Non-member Donation

Is it permissible for non-members to donate to the "Budget - Cub Scout" category? If not, what could be done if it has already been processed several months ago?

In our situation, a nonmember is very involved in Cub Scouts, and he donated some money to purchase some equipment. It was recorded with the tithing and other offerings as a deposit to this Cub Scout category. If you have any clarifying questions, please ask away!

kylems wrote:Is it permissible for non-members to donate to the "Budget - Cub Scout" category?

Sure. I see no problem with it. Just create a non-member donor record to go along with it.

My understanding is that "Budget" is only to be used to return unused advanced funds. No one is allowed to donate to Budget.

It is OK to donate to "Other" but there's no tax write-off and still may not be within the guidelines.

I think I understand the intent, I just don't know how to handle it.

crislapi wrote:Sure. I see no problem with it. Just create a non-member donor record to go along with it.

Well, I guess it might be ok until he is baptized. Just don't let the members find out about it. They can't donate like that. [grin]

RussellHltn wrote:My understanding is that "Budget" is only to be used to return unused advanced funds. No one is allowed to donate to Budget.

It is OK to donate to "Other" but there's no tax write-off and still may not be within the guidelines.

I think I understand the intent, I just don't know how to handle it.

I guess I was thinking along the lines of a fundraiser. Say the Cub Scouts did a fundraiser to buy the equipment themselves. How would you handle the money they collected? Would that have to go in other instead of budget? I was assuming it could go in budget. I see this as being a similar situation.

Although it doesn't directly address this issue, I rememberthis post about the other account vs. budget account using scouts as an example.

crislapi wrote:I guess I was thinking along the lines of a fundraiser. Say the Cub Scouts did a fundraiser to buy the equipment themselves. How would you handle the money they collected?

It would go to Other, and then the Other account would be used to purchase the equipment. But, as Russell said, it would not be recorded in MLS as a charitable contribution.

The non-member is probably wanting to contribute to the Cub Scouts as a charitable contribution. This is difficult to do because of the way the Church handles funding for Scouts.

If the donor does not care about the IRS deduction, just put it in Other and spend it on the equipment.

Are there not restrictions on the use of "Other" funds for Cub Scouts and Boy Scouts? I am aware of allowable exceptions to support a single camp per year per scout, and some dedicated "Other" accounts for specific Eagle projects, but I didn't think general-purpose contributions by members or non-members were allowed.

It seems to me that many posts in this thread are completely ignoring the policy regarding the Budget Allowance and the Other category. The donation in question is well-intentioned and generous, but as I read the policy, it is not allowed. As was mentioned by RussellHltn, donations to the Budget category are absolutely not allowed; deposits are allowed to the Budget category only for refunds of advances or payments by other units for their share of a budget expense.

As for the Other category, it is to be used for collecting funds for a specific purpose where the person paying the funds receives the benefit. From the lesson Understanding and Using the "Other" Category:

Most contributions to the “Other” category are not donations to the Church; rather they are payments for a tangible benefit. For this reason they are not considered charitable contributions and will not be included on the year-end tax-valid statement.

The CHI p. 159 says "Stake or ward budget allowance funds should be used to pay for all Church activities, programs, and supplies. Members should not pay fees to participate (exceptions may be made for annual camps or enrichment activities as explained on page 160)."


I summarize from p. 160: In the case of the cost of one annual camp or associated equipment, such expenses are to be paid from:

1. The Budget Allowance;
2. If that is insufficient, participants may earn part or all of the cost;
3. If that is insufficient, approved fund-raising activities may be held.

These fund-raising activities do not consist of soliciting donations. Any funds raised in approved ways may not be used to fund any other activities besides the annual camp. There is no provision for receiving donations (even unsolicited) from anyone for any activities, including Cub Scouts.

So back to the original question: based on the above policy statements, my opinion is that the proper course of action is to return the donation to the donor, since it never should have been received in the first place. This would be done by writing a check from Budget, which unfortunately now will hit the 2009 budget allowance, but that detail can be worked out with the stake.

What Alan explained is right on target.

