually multi-site and multi-tenant capabilities are available through any of our software products. Shelby HQ offers the same features that are built into our other products designed specifically for denominational headquarters offices, regional offices, and faith-based nonprofits.

Nate: It looks like there are two offerings for the HQ market: Shelby Arena and Shelby v.5. Is this the same Shelby Arena mentioned above? What are the main differences between Shelby Arena and Shelby v.5?

Shelby Systems: Yes, it is the same Shelby Arena we discussed before, however, with the addition of a large feature set designed for and with headquarters offices and nonprofit needs in mind. HQ feature sets are available in both Shelby Arena and Shelby v.5. The key differences are the same as we listed before with Shelby Arena and Shelby Church. When a headquarters, district, regional office, or nonprofit chooses Shelby, the features delivered within either product are specific to their needs.

Nate: What types of support are available?

Shelby Systems: Support with all Shelby software is bundled with maintenance & updates and varies based on a ministry’s Shelby package. It is an annual cost. There are a multitude of support options available to Shelby churches, including: phone, email, live chat, and live assist. Also, our Community sites provide you with forums, knowledge base, documentation, and training videos.

Nate: Does the Shelby Financial Suite come prepared to make financial statements that are in compliance with the FASB? What steps have you taken at Shelby to ensure accounting compliance?

Shelby Systems: Yes, we have the standard reports that comply with the FASB and GAAP principles. We take many steps to ensure our accounting compliance. We have a CPA on staff and a CPA certified in not for profit accounting that consults with us on a regular basis for future and current financial products.

Nate: What else would you like my readers to know?

Shelby Systems: I’m excited to announce to your readers that Shelby will be releasing an online financials product in 2012! We will be leading the way with this technology and we believe this will make our software accessible to an even wider array of ministries. As we mentioned earlier, Shelby Arena will also be available now as Hosted software (SaaS), which is a huge benefit to churches without paid IT staff or those who prefer to outsource their server maintenance and updates to Shelby. We’d also love to connect with your readers through social media. They can find us on Twitter (@shelbysystems), Facebook (fb.com/shelbysystems), Google+ (gplus.to/shelbysystems), and LinkedIn. Lastly, our annual conference occurs every June and we love to host anyone with questions about our software who would like to see it in action. You can find more info about the International Shelby Conference (ISC) at shelbysystems.com/isc. We’re also running regional demos, so be sure to ask us when we’ll be coming to a city near you. If you have any additional questions, feel free to contact us (shelbysystems.com/contactus) any time or if you prefer us to follow up with you, please go to shelbysystems.com/moreinfo.

Thank you so much to Nate for taking the time to chat with us and review our software. We can’t wait to connect with your readers. Be sure to tell us that Nate sent you!

Qualified Vehicles:

The IRS has developed guidelines regarding the donation of qualified vehicles to charities, which includes churches. The IRS has defined a qualified vehicle as :

• • • A car, or any motor vehicle manufactured mainly for use on public streets, roads, and highways,
    • A boat, or
    • An airplane

It should be noted that a car donated by a person who owns a car dealership would not be considered a qualified vehicle, but rather a donation of inventory.

Mechanics:

In most cases, the donor will transfer title of the vehicle to the church. Each state has different requirements regarding vehicle registration and title transfer. Please contact your local Department of Motor Vehicles to ensure that is being handled correctly. The donor will also provide the church with a claimed value of the vehicle. Once the church has the vehicle, they must determine if they are going to sell it, keep it, or give it to a needy person. The value of the vehicle also determines what type of reporting the church must provide.

Reporting Requirements of the Church:

Basically, the reporting requirement for the church depends if the donor valued the vehicle at $500 or less or at more than $500.

If the vehicle is valued by the donor at $500 or less, the church has two options on how to report the contribution. The two options available are:

• • • Provide a contribution receipt to the donor that lists the description of the vehicle, but not the value. Please refer to the non-cash article for details on the contribution receipt for non-cash donations.
    • Provide the donor with IRS Form 1098-C with Box 7 checked. In this instance where the value is determined to be $500 or less, the form should not be filed with the IRS.

If the vehicle is valued by the donor at more than $500, the church must file IRS Form 1098-C. Please see IRS Form 1098-C “Contributions of Motor Vehicles, Boats, and Airplanes” and Instructions for Form 1098-C for more details.

In order for the donor to claim an income tax deduction for the vehicle, the church must furnish copy B of Form 1098-C to the donor no later than 30 days after the:

• • • Date of sale if the car was sold at an auction by the church. or
    • Date of the contribution if the church is going to keep the vehicle for use by the church or if they are going to give it to a needy individual.

Penalties That Could be Imposed on the Church:

The church could face penalties imposed by the IRS if they fail to furnish IRS Form 1098-C to the donor, if they furnish a false or fraudulent acknowledgment or if they fail to furnish the acknowledgment in the manner and time required. These penalties all relate to the timely and accurate completion of Form 1098-C.

Income Tax Deduction For the Donor:

The donor can usually deduct the smaller of the gross proceeds from the sale of the vehicle by the church or the vehicle’s fair market value on the date of contribution. If the gross proceeds is the higher number, the donor must attach Form 1098-C that they receive from the church to their tax return. There are two exceptions to the above mentioned rule. The exceptions are:

1. If the church decides to keep the vehicle and use it in church operations or if they keep it and make improvements to it before transferring it, the donor can generally deduct the fair market value at the date of contribution. This will be handled on the Form 1098-C that the church will provide to the donor.
2. If the church gives the vehicle or sells it to a needy individual at a price below fair market value, the donor can generally deduct the fair market value at the date of contribution. Again, this will be detailed for the donor on the Form 1098-C that the church will provide to the donor.

