For NTS versions 4.20 and above, the way income is calculated on the Annual Report and Allocation Reports has changed. Income for these reports is based on the new criteria specified by the General Church. To see what is considered income by the General Church, please review the Funding the Mission - Definition of Income document provided by the General Church. As a general rule, all tax deductible contributions received by the church are considered income for Allocations. Money recieved by the church that is not tax deductible is not considered income for Allocations or the Annual Report.
Based on the criteria from the General Church, NTS uses Contribution entries to calculate income for the Allocation and Annual Reports. NTS does NOT use deposits to calculate income for the Annual and Allocation reports as deposits do not provide sufficient information to determine if the money deposited is income.
NTS adds up tax deductible contributions posted in the Contributions module of NTS. Starting in version 5.50, NTS will exclude from income any contributions marked as Rare Circumstance Exemptions. The Annual and Allocation reports will show $0.00 income if nothing is posted in Contributions. If you do not use the contributions section of the software, you can post total income in contributions as opposed to posting individual contributions.
It is not necessary to post rent money, in/out money or other "non-income" into the Contributions side of the program. However, it is certainly acceptable to post these types of transactions into Contributions. Within Contributions, each fund can be designated as a tax deductible fund or as a non-tax deductible fund. When posting non-income money to contributions, it needs to be posted to a non-deductible fund. Posting money to a non-deductible fund will prevent the money from appearing as income on the Annual and Allocation reports. To see how the funds are setup or to change the setup on a contribution fund, please see Contribution Funds Setup.
On the Allocation Report, the total of all tax deductible money, including Faith Promise, 10% mission specials, etc, is reported as the Gross Income at the top of the report. To see all the funds included in the Gross Income, click the button next to the gross income. The Annual Report will show the same income total.
Income is calculated by adding deposits, interest, and income adjustments. All deposits except for Expense Credit (EC) deposits are included in the total. Negative income adjustments reduce total income.