What Are Financial Types?
In Chabad Suite, every contribution is associated with a financial type, which defines the nature and purpose of the payment. Typical examples of financial types include:
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Donations
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Event fees
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Store payments
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Tuition for preschool or Hebrew school
Financial types are crucial for tracking your organization’s income sources, allowing you to run specific reports and searches based on the type of giving over a targeted time period.
Importance of Financial Types
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Project Reporting: Run searches and reports to see how much was raised or paid for individual projects or in specified timeframes (like a specific month or year).
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Tax Deductible Status: Each financial type is marked as either tax-deductible or non-tax-deductible.
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For example, donations are usually tax-deductible, while event fees and payments are not.
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This affects the type of receipt and messaging donors receive and determines what appears on year-end receipts.
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Receipts & Messaging: The system generates different receipts and messages for tax-deductible vs. non-tax-deductible contributions. Only tax-deductible gifts include the tax ID and specific donor appreciation language.
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Year-End Receipts: Only tax-deductible donations are included when generating year-end tax statements for donors.
Keeping Records Clean
It’s essential to maintain accurate financial type records for every donation and payment. Clean data ensures that:
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Reports and searches deliver correct figures.
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Receipts and end-of-year summaries display accurate tax details.
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Giving statistics reflect genuine donation activity.
Financial Types in Giving Statistics
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Only tax-deductible financial types are included in donor giving statistics by default.
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For example, if a donor gave $1,000 (donation, tax-deductible) and $200 (event fee, non-tax-deductible) in 2024, the giving statistic will show only $1,000 unless you update the settings.
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You can customize which financial types appear in giving statistics as needed for your reporting requirements.