Thank you for joining Icon Systems in this series on contribution reporting. We hope this has been informative to you. As always, please consult your CPA because you may have tax situations that are unique. Additionally, IRS rules are subject to change.

This current article will focus on how churches, donors, and the IRS handle contributions of stock and IRAs given to churches.

Contributions of Stock:

A contribution of stock is just another form of a non-cash contribution. As mentioned in earlier articles, the donor is responsible for obtaining the fair market value of the donation for his income tax return. Additionally, the donor is responsible to obtain from the church a written receipt for any single cash or non-cash donation in excess of $250. In no circumstances will the church put the value of the stock on the contribution receipt. They will, however, describe the stock on the statement.

Housekeeping Details:

If a donor wishes to donate stock to a church, how should they go about doing this? The donation will start by the donor sending the stock certificates and a signed stock power to the church. Alternately, the stock can be transferred directly from the donor’s brokerage account into the church’s brokerage account if they have one.

Is it better for the Donor to Contribute the Stock to the Church or to Sell the Stock first and then donate the Proceeds?

Like most everything in the tax world, the answer depends on the donor’s individual situation.
The donor may have stock that has appreciated in value since it was purchased. If he donates it to the church, he avoids having to pay the capital gains tax on the sale plus he can also take a charitable donation for the fair market value of the stock. It is almost like getting a double benefit for the donor! In turn, if the donor would realize a loss on the sale of stock, he would probably benefit by selling the stock first, claiming the loss on his tax return, and then donating the proceeds to the church.

Stock owned by the donor is classified as a capital asset and is taxed depending on how long the stock has been held. If the stock is held for more than 1 year and then sold, long term capital gains tax rates apply to any gain on sale. If the stock is held for 1 year or less, the gain is taxed at the ordinary income tax rates of the taxpayer. For 2011, the long-term capital gains tax rate is 15%. This is due to increase to 20% in 2012.

Lets take a look at some comprehensive examples of a donor who is thinking about either contributing his stock to his church or selling the stock first and then donating the proceeds to the church. The facts are as follows:

• • Donor purchased 10 shares of XYZ stock on 1/1/2000 for $300.
  • Donor contributes the 10 shares of stock to his church on 11/1/2011.
  • The fair market value of the 10 shares of stock on 11/1/2011 is $1,200.
  • The long term capital gains tax rate for 2011 is 15%
  • The long term capital gains tax rate for 2013 is 20%

• Example 1: Donor sells the stock for $1,200 on 11/1/2011 and donates the proceeds to the church:
  • The gain on the sale of the stock is $900 ($1,200 sales price less $300 cost basis)
  • The gain on the sale is taxed at the long-term capital gains rate. The donor pays $135 ($900 * 15%) tax on the gain on his income tax return.
  • The donor makes a cash donation of $1,065 ($1,200 proceeds less $135 tax paid)
  • The church enters the cash donation on the donor’s contribution record and supplies the donor with a written receipt for the donation of $1,065.
  • The donor takes a charitable income tax deduction of $1,065.
  • The church records a debit to “Cash” and a credit to “Contribution Revenue” in the amount of $1,065.

• Example 2:  Donor sells the stock for $1,200 on 1/1/2013 and donates the proceeds to the church:
  • The gain on the sale of the stock is still $900.
  • Since the sale is made in 2013, the donor is subject to the long term capital gains tax rate projected to be in effect for 2013. As of the writing of this article, that rate is 20%. The tax on the gain is $180. ($900 * 20%)
  • The donor makes a cash donation of $1,020. ($1,200 proceeds less $180 tax paid)
  • The rest of example 1 applies here except the amount is changed from $1,065 to $1,020. Notice that waiting to make the sale in the new year results in the payment of $45 more tax for the donor and receipt of $45 less donation for the church

• Example 3:  Donor contributes the stock to the church on 11/1/2011
  • Since the stock is being donated and not sold, the donor does not need to report or pay any tax on the capital gains.
  • The church will provide the donor with a receipt that provides a description of the stock “10 shares of XYZ stock” but will not include a monetary value on the receipt. This is because the donor is responsible for determining the fair market value of the donation, not the church. See the non-cash donation article for more details on determining fair market value of non cash donations.
  • The church should record the stock donation on their books at fair market value as of the date of donation. In our example, this is $1,200. The church would make an accounting entry to debit “Investments – Stocks” and credit “Contribution Revenue” for $1,200.
  • The church sells the stock on the same day for $1,200. The accounting entry the church should record would be a debit to “Cash” and a credit to “Investments- Stock” for $1,200.
  • In order for the donor to take an income tax deduction on their tax return, they must complete IRS Form 8283. In our example, the amount for the taxpayer would be $1,200. This amount would be recorded in Section A of Form 8283.
  • If the amount of the stock in our example were over $5,000, the donor would need to complete Section B of Form 8283. If this section is completed, the donor will ask the church to sign the Section called “Donee Acknowledgment”. See IRS Form 8283 “Noncash Charitable Contributions” for more details.
  • Additionally, if IRS Form 8283 Section B 1 is completed because the donation is over $5,000, the church must complete IRS Form 8282 if the donated property is sold within 3 years of receipt. See IRS Form 8282 “Donee Information Return”. This form must be mailed to the IRS within 125 days after the date of sale.
  • Notice in this example how the donor does not pay tax on the appreciation of the stock and receives a donation for the appreciated amount. In turn, the church receives the full benefit of the appreciated stock. In our example, if the church later sold the stock for a gain, it wouldn’t matter because the church does not pay tax.

