[GNC] Tracking designated balances in the total checking account balance?

Michael or Penny Novack stepbystepfarm at comcast.net
Thu Jan 9 09:29:35 EST 2020


I should perhaps add that although there are many methods possible, you 
perhaps might want to rethink explicitly partitioning the checking 
account << doing that for funds kept in the savings account a different 
matter >>

Money is fungible. It isn't specifically money in the checking account 
that is restricted but organizational money, and the restriction means 
that amount must be used for the specific purpose. The "liability" 
method I described is making it clear that "this money is owed to the 
donors" but how is this really different from a member making a loan to 
the organization?

In other words, for cash flow purposes, for determining if a check can 
be written without bouncing, those funds are IN the checking account. 
They can (at least temporarily) be used for something else. And if so 
used not NECESSARILY needing to be replaced. Remember, restriction is at 
the will of the donor. Can always ask a donor or donors to release the 
restriction.

Michael D Novack



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