Handling Gift Cards your Group Receives
Here is what some groups do to manage gift cards they receive for their organizational use:
- Go to Banking.
- Click Add Bank Account.
- Name the bank account (ie Grocery Store Gift Card).
- Set a $0 starting balance.
- When you receive the actual gift card, record a deposit into the bank account for the value of the gift card. You could allocate this deposit to “Donations” or whatever you feel is appropriate.
Note: Do not set the starting balance of the bank account to the amount you are receiving. That would throw off your Funds Available at Start of Year which we need to avoid. These need to be recorded as deposits.
As you use up the credit or spend money on that card, record these transactions as withdrawals against that bank account up to the value of the gift card.
Note: This method will increase both your income and expenses, which reflects reality.