General Fund and Subaccount Procedures

by Leroy Hughes
(Fairhope, Al)

Is it legal and/or ethical to deposit money taken in as a "general tithe" to be placed in a subaccount of the church designated for example: Kitchen Fund, even though the money is not designated for that fund. Also, can the Kitchen fund be used to pay other expenses other than designated "kitchen" expenses?

Answer

Yes. It is legal and acceptable to transfer funds from the General fund into any other fund because the funds are not donor-restricted.

Now if someone gives a donation...for example...a new church sign...it is not ethical to take those donor-restricted funds and use it...for example...kitchen expenses.

Hope this helps,




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