Recognizing Income from an Unrestricted Gift
My church received an unrestricted special gift. Is it okay for 20% of the gift to be recognized as unrestricted income in the general fund and the remainder to be recognized as a receipt in a dedicated account? Or, should the full amount be recognized as unrestricted in the general fund and there be a transfer to the dedicated account?
If it was an unrestricted gift, then the church’s governing body can put it to use anywhere it is needed. You would not be required to record in the general fund first and then transferred out unless the governing body just wanted it recorded that way.
Hope this helps,
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