Charitable Contributions Received from IRAs

In 2006, a tax situation was created that favored individuals age 70 ½  or older to make qualified charitable distributions from their otherwise taxable individual retirement accounts (IRAs). The provision expired at the end of 2009. In 2010, as part of the 2010 Tax Relief Act, the provision was extended through December 31, 2011. As of the writing of this article, it is not known if this benefit will extend to the end of 2012.

This benefit works a little differently in that it does not result in an income tax deduction but results in an exclusion from gross income. To understand this better, lets take a closer look at it.

Individuals under the age of 70 ½ by the end of the year and who have taxable income are eligible to open a Traditional IRA. A Traditional IRA may be tax deductible or non-tax deductible on the individual’s tax return depending on a number of different factors. See IRS Publication 590 “Individual Retirement Arrangements” for more information. When the person reaches age 70 ½, they must start taking money out of the account. The amount they have to take out each year is prescribed by the IRS and is called the required minimum distribution. This distribution is taxable income to the individual and is included on their tax return. (Notice how the traditional IRA differs from the ROTH IRA. The traditional IRA receives tax deductions when the money is contributed to the fund but is taxed when the money is taken out. The ROTH IRA has no tax breaks when the money is contributed to the fund, but is not taxed when the money is taken out).

The current tax law due to expire 12/31/2011, states that individuals age 70 ½ or older may distribute up to $100,000 per tax year directly from their Traditional IRA account to a church without having to include the distribution in their gross income. This results in the payment of less income tax. The distribution to the church can also satisfy the required minimum distribution limits. In order to claim this tax benefit, the individual must obtain the proper contribution receipt from the church, even though the individual is not taking an income tax deduction. Generally, the church will receive a check from the administrator of the IRA. The church should record this money received on the individual’s contribution statement with a description of IRA proceeds included. If the church received shares in the IRA, then the contribution statement should be handled the same as the receipt of stock.

As always, please consult your CPA because you may have tax situations that are unique. Additionally, IRS rules are subject to change.

Icon Systems appreciates bringing these resources to churches hosted by Church Accounting Software Guide. The last one will deal with the receipt of automobiles, boats, and other vehicles by churches.

Definition:

Non-cash contributions are also known as gifts in kind. They can be anything from office supplies, computer equipment, books, stocks, real estate to automobiles. It is important to keep in mind that the church should either be able to use the donated property as a part of their operations or they should be able to easily sell the donated property and use the proceeds for church operations. If the donated property can fulfill one of the two requirements, the donor may be able to take a charitable income tax deduction on their tax return.

What about volunteers who work in the church? They are definitely necessary in the operations of the church. Should their services be reported as non-cash donations and they in turn take income tax deductions on their tax returns?  Isn’t this just another form of a non-cash donation? Unfortunately, the IRS has stipulated that you can not receive a charitable income tax deduction for the value of your time or services.

Another area that needs to be further examined is the importance to distinguish between a tax deductible non-cash donation to a church and a non-tax deductible personal gift to a minister that may need to be included in his gross income. Donations of a personal nature, whether cash or non-cash, are not considered charitable contributions but rather personal gifts. They are not tax deductible and may need to be included in the gross income of the minister.

Lets take a look at some examples and see what their tax consequences may be:

• Example 1: Donor gives two cases of paper to the church
  • The paper can be used in the normal operations of the church. The donor may be able to take an income tax deduction for the paper.

• Example 2:  Donor gives land to the church.
  • The land can be sold with the proceeds going toward the normal operations of the church. The donor may be able to take an income tax deduction for the land.

• Example 3:  Donor gives a computer to the minister to work on at home. It is used by the entire family.
  • The computer is deemed a personal gift to the minister. The donor can not take an income tax deduction for the computer.

• Example 4:  Donor gives a computer to the church office. The minister will be the primary user of the computer. The computer will stay at the church and will be used for church work exclusively.
  • The computer will be used in the normal operations of the church. The donor may be able to take an income tax deduction for the computer.

• Example 5:  Donor is a volunteer who works 10 hours per month in the church office. There is one paid office staff position at the church that pays $8.00 per hour. The volunteer would like a statement from the church that shows they work 10 hours per month in order to claim an income tax deduction.
  • The IRS does not allow an income tax deduction for the value of your time or services. No income tax deduction will be allowed for the volunteer.

Now that we have seen some examples of what non-cash donations are, lets take a look at the reporting requirements the church may have.

Reporting Requirements of the Church:

What reporting requirements does the church have, if any, if they receive non-cash donations?

Basically, the donor is responsible for obtaining a written receipt from the church for any single cash or non-cash contribution of $250 or more in order to claim an income tax deduction. Although the church is not required to provide a receipt, they may want to help the donor in this process since most churches rely on the generous support of their members. The church receipt should contain the following information:

• • Name of the church
  • Amount of cash contribution
  • Description (but not the value) of non-cash contribution
  • Statement that no goods or services were provided by the church in return for the contribution, if that was the case
  • Description and good faith estimate of the value of goods or services, if any, that an organization provided in return for the contribution
  • Statement that goods or services, if any, that the church provided in return for the contribution consisted entirely of intangible religious benefits, if that was the case.

