Temp Restricted Funds - Necessary? Or Not?

[Divine Word Lutheran]

I set up 11.5 on September 1 and the month is still open, so I can make changes. We are not a huge church and have a small (2 person) number of people that can cut checks. As such, we are not REALLY worried that money will be spent out of the Choir Fund or the Memorial Fund etc. But, we do want to track them.

I set all the miscellaneous funds up as temporary restricted funds, so they have release accounts. I am now thinking that I created a monster.

Do we REALLY need Temp Restricted funds, or do you think we should just change now and make all the funds unrestricted before we get any more months behind us?

Is there some other functionality that is really needed that I will miss out on when I go to Unrestricted and delete the Temp?

Thanks.
Dean Curtis - Volunteer IT guy, Accountant, and Chief of Sinners

[NeilZ]

I set up 11.5 on September 1 and the month is still open, so I can make changes. We are not a huge church and have a small (2 person) number of people that can cut checks. As such, we are not REALLY worried that money will be spent out of the Choir Fund or the Memorial Fund etc. But, we do want to track them.

I set all the miscellaneous funds up as temporary restricted funds, so they have release accounts. I am now thinking that I created a monster.

Do we REALLY need Temp Restricted funds, or do you think we should just change now and make all the funds unrestricted before we get any more months behind us?

Is there some other functionality that is really needed that I will miss out on when I go to Unrestricted and delete the Temp?

Thanks.
Dean Curtis - Volunteer IT guy, Accountant, and Chief of Sinners

Here's a question ... are these funds only supposed to be used for certain things; as you say the 'choir fund', to only be use for choir spending? And do people give to the choir fund expect that only the choir will be spent on? If so, then you really should restrict the funds as you have them, otherwise they would then be reflected in as funds in the general fund available for use.

[Divine Word Lutheran]

Yes, they are only supposed to be used for what they are given for. I agree that is the purpose of Temporary Restricted Funds. I guess my point is that our small group would not accidentally spend anything in that fund for something else. Conversely, this same small group of bookkeepers are having trouble remembering to click on the release restricted funds, and it also seems to busy up the reports.

[NeilZ]

Yes, they are only supposed to be used for what they are given for. I agree that is the purpose of Temporary Restricted Funds. I guess my point is that our small group would not accidentally spend anything in that fund for something else. Conversely, this same small group of bookkeepers are having trouble remembering to click on the release restricted funds, and it also seems to busy up the reports.

There are pros and cons. The pros, you can track what is in the restricted accounts much easier as it is a separate item in the reports, the cons, it does take some training and discipline to remember to click on the release button.

My thinking is that the 'same small group' may not be the same small group in 4 or 5 years. Having the restriction built-in the system, provides continuity through any changes in personnel or volunteers.

[Divine Word Lutheran]

Thank you.