[GNC] Using GnuCash with charity restricted and unrestricted funds, advice wanted

[Adrien Monteleone]

This is a perfect example of why this list is not the place for 
accounting advice.

We can't answer, "What should I do?"

You have to know that first, then ask, "How do I accomplish this using 
GnuCash?"

In many cases, the answer is, "The same way you'd do so with Pen & 
Paper." (sans the actual pen and paper of course)

At best, folks here can offer generalizations. Exact implementation 
absolutely *must* be done in consultation with local professionals 
versed in the laws of your jurisdiction if your issue is anything but 
mere personal musings, and in any case where you have any official duty 
or legal obligation.

Regards,
Adrien

On 5/26/24 12:37 PM, Michael Hendry wrote:
> I was keen to keep track of restricted funds within GC in a way which would make unspent restricted income persist as restricted funds beyond the year end, and you suggested the use of a Liability account for this purpose,
> 
> Unfortunately, the accountant who examines our accounts before submission to OSCR (the Scottish Charities Regulator) advised that this isn’t an acceptable way to handle restricted funds in the UK.
> 
> The problem with using the income accounts (as below) for the various types of Income, is that the money not spent (in our case on bursaries for musicians who wouldn’t otherwise be able to attend our courses) doesn’t persist in the that account after the year end the way a liability would. A collection at the final-day concert which is advertised as being destined for use as bursaries won’t be spent until the next year’s course.
> 
> On the other hand, if income received for restricted donations is accounted for in this way, and funds paid out as bursaries are also accounted for in a separate expense account it should be easy enough to keep a year-on-year tally of the remaining restricted funds. In practice, we probably spend more than we receive on bursaries each year, but a church roof might be a longer-term job.