Adding or Editing Categories
Click on the "Add or Edit Categories" button on the toolbar to create new giving categories or to edit existing ones. This will open the "Add or Edit Categories" dialog box.
To add a new giving category, enter the name into the "New Category Name" field and click "Add." Then select the tax deductible status for contributions assigned to that category. This will show up as the default on the Contributions Entry screen each time the category is selected; however, it can be changed as needed when each contribution is entered.
Important tax rule: Any "contribution" in which the contributor receives something in return should not be marked as tax deductible. For example, if a person "purchases" a t-shirt, church dinner, or pays for their child to attend youth camp, the deductible box should be unchecked because the IRS does not consider these items to be contributions for tax purposes. If a person donates $1000.00 to be used toward youth camp and receives nothing in return for this contribution, then that contribution would be considered deductible. If you have any questions regarding the deductibility of contributions, you should ask an accountant or tax specialist.