Value of Non-Cash Donations for the Contribution Statement

The value of a non-cash donation is not recorded on the contribution statement sent to the donor. This is because the church is not responsible for determining the value of the donation in regards to the donor’s income tax return. The donor is responsible for coming up with this value. The donor will usually do this by consulting with his CPA and using the fair market value as outlined in IRS Publication 561 Determining the Value of Donated Property. Although the value is not stated on the contribution statement, a detailed description of the donated property is. (i.e. 300 shares of Microsoft stock)

Value of Non-Cash Donations for the Financial Statement

Although the value of non-cash donations are not recorded on the contribution statements, they are recorded on the financial statements of the church. This would involve an accounting entry that is not linked to the individual contribution module. The entry would be a credit to contribution revenue and the debit would depend on the nature of the donated property. For example, if paper was donated, the debit could be to office supplies expense. The dollar amount to be used should be the fair market value of the property at the date of the donation.

Benefits to the Donor of Non-Cash Donations

There are some real benefits to donors who contribute non-cash items to churches. Most of the benefits occur when they donate property that has appreciated in value. For example, lets say a donor purchased stock 10 years ago for $100 and on December 1, 2011  the stock has a fair market value of $1,000. If the donor sells the stock for $1,000, they will receive $900 in cash and will need to report a $900 long term capital gain on their tax return. (For purposes of our example, lets use a long term capital gains rate of 15% for 2011). After paying federal tax of $135 on the gain, the donor then has $765 available to donate to the church. The church would then receive a cash donation of $765 and the donor would be able to receive an income tax deduction for $765.

Now lets take a look if the donor donated the above mentioned stock to the church on December 1, 2011. The church will receive the stock and will issue a contribution statement to the donor describing the property – but not the value- received. The statement may say something like “200 shares Microsoft stock” and may list the stock numbers. The church intends to hold on to the stock for a period of 5 years. The donor has determined that the fair market value at the date of contribution is $1,000. This is the amount he will receive as an income tax deduction. Notice that the donor does not need to record or pay tax on a long term capital gain. In turn, the church decides that the fair market value of the stock on the date of contribution is $1,000. They will record this on their books as a debit to “Investments- Stock” and a credit to “Contribution Revenue” in the amount of $1,000.

What Other Forms Should I be Aware of Regarding Non-Cash Donations?

As indicated before, the church is not responsible for a lot of the reporting regarding non-cash donations, however, as a service to their members, it would be advantageous for them to be aware of some of the additional forms involved with non-cash donations.

Some of the additional forms involved with non-cash donations include:

• IRS Form 8283- If the donor values the non-cash property at more than $500, they are required to complete IRS Form 8283. If the donated property is valued over $5,000 the IRS requires it to be listed in Section B Part 1 of this form. If Section B Part 1 is completed, in order to obtain an income tax deduction, the donor will require the church to complete Section IV “Donee Acknowledgment”. Additionally, the IRS will require the donor to obtain a qualified appraisal for property listed in Section B Part 1. Please refer to IRS Form 8283 “Noncash Charitable Contributions” for more information.

• IRS Form 8282 – If the donor lists the non-cash property on Section B part 1 of Form 8283 as described above, IRS Form 8282 must be completed by the church if the church sells or disposes of the donated property within 3 years of receipt. This form needs to be completed and mailed to the IRS within 125 days after the date of sale. Please refer to IRS Form 8282 “Donee Information Return” for more information.

The above article does not apply to the donation of vehicle or boats. That topic will be addressed in a separate article.

As always, please consult your CPA because you may have tax situations that are unique. Additionally, IRS rules are subject to change.

Icon System’s looks forward to bringing this contribution series to churches and other non-profits so they understand the complex reporting regulations better. The next article in this series will deal with the receipt of stock and IRAs by churches.

Part 1

With the Holiday season and year end rapidly approaching, it might be a good time to review the reporting requirements for churches who receive contributions.

General Requirements:

As tax exempt organizations, churches are qualified by the Internal Revenue Service (IRS) to receive contributions from donors. Since qualified churches are not subject to federal income tax, these donations are tax-free to the church. Donors, in turn, may be able to deduct their contributions to churches on their income tax return. In order to take advantage of these special tax situations, the IRS has developed rules that apply to donors and to churches regarding contributions. These general rules are as follows:

• In order to claim a federal income tax deduction, the donor must have either a bank record or a written communication from the church.
• The donor is responsible for obtaining a written acknowledgment from the church for any single cash contribution of $250 or more.
• The church is required to provide a written disclosure to a donor who makes a payment in excess of $75 and the payment is partly for a donation and partly for goods and services received.

Lets take a detailed look at these three general rules and then move on to specific situations that churches may face.

The donor must have either a bank record or a written communication from the church :

For cash, check, or other monetary donations made after January 1, 2007, the IRS requires that the donor have either a bank record (i.e. cancelled check) or a written communication (i.e a receipt or letter) from the church in order to claim an income tax deduction. This requirement places the responsibility of obtaining the necessary documents on the donor. Although the church will not incur a penalty if they do not provide this information, the donor may not be able to deduct the donation on their income tax return without it.  This may affect future contributions that the donor wished to make. Since most churches rely on the generous donations of their members, it may benefit them to assist the donors in this process. The written church communication to the donor should include the following:

• the name of the church
• the date of the donation
• the amount of any cash contributions

The donor must receive a written acknowledgment from the church for any single cash or non-cash contribution of $250 or more:

The donor cannot claim an income tax deduction for any single contribution of $250 or more unless the donor receives a written acknowledgment from the church. The church can either provide separate acknowledgments for each single contribution of $250 or more or one acknowledgment for several donations of $250 or more. The total yearly contributions are not added together to arrive at the $250 threshold. For example a written acknowledgment would not be required for a donor who donates $10 per week for 52 weeks (total of $520) even though the total is more than $250. If the donor made only two contributions of $260 each, then they would need a written acknowledgment. As mentioned in the first rule above, the church would not incur a penalty for neglecting to furnish the proper receipt, but churches who value their donors may wish to provide it. If the donor claimed an income tax deduction for the contribution and did not receive the proper receipt, the IRS could disallow his contribution on his income tax return. Again, this could affect any future contributions that the donor wished to make. This written acknowledgment should include the following:

• the name of the church,
• the date of the donation,
• the amount of any cash contributions,
• a description (but not the value) of non-cash contributions.
• In addition to the above, the written communication must contain one of the following statements:

• • “No goods or services were provided by the church in return for the contribution.”

