Reimbursements: If the donor has a receipt, you write a check to him/her as though you were writing it to the vendor who supplied the goods, i.e., you use the same expense account as you would if paying the vendor directly.
If the member wants to donate the purchase to the church, the cleanest way to handle it is to write the check to the member and let the member donate the check back to the church (or deposit it and write his own check in the same amount to the church).
In-Kind Donations: If the Joneses give a bunch of spaghetti and French bread for the Spaghetti Supper and don't want to go through the hassle described above, then you will need the following:
| An asset with a name like "Non-Capital In-Kind Donations" |
| A fund by the same name, pointing to the above asset |
| An Income Account with a name like "Receipted In-Kind Donations", pointing to the above fund. |
You use the Offering Process to make an entry to the Joneses for the amount of the purchases, using the "Receipted In-Kind Donations" income account, and Journal Entry for the How Given.
Then you will have to create an Expense Journal Entry to "purchase" the goods given, using an Expense Account like "Recording Receipted Purchases" which points to the Non-Capital fund, above. This is to zero out that fund and asset.