Skip to main content

Church Management Software Alternatives

Question:
Many churches adopted online giving and donor management in the early days of Covid-19. Some churches were forced to make a quick decision, while others have not revisited their donor management tool for some time. What options are available for churches seeking to establish or change their donor management software?

Answer:
There are many options available, each having its strengths and weaknesses. It is important that the specific needs of the church are considered when deciding which software to use. It is also important that the software is not only selected to meet those needs, but that it also falls reasonably within the church's budget. The church should not be paying for additional features it will not use. A couple of our team members at MinistryCPA serve at their local churches and have become familiar with the following products. Stephanie and Tim have provided a brief listing of those alternatives below, including their features and advantages.

  • Membership database
    • Track birthdays, anniversaries, and attendance.
  • Donor Management
    • Intuitive for recording donor contributions
    • Generate contribution statements 
    • Data entry is straightforward and easy to use
  • Reports are easily customizable
  • Capability of uploading and integrating feeds into QuickBooks (including specific general ledger account #'s for donor designations and general tithes and offerings)
  • Works alongside online donor giving platforms to pull data directly into software and QuickBooks Online
    • ServantKeeper is not an online giving platform itself
  • Customer Service representatives are very helpful and friendly
  • Cost depends on size of church and features needed
  • Membership database
    • Track birthdays, anniversaries, and attendance.
    • Create directories and church calendar
    • Send batch emails to congregation
  • Donor Management
    • Record and track donor contributions
    • Generate contribution statements 
    • Includes Churchtrac online giving platform
  • Easily generate reports and statements
  • Offers its own accounting software that integrates with donor management
  • Cost depends on size of church and features needed
One tool we have found helpful in comparing donor management software is a chart created by MBS, Inc. The chart compares the various accounting, non-accounting, and infrastructure features of 35 different church management software providers. The MBS, Inc. website provides the chart and contact information for each of the software providers. A more readable PDF of the MBS chart can also be found on our website at https://www.ministry.cpa/resources/other


Comments

Popular posts from this blog

Rental of a Church Parsonage to a Non-Minister

Question: A church owns a parsonage, but the pastor does not use it as he owns his own home. The church rents the parsonage to a tenant other than a minister or employee of the church. Will the church be responsible for paying income tax on these monies as Unrelated Business Income (filing a Form 990-T) even if the money is used to carry on the business of the church? Answer: Whether the money is used for church purposes is irrelevant.  IRS Publication 598  states: "If an exempt organization regularly carries on a trade or business not substantially related to its exempt purpose, except that it provides funds to carry out that purpose, the organization is subject to tax on its income from that unrelated trade or business." Fortunately, in the case of rental income from real property, such income is "excluded in computing unrelated business taxable income" (Publication 598). Caution: see content below regarding debt-financed property.  However, a second concern not a...

Review: Form 1099 Payments to 501(c)(3) Organizations

Question: A church rented space from another church last year. Should it request a completed Form W-9 and issue Form 1099-MISC? Answer: Payments from one 501(c)(3) organization to another 501(c)(3) organization are not subject to Form 1099-MISC reporting. The IRS Instructions for Form 1099-MISC state that "payments to a tax-exempt organization" are exempt from reporting a Form 1099-MISC.  The following are typical examples of payments of $600 or more by a church which are subject to reporting a Form 1099-MISC: Rent paid to an individual (non-corporation) Payments for services rendered by individuals who are not employees (e.g. janitorial service, facilities, snow removal, guest speakers) Support sent directly to missionaries

Housing Allowance and Form 1099-MISC Reporting

Question: A church provides its minister a housing allowance but believes it must report the full amount of compensation (including the non-taxable housing allowance portion) on Form 1099-MISC in order to demonstrate the full earnings of the minister. (Starting in 2020, Form 1099-MISC is replaced with Form 1099-NEC for non-employee compensation.) If the church reports his compensation, including the housing allowance, on the Form 1099-NEC as taxable income, will he be able to deduct his housing expenses somewhere else on the Form 1040? Answer: This question brings up a couple of issues. First, most ministers are properly classified as employees who receive Form W-2 , not as independent contractors who receive Form 1099-NEC . Box 1 on Form W-2 reports taxable compensation. It is reduced to reflect the church's designation of a portion of his pay as non-taxable housing. Then, in Box 14 (Other), Form W-2 typically reports as a memorandum item his additional non-taxable, housing allowa...