Restricted Funds

(TN)

Over the past 2 years, we have held several benefit/silent auction signings to raise money for a "Van Fund" at our church.

These monies were donated & raised for this specific purpose and placed in a Van Fund in the church finance report.

Now, some are wanting to use these funds for other purposes. My opinion is that these are "Restricted Funds" and cannot be used for anything other than what people donated or gave specifically for (which was church van). Is this correct?

Thanks for any input.

Comments for Restricted Funds

Click here to add your own comments

Suspicious activity
by: Anonymous

If the church closes, what happens to these designated funds. Should money be divided amongst the singing groups and individual singers that donated their time and talents to assist in this fundraiser.

It seems there is already some misappropriation of money taking place, that's why there is such division and church attendance has dropped.

Small group in charge of money but don't want to report itemized expenditures to members.

Restricted Funds
by: Anonymous - MN

I would agree with your assessment that these funds would be restricted. If you have an immediate need for funds, you might consider 'borrowing' from those designated funds as long as you also make commitments to make payments and return those funds to be used for their intended purpose.

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 Church Accounting FAQs.