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

[Edward Bainton]

How about this:

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

Think of funds accounting as different colours of money. Every account and
every category can include any colour of money.

I need the gross figure for each account and category, the figure for each
account and category broken out into the colours of money that it’s
comprised of, and I need to report on the overall financial position and
movements in any given period of each colour of money, detailing which
accounts and categories it’s comprised of.

How do I accomplish this using GnuCash?



On Mon, 27 May 2024 at 05:22, Adrien Monteleone <
adrien.monteleone at lusfiber.net> wrote:

> 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.
>
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