• • “Goods or services that the church provided in return for the contribution consisted entirely of intangible religious benefits.”  Or

• • A description and good faith estimate of the value of goods or services other than intangible religious benefits that the church provided in return for the contribution.

The church is required to provide a written disclosure to a donor who makes a payment in excess of $75 and the payment is partly a donation and partly for goods and services received.

Sometimes churches host charitable events where the public needs to purchase a ticket to attend. Donors can only take an income tax deduction for the portion of the payment that is in excess of the fair market value of the goods or services received. For example if a church charges $100 for a “Fall Festival” which includes a meal valued at $30, the donor can only take a charitable deduction for the portion that exceeds the fair market value of the meal. In this example, the charitable donation would be $70. Even though the charitable portion is under the $75 threshold, a written acknowledgment is required because the total payment was in excess of $75.

In addition to the name of the church, the date of the donation, and the amount of the payment, the written disclosure should include:

• A statement that “ The amount of the contribution that is deductible for federal income tax purposes is limited to the excess of money (and the fair market value of any property other than money) contributed by the donor over the value of goods or services provided by the church.” AND
• Provide the donor with a good faith estimate of the value of the goods or services received by the donor.

The IRS calls the above mentioned donations quid pro quo. Further details about them can be found in the IRS code section 6115. The IRS can also impose a penalty to churches who do not follow the above rules. These penalty amounts can be found in IRS code section 6714. Section 6714 states as follows:

• • (a) Imposition of penalty – If an organization fails to meet the disclosure requirement of Section 6115 with respect to a quid pro quo contribution, such organization shall pay a penalty of $10 for each contribution in respect of which the organization fails to make the required disclosure, except that the total penalty imposed by this subsection with respect to a particular fundraising event or mailing shall not exceed $5,000.
  • (b) Reasonable cause exception – No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.

In plain English, this means that churches could be penalized $10 for each quid pro donation that was not properly disclosed with a penalty cap of $5,000 for each fundraising event. Proper disclosure means that it follows the rules mentioned above. Additionally, the IRS can impose a penalty to the church of $1,000 per person per year for aiding and abetting an understatement of tax under IRS code section 6701. This means that “the church knows or has reason to believe that members will rely upon the contribution statements the church provides in connection with reporting their tax liability and that the reliance on those statements will result in an understatement of tax.” Serious stuff indeed!

The IRS does allow some exceptions to the above rule. If an exception is met, the church does not need to provide the fair market value of the goods or services received by the donor on the contribution receipt or statement. These exceptions are as follows:

• Token Exception
• Membership Benefits Exception
• Intangible Religious Benefits Exception

Lets take a look at the three different types of exceptions listed above.

Token Exception:

• Insubstantial goods or services a church provides in exchange for a contribution do not have to be described or valued in the acknowledgment.
• Goods and services are deemed insubstantial if the payment occurs in the context of a fund-raising campaign in which the church informs the donor of the amount of the contribution that is a deductible contribution and:
  • the fair market value of the benefits received does not exceed the lesser of 2% of the payment or $96, or
  • the payment is at least $48, the only items provided bear the organization’s name or logo (i.e., calendars, mugs, or posters), and the cost of these items is within the limit for “low-cost articles”, which is $9.60.
  • Free, unordered low-cost articles are also considered insubstantial.

The insubstantial goods or services dollar amounts listed above are for 2010. Guideline amounts are adjusted for inflation. Contact IRS Exempt Organizations Customer Account Services at (877) 829-5500 for annual adjustment information.
Membership Benefits Exception:

• An annual membership is considered insubstantial if it is provided in exchange for an annual payment of $75 or less and consists of annual recurring rights or privileges, such as:
  • free or discounted admissions to the church’s facilities or events
  • discounts on purchases from the church’s gift shop or library
  • free or discounted parking
  • free or discounted admission to member-only events sponsored by an organization, where a per person cost is within the “low-cost articles” limits.

Intangible Religious Benefits Exception:

• Benefits provided by the church that are not usually sold in commercial transactions
• Examples include wine served in a religious ceremony, admission to a religious ceremony, and receipt of a church newsletter.
• Benefits that are not intangible religious benefits include tuition for education leading to a recognized degree, travel services, and consumer goods.

Please refer to the “Charitable Contributions – Substantiation and Disclosure Rules” portion of the IRS publication “Tax Guide for Churches and Religious Organizations” or the IRS publication  “Charitable Contributions – Substantiation and Disclosure Requirements” for more information. As always, please consult your CPA because you may have tax situations that are unique. Additionally, IRS rules are subject to change.

Icon Systems’ IconCMO addresses all of the unique situations above for churches and we look forward to working with your organization.

Background Information

Cost of QuickBooks Premier Non-Profit Edition 2012 (if you purchase it through a link on my website): $320

Cost of QuickBooks Monthly Payroll Program

• Basic: $108 a year
• Enhanced:  $236 a year

Let’s do some math.

*It is usually considered best practice to upgrade QuickBooks every three years, so we’ll look at this from a three year perspective.

