Non-profit / charity / fund accounting, example help, please

[Dale Alspach]

We do receive restricted funds. They are placed into an asset account
separate from normal operating funds. There is no offsetting liability
though. When somehing arises that qualifies for disbursing from the
restricted funds, then funds are used from that account. (Similar to your
example.) We also internally
restrict the use of the mortgage payments received from our homeowners
until there is a sufficient amount to build a house. The next house is then
one funded by the current homeowners. 

Dale