Beginner with Questions

[Mike or Penny Novack]

>I'm a Scout Leader for a Cub Scout pack, and I'm hoping that GnuCash will
>be a useful way to track our Pack's Finances.
>
>.......
>
>However, I have absolutely NO accounting background at all.
>  
>
.........

>If it were simply a matter of tracking income, expenses and money in the
>account, it wouldn't be a big deal, but We've thrown an additional monkey
>wrench in the works, by setting up what we call "Scout Accounts"
>
>For Any boys that exceed the per/scout goal for our annual fundraiser, We
>give them a portion of the money set aside into their "Scout Account" The
>Money still stays with the pack, but can be used by that scout's family to
>pay for camping trips, etc.
>
>I'm not sure what would be the best way to set something like this up. I'm
>thinking that if I set up each Scout's Family as a "Customer", And have the
>Scout Accounts setup as Liabilities that would work, but I'm not sure if
>that is the best way to track things.
>
OK, I am the treasurer of some non-profit organizations and this is a 
fairly familiar situation.

The money is still the pack's, just restricted as to purpose. Just like 
when a non-profit receives donations where the donor specifies "and only 
be used for ...".

Under your bank account create a child account for "scout accounts" and 
under this individual accounts for each scout that has one. The total 
for bank account will still match what the bank statement has. You 
presumably now have an income account to track money raised from 
fundraisers. Well add one for "restricted income" (can only be used for 
some scout's expenses for these camping trips, etc.).

money coming in (from fundraisers) --- split between general income and 
restricted income and unrestricted bank account and scout account.
money going out (for qualified scout expense) -- again split transaction 
(like a double transaction) paying the amount of the scout account AND 
transferring out of restricted income (releasing the restriction as was 
used for the specified purpose (paying for THIS scout's expense).

The last might sound more complicated than it is because many 
organizations would go back and do that just once a year for the total 
of the expenses in the restricted category. But in your case tracking 
individual scout accounts I suggest doing it as you go along.

A final point --- what software you use isn't really the problem. 
"However, I have absolutely NO accounting background at all" is. A 
bookkeeping 101 book followed by a "bookkeeping for a non-profit" would 
help. In almost no case will any software package, even one you pay for, 
hold your hand through this more or less specialized process. Before a 
house fire one organization had an expensive commercial product 
SUPPOSEDLY the "non-profit version". It had just about none of the 
special features covering the differences between non-profits and 
ordinary businesses (so we did not replace it even though insurance 
would have reimbursed; went with gnucash).

Michael