Cost of QuickBooks Nonprofit ($320) divided by 36 months = $8.89 a month

Cost of Basic Payroll ($108 * 3years) divided by 36 months = $9 a month

Cost of Enhanced Payroll ($236 * 3years) divided by 36 months = $19.67 a month

If you want to go really cheap, you can do the payroll yourself without the extra software. That means you can get your church accounting done for $9 a month! That’s pretty hard to beat, especially considering the quality of the QuickBooks software.

Add the basic payroll and you’re looking at about $18 a month (with the enhanced payroll you’re looking at about $29 a month).

$30 a month to get the most popular accounting software in the world (along with payroll) is a pretty deadly combination.

Click Here to Save 20% Off QuickBooks Premier Accounting Software + Free Shipping

 
 
 
QuickBooks will take care of all of your accounting needs, but what about managing your members? Some churches operate without church management software, but many churches like having some software that will keep all of their member information organized.

Most of the church management packages out there nowadays will interact quite well with QuickBooks, but the one that seems to work best with QuickBooks is Servant Keeper by Servant PC.

Servant Keeper Costs $499. According to a frequently asked question on their website, you have to upgrade about every 3-5 years. We’ll use three years just to keep things simple.

The cost of Servant Keeper $499 divided by 36 months = $13.86 a month

This means that if you were going with the most expensive QuickBooks package and Servant Keeper you would be looking at $43 a month. Note that this doesn’t include any extras (which you may or may not need).

If you wanted to go really cheap and drop payroll, you could do your church management and accounting for $24 a month. This is for the top of the line accounting software that over 80 percent of all churches are using. Not a bad deal in my opinion.

Hopefully this helps shed some light into what the costs of QuickBooks are. Remember that you get 20 percent off any QuickBooks purchases if you click through to QuickBooks on one of the links on my site.

Happy Accounting!

You’ve all seen them at church. Members popping out these strange looking devices during a sermon or Sunday School class. At first we thought they were playing games on them, but now we know that they were actually following along by reading the assigned scriptures or lesson manual.

The good people over at Icon Systems have released an application that will allow church leaders to manage their church using mobile devices like the iPad. I had to find out more so I contacted them with a few questions.

How will this make accounting and management better for churches?

Bill (President): Most people enjoy iPads and other portable devices; they provide a source of entertainment and are a great way to communicate as well as find information. With the availability of a full accounting system mobile devices have become much more than entertainment and communication devices: they are now valuable business tools.

Jay (Sales): If someone asks a question during a board meeting but no one happened to bring a copy of that particular report. Someone would either have to take a guess, follow-up later, or run back to their desk to print the report. What if the council wants to change a budget or prefers that some entries be reclassified to a different fund or general ledger account? The best they could do is take note of the changes and make the adjustments after the meeting. Accessing the church database on the iPad grants users the freedom to instantly make changes and provide accurate information no matter where they are.

Do you see a fair amount of churches using portable tablets in the future or will they remain somewhat of a novelty?

Bill: A high-powered laptop is not needed for typical tasks such as surfing the Web, taking notes, emailing, and social networking. Tablets are not only fully capable of the above tasks, but also offer additional benefits: they are lightweight, have an extended battery life, and offer quick availability since they are always on. Technology is definitely trending towards mobile devices. Tech-savvy individuals are not the only ones using mobile devices; the general population has also discovered ways in which mobile devices make life easier.

Jay: Essentially, new technology brings more opportunities that churches can use to help grow their organization. Mobile technology and social media are a powerful combination; users anywhere can hear about a struggle someone is having and post it to Facebook, Twitter, or other applications. Icon Systems is working to offer our services on as many mobile devices as possible including various types of phones as well as tablets such as the iPad, Motorola Zoom, and Samsung Galaxy.

Please tell us about all the exciting features. I have to admit that as someone who helps manage a church I’m excited to read about your offering.

Bill: Icon Systems has adjusted the menus to provide a larger work-space and easier navigation.  The larger work-space increases productivity by allowing multiple windows to be open at the same time so users can view and edit more information. Touch navigation has been added so customers have a true mobile experience with the familiarity of other applications they currently use. Time is the most valuable commodity people have so allowing volunteers and staff to complete objectives while on the go saves the church time and money.

Jay: The main goal behind this advancement of church software is bringing the church’s database (accounting, contributions, payroll and membership) into the hands of the user wherever they may be located. Icon Systems is taking IconCMO and putting it all on the portable tablet devices to be completely mobile.

Here are some great examples of how churches can use the iPad:

• Send an email blast to the church’s prayer chain within minutes rather than waiting hours or days after being notified of critical information.
• Pastors can determine how to best serve members by viewing email history, notes, reminders, attendance reports, and group assignments.
• Group leaders can use the iPad to take attendance for children’s bible education, adult ministries, addiction counseling, or any other ministries the church offers.

A recent blog post by MicrosoftTag supports the idea that mobile devices will become commonplace because of their versatility. Mobile devices started to be useful in our personal lives, however with an increase in development for web application they are becoming a vital business tool. There are many reasons why: low hardware cost, portability, speed and functionality, and sleek user interfaces. The post also reported that mobile devices are expected to account for more Internet usage than desktop computers by the year 2014. People enjoy using their mobile devices and are looking for new ways to fully utilize the technology.

Since technology moves at record breaking speeds, your ChMS needs to move just as fast. The church should embrace mobile technology and utilize it to raise community awareness, increase donations, quickly change data on the fly, and bring ease of use to members and staff while keeping everyone as mobile as possible. Engaging members through instant communication is essential for churches; people are busier than ever before and staying productive while on the go is a must. Icon Systems, Inc. is dedicated to connecting churches with the latest technology.

