MUST HAVE REFERENCE GUIDE

Site Map or Site Search

CHURCH ACCOUNTING PACKAGE

Accounting for Contributions earmarked for a specific project

by Gordon
(Santiago, Chile)

With regards to the Main Question above, should such earmarked contributions be taken to Income or would it be acceptable to treat it as a Special Fund Account either under Liabilities, as related expenses will be charged to this Fund account, or could it also be taken to Equity?

Comments for Accounting for Contributions earmarked for a specific project

Click here to add your own comments

Apr 24, 2021
 Accounting and Tracking Restricted Donations
by: Vickey

I have seen people account for "restricted" donations and special projects using equity and liability accounts...but I don't personally care for that method.

I like to use the "donor" field in QBO Plus to "tag" all income and expenses related to those special projects or restrictions. If it is something that is going to be carried on regularly, I will consider setting up a class for it...but it just depends on the client or situation.

If it is something that is going to span over a year and I need a "balance" to roll over....I will combine using an equity account...but I never use an equity account alone to record those donations and expenses related to a special project.

I only specialize in one other software and that is Aplos. I use the tag feature to track it in that software sometimes combined with a fund...if I need to track it over multiple years.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Accounting.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)



Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.