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Blog | Product Updates

How to Use Restricted Funds

Posted by Peter Frank on Sep 3, 2014 9:00:00 AM
When offerings are given for specific purposes, it is required that these dollars are spent for that purpose only. In order to properly track these gifts and prevent them from accidentally being spent, they should be tracked separately in your Chart of Accounts.

One way to separate these funds is to create a separate account, but that should only be done if these offerings are deposited into a separate bank account. If these offerings are deposited into a general bank account, they can be separated through the use of Restricted Funds.

Restricted Funds are subsets of Asset accounts. They are not separate accounts because the actual money sits in a bank account, but it is indicated that they are restricted. When Restricted Funds are created, an Unrestricted Fund is also created to account for funds that are available for general purposes.

Create a Restricted Account

  1. Go to Settings --> Accounts.
  2. Choose the Asset account for which you want to add a Restricted Fund.
  3. Click on "New Restricted Fund."
  4. Enter a name (i.e. Organ Fund, Missions, etc.).
  5. Click "Submit" to save.
  6. Once you click "Submit," your original Asset Account will become a Category, and you will now have two accounts: Unrestricted and the name of your new Restricted Account.
  7. Save your Chart of Accounts.

Add money to the Restricted Account

  1. Click on "New Transactions" and click "Transfer."
  2. Select the Bank Account (Unrestricted) and your new Restricted Fund.
  3. Enter the Amount for the Transfer and click "Save."

Church360 Ledger Restricted Accounts

 

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Peter Frank

Peter Frank serves at Concordia Publishing House as a Senior Marketing Manager for Church Supplies, including Concordia Technology Solutions (CTS), the church management software division. A graduate of Concordia University Wisconsin, his background in theology, business, and computers gives him a unique perspective on technology in the church. Married and the father of two children, he is frequently humbled when his young children teach him something new about technology.