For multisite organizations with offices on other continents delivering mobile technology to them is essential. IconCMO has been deployed within organizations that span several continents successfully. Adding this mobile technology helps those organizations do their job effectively no matter where they are located. Many countries use Internet cafes requiring traveling instead of having the Internet in their homes. Now they can use the cellular networks to access their church software solution and save time in traveling that can be devoted to ministry work.

Here are my bullet points from the interview:

• ChurchTrac allows you to enter up to 100 names for free. This is a great way to ensure that this is the right software for your church (without having to spend a dime).
• ChurchTrac is meant to be easy and intuitive. It’s a great low-cost option for churches who are on a tight budget. Support costs are generally low.
• Very cool feature that lets you send out a mass reminder phone call to members of the church. This can be a great way to remind members about an event (huge time saver).

Read below for the full interview with Byron, an employee of ChurchTrac.

How can ChurchTrac help smaller churches that are just starting up?

Byron (ChurchTrac Employee): ChurchTrac is the perfect software solution for new church starts and for smaller churches. That’s because smaller churches can use ChurchTrac for free. It is our ministry to the churches who might not otherwise be able to afford a quality church software program—helping churches to more effectively minister is the heart behind what we do. The program allows you to enter up to 100 names and there’s no cost until you need to enter more. There are no hoops to jump through—just download, install and start using ChurchTrac. Additionally, the free users don’t get a watered-down version—everything in the program is accessible.

But free software that doesn’t deliver is no benefit to anyone. That’s why ChurchTrac does everything from membership management to Sunday school, attendance tracking to absentee follow-up, contributions, accounting, and everything in between.

Many times new church startups don’t have a central office, which can make sharing information challenging. ChurchTrac is able to bridge this gap with our data sharing feature. This allows multiple computers in different locations to share ChurchTrac data and stay in sync with each other. (This feature is one of two optional add-ons we offer, but it only costs about 5 dollars a month to add the data sharing). The data sharing feature also works great for pastors and staff who have laptops or for churches that have volunteers who work from home. Unlike web-based programs, this means that your data is always accessible, even when you’re not connected to the internet.

What sets ChurchTrac apart from all the other major church management software programs available?

Byron: ChurchTrac is a software program that was created to be a blessing and help to Christian-based churches and ministries. The fact that we give it to smaller churches for free is unique in the industry. We also have a tiered pricing structure for churches that need to enter more than 100 names, which is pretty unique. With our tiered pricing, the fewer the names you need to enter, the less it costs. Regardless of which level your church needs, ChurchTrac is perhaps the most reasonably priced church software product on the market, in most cases costing hundreds of dollars less than others.

One of the things that we hear frequently from our customers is how easy ChurchTrac is to use compared to other church software programs. ChurchTrac was designed from the beginning to be easy to learn and use, and that is reflected on every screen in the program. And as we get feedback from our customers, we do our best to make ChurchTrac even better by listening to their suggestions.

Because ChurchTrac is easy to use, our technical support system is also different from most software companies. Many software companies have expensive support packages that you must buy, or offer expensive training seminars that you almost have to attend if you want to learn how to use their package. In fact, selling “support” is a huge source of profit for most companies, so there is no incentive for them to make their programs easier to use. Our philosophy is to make the software as easy to use as possible. When you do need help, we offer a large selection of free help resources on our website, including tutorials, videos, and answers to frequently asked questions. Email support is also free. And if you do need to call us, you only pay a small fee per incident—which can save you hundreds of dollars compared to the annual support subscriptions other companies charge.

If you could show everyone interested in purchasing church management software just one screenshot from ChurchTrac, what screenshot would it be? (Please attach the screenshot). Would you be willing to explain the screenshot and tell us why it is important?

Byron: ChurchTrac is organized into a series of logical screens that give you quick access to areas of the program. For example, when you click on the People tab, the People screen is displayed, as shown here:

Like the People screen, each screen in ChurchTrac is intuitively laid out in two or more sections. Here, when you click a name in the list on the left, the information about that name is displayed on the right side of the screen. (The Contributions screen, for example, works in a similar fashion: When you click on a date on the left, the contributions from that date are displayed on the right).

Here we see a quick glance at the selected person’s contact and family information. You can also customize the user-defined fields, which allow you some flexibility in what information you want displayed on this tab. The People screen tabs give you quick access to other information about the selected individual, including their SHAPE ministry profile, pictures, notes, and more.

The People screen also gives you quick access to a large number of reports and communication options. You can quickly print birthday lists, mailing labels, maps, letters, send emails, and create custom reports, just to name a few.

ChurchTrac is also highly customizable. Any blue text box can be double-clicked to customize the contents of that field (and there are dozens of customizable fields in ChurchTrac). For example, the Member Status and Age Category fields are blue, so you can create your own categories for these fields. The User-Defined tab on the People screen gives you the added ability to create and customize your own fields for tracking information that isn’t already built into the program.

Your website mentions that ChurchTrac can be used for any size of church. What is the largest church, in terms of number of members, that is using your software? How many members do they have? (If you can’t divulge the name of the church, just give us the number of members: estimates are okay).

Byron: We don’t actually ask how large a church is when someone purchases our software, but we have a good idea based on which unlock code tier they purchase. Our most popular option is the 250 name unlock code—perhaps half of our paying customers are in churches running between 100 and 250 people. We do sell quite a few of the unlimited name packages too (I’d estimate that 1 in 5 purchases is an unlimited name unlock code).

My church uses ChurchTrac and we have over 1500 names in our database—so it can definitely handle that capacity with ease. With the data sharing add-on, ChurchTrac can easily accommodate churches with a couple thousand names and a dozen or more users and computers.