Ten years ago I ran into a very similar situation. The donor, a non-member, was insistent on donating money to purchase troop equipment. We told him that if he made a donation it would go to the Church and not the troop and the equipment he wanted to have purchased would not happen. After the Church's policies were explained to him he understood. But about a month later the equipment he wanted the donation to be spent on just appeared on the ward meetinghouse doorstep with a note identifying the equipment to be used by the troop. No name or further information was provided.

It is hard many times to convince well intentioned non-members, and even some members, that the Church policies and procedures are in place to provide as much equality and fairness as possible to all Church units and Church sponsored programs such as the Scouting program.

kylems wrote:Is it permissible for non-members to donate to the "Budget - Cub Scout" category? If not, what could be done if it has already been processed several months ago?

In our situation, a nonmember is very involved in Cub Scouts, and he donated some money to purchase some equipment. It was recorded with the tithing and other offerings as a deposit to this Cub Scout category. If you have any clarifying questions, please ask away!

I believe Alan has described the best solution to your question. The link below takes you to a summary of Donation and Receipting Categories...sometimes it is useful to review these instructions amid all the other things we must try to remember as clerks. Pay particular attention to the section explaining Budget. Hope this helps clarify things a bit.

http://www.lds.org/ldsorg/v/index.jsp?v ... &hideNav=1

Allow me to throw one more variable into the mix. His son is in Cub Scouts. Could his donation go through the Other account with the understanding that it is no longer charitable? Does his son being in Cub Scouts qualify the expense as his receiving the donation's benefit?

kylems wrote:Allow me to throw one more variable into the mix. His son is in Cub Scouts. Could his donation go through the Other account with the understanding that it is no longer charitable? Does his son being in Cub Scouts qualify the expense as his receiving the donation's benefit?

That is not the problem in this case. The problem is that the "Other" accounts are not supposed to be used for general support of Cub Scouts, which with the narrow exception of a single annual day camp are supposed to be funded entirely out of Budget funds. This is true even if non-members participate in the scout unit. There is no way for anyone to contribute for general equipment purposes, whether they are a member or not, and whether their child participates or not.

kylems wrote:Could his donation go through the Other account with the understanding that it is no longer charitable?

Small clarification... Donations to the budget are not considered charitable by the church either.

boomerbubba wrote:Are there not restrictions on the use of "Other" funds for Cub Scouts and Boy Scouts? I am aware of allowable exceptions to support a single camp per year per scout, and some dedicated "Other" accounts for specific Eagle projects, but I didn't think general-purpose contributions by members or non-members were allowed.

The only thing you can collect for in Other is the one annual camp and /or group equipment associated with these camps. Eagle projects, scout awards, etc., are all funded from the budget allowance.

LSS wrote:The only thing you can collect for in Other is the one annual camp and /or group equipment associated with these camps. Eagle projects, scout awards, etc., are all funded from the budget allowance.

I would clarify that this statement only makes sense in the context of Scouting. Of course you can still collect funds in the Other account for things such as RS Enrichment activities, Church magazine subscriptions, and temple dinners.

Alan_Brown wrote:I would clarify that this statement only makes sense in the context of Scouting. Of course you can still collect funds in the Other account for things such as RS Enrichment activities, Church magazine subscriptions, and temple dinners.

Yes, again, I should have clarified "in the event of surplus funds in the scout account, cub day camp and/or girls camp". Again, I am sorry. Brother Brown, can you tell it is time for me to go home? I'll try to be more thorough. Have a good night.

LSS wrote:The only thing you can collect for in Other is the one annual camp and /or group equipment associated with these camps. Eagle projects, scout awards, etc., are all funded from the budget allowance.

Doesn't the nature of the Eagle project make a difference here? It is not unusual for such projects to entail capital formation. For example, if the definition of the project is to raise funds and accomplish some external good works such as constructing a picnic table in a park, those are really pass-through funds that might be allowable in Other even if it were not a scout function. Or the Eagle project itself might produce a store of gear, first-aid equipment, etc. that would be associated with future camps for the troop, and thus according to your own comments would be allowable uses of Other camp funds in their own right.