Designated monies reimbursing budget?
Our church spent 2000.00 in January 2010 from budgeted funds.
In August 2010, a donor contributes 2,000.00 designated for worship.
Does this mean the worship budget now has and additional 2000.00 as of August 2010 or can that money be used to reimburse the January 2010 expenditures?
The long and short of the question. If a donor gives designated money for general account already in the budget, is the budget now increased to reflect the gift or does the gift reimburse the budgeted amount? Does the time of expense incurred and funds received influence the accounting practice? Know the answer? Face the same situation? Please post your answer or comment by using the "comment" link below. Thank you!