A lot of people are worried about being in compliance with the IRS and the Financial Accounting Standards Board (FASB). What is ChurchTrac doing to help ensure churches are in compliance?

Byron: ChurchTrac’s contribution and pledge reporting statements meet current IRS requirements as listed in IRS Publication 1771. The contribution statements also allow you to customize the messages that are displayed, so it is easy to change or update as necessary to meet your specific needs. ChurchTrac also has the ability to distinguish between a tax-deductible and non-tax-deductible contribution, and we offer some tips and a summary of some of these IRS guidelines in the knowledgebase on our website.

ChurchTrac’s accounting features are designed with simplicity in mind. Users who are familiar with the Quicken line of products will find that ChurchTrac’s accounting system is very similar. Based on a church’s accounting needs, we sometimes recommend that they supplement ChurchTrac with a professional-level accounting program. In fact, many churches use ChurchTrac’s excellent membership, attendance and contribution tracking alongside a dedicated accounting program like QuickBooks.

Anything else you would like to tell my readers about ChurchTrac? This is your chance to put in a plug for your product.

Byron: Having the right tools for the job makes a huge difference. And that’s what ChurchTrac is—a tool to help you stay organized, keep up with the people in your ministry, and perform the tasks you need to do to get the job done. Our mission is to equip churches and church leaders to more effectively fulfill their calling.

As such, we’re always striving to make ChurchTrac even better. We recently added a messaging feature that works like a phone tree. ChurchTrac can use your internet connection to call a list of numbers and deliver a pre-recorded message or text message. This enables you to deliver important messages to a lot of people in a short amount of time without having to purchase expensive equipment or extra phone lines.

Another new feature that we’ve recently added is our barcode check-in and child security screen. This allows you to use a barcode scanner to check in people as they arrive. It also allows you to print information tags for children, allergy information, security pick-up tags, and more. This feature helps to ensure that the children’s workers have accurate instructions from the parents, it guards the church against negligence, and it gives peace of mind to the parents who leave their children in your care.

Only a few of ChurchTrac’s features have been mentioned here. Perhaps the best way to learn more about ChurchTrac is to download it and give it a test run, or to read more about the features on the website. To download, just visit our website, www.churchtrac.com and click on the Download Now button.

I had a very pleasant experience recently with the great people over at Icon Systems (the creators of IconCMO church management software). I had the opportunity to interview, through Email, some prominent members of their staff as well as the company president, Bill Gifford.

 
Why this Interview is a Must Read for Anyone Dealing with Church Management and Accounting

• It gives you a great overview of one of the most popular church management software programs available: IconCMO.
• It introduces you to the idea of online church management (which is a great way to save money and time).
• It answers (from a licensed Certified Public Accountant) some of the most common questions I get about church accounting: Are there any special accounting standards our church needs to be following? Can my church lose its tax-exempt status? Are my current accounting reports in compliance with non-profit regulations and standards? Is there a church accounting software program that can help me be in compliance with non-profit standards? My church is small, do I need to worry about the accounting standards?

Sit back, relax, and take the time to read this whole interview. It provides the answers to some of the tough questions church leaders and staff face.

What would you tell those who are just starting out a new church, are on a tight budget, and are feeling overwhelmed by all of the administration and accounting tasks that are required for a church to run?

Leverage Volunteers via Technology

Ensure a Return on Investment is Realized

Any Size Church

What is it that separates IconCMO from the other popular packages out there?

Could you send us a screenshot of what you consider to be some of the most useful features in IconCMO? Why is this feature so helpful?

Bill

IconCMO doesn’t require creativity to tell you instantly how much money is in any accounting fund. It has all the required reports for FASB guidelines (and more) to help you make decisions based on your allocated resources.    Balance Sheet for The Building Fund   Change in Net Asset Report, Including All Funds

Gene

To help keep these accounting fund balances accurate, IconCMO has a seamless link between contributions and fund accounting. When donations are posted, IconCMO will map the money directly into the appropriate accounting funds, checkbook, and revenue accounts, completely eliminating the need for double entry by the accounting bookkeeper. This link is kept intact even after making corrections to the donation records.

Jay

One big time- and money-saver for many churches is the ability to email donation statements. Rather than printing out paper copies, stuffing and addressing envelopes, and spending money on postage, you can send out donation statements with a few clicks of the mouse, as many times a year as you want!  With our member self-service feature, your congregation can even access their current giving records at any time during the year and email themselves a statement! Churches have reported when implementing this module their donations increased because their members knew exactly how far ahead or behind they are on their pledges.

One feature that I find particularly impressive about Icon’s software is its ability to help churches be in compliance with necessary accounting standards for nonprofit organizations (FASB 95 and 117). Many of the church leaders and staff I have talked with are very confused about these standards. Could you help shed some light on the matter for those of us who are in the dark? Do all churches need to be in compliance with these standards? Are smaller churches exempt? Could you give us a brief summary of the standards? Finally, could you explain to us how IconCMO will help churches be fully compliant with the standards? Church leaders realize it is their own responsibility to be in compliance, but the more information you can share with us here, the better.

A lot of people are considering QuickBooks for the accounting portion of their church technology. From what I’ve read IconCMO can integrate with QuickBooks, is this still correct? What are your thoughts about using QuickBooks for church accounting? IconCMO has an accounting module as well, do you think it’s a good idea for people to integrate with QuickBooks or to simply use IconCMO’s accounting module?

Finally, for those considering switching over to IconCMO, when is the best time of year to make the switch (is there a best time)? How difficult is it to transition from their current church management package to IconCMO?