Are members prohibited from contributing to local unit budget accounts?

Obviously the donation form online does not include an option for the member to donate directly to the local unit budget, but the LCR donation form on the clerks’ end for processing checks does allow you to select a unit budget account.

I read another message reply in this forum that stated members’ can’t donate to ward budgets. Clearly, the system allows you to, but 1) is there a policy that prohibits it, and 2) if a member were to donate to a local unit budget account, would it be included in their annual statement of donations for tax purposes?

Procedures and policies might have changed since I was a finance clerk, but at that time basically the only allowed deposits to a budget category were for repayment of an advance from that category. For example, if a large activity were planned and a check issued to a member in advance to purchase the needed quantity of food, decorations, or etc., and the items went on sale or the member found a better price so that not all the advanced money was spent, the member would give the excess money back to the unit. Of course, in that kind of situation, it would not be considered a donation for tax purposes.

There are currently 3 exceptions to the prohibition on 'donations' to budget:

1. Return of unused advanced funds (as rmrichesjr already said).
2. Return of security deposits or refunds from previous expenses.
3. Payments for youth camps.

Donations to help pay for other activities or other budget expenses are not allowed (see General Handbook section 34.6.2.2). Any amounts deposited into a budget category will not be included as donations on the annual tax statement.

eblood66 wrote: Sun Mar 03, 2024 12:38 pm Donations to help pay for other activities or other budget expenses are not allowed (see General Handbook section 34.6.2.2).

Additional guidance regarding funding activities can be found in General Handbook, 20.6.1. This supports section 34.6.2.2.

Going back to the OP regarding the ability in LCR to make deposits in unit budget categories puts the burden on those with finance edit permissions to be familiar with the General Handbook and to not follow past traditions. The online donations app will not allow donations to budget categories to avoid erroneous budget category donations. The LCR ability to make deposits into budget categories is to provide for the exceptions noted by eblood66. Those exceptions require the use of a paper Tithing and Other Offerings form.

Just wondering - does the audit process identify any potentially incorrect budget donations, or are the unit leaders the only possibility for catching an improper budget donation?

There are no audit questions which address this. As stake financial clerk it is one of the things I look for when I review the monthly finance statements.