CHARITY ACCOUNTING PROBLEMS

[Seacook]

Hello,
I am not an accountant but I have been pushed, kicking and screaming, 
into the position of Treasurer in a small, very successful charity. Much 
of the charity's success is due to the transparent way in which we 
administer donated funds through dedicated donor accounts and how they 
are then credited to specific beneficiary accounts. These accounts, some 
180 of them, are of necessity 'virtual' but are crucial to accurate 
allocation of funds for beneficiary expenses which are overwhelmingly 
paid to suppliers, often in cash, rather than directly to the 
beneficiaries themselves.  For example, we pay school costs directly to 
the schools.

Donations and payments are identifiable either by invoice or receipt 
numbers.

Is there any simple way to incorporate these accounts without creating 
an imbalance and to track the movement of funds into and out of the 
virtual accounts and then to translate these into actual income and 
expenditure through the charity's bank without complicating the 
reconciliation of the bank account with a number of balancing virtual 
transactions?

Philip Allum
Kelab Amal Langkawi