Chart of Accounts- How to...

[Ms. Salem]

My question is:
When you create a contribution fund, do you have to create asset, liability, income, and also expense accounts in the chart of accounts to match each time?

[Jeff]

I think you might be equating a contribution fund and an accounting fund. They are 2 different things. A contribution fund is the cause or the thing someone is giving to. An accounting fund is an accounting entity that is a self contained chart of accounts. Each accounting fund will have its own assets, liabilities, equity, income, and expenses.

A contribution fund typically credits an income account in an accounting for the money that was received for that cause. You can have several contribution funds pointing to accounts in the same accounting fund. There might be times that you need to setup a new accounting fund and a new contribution for a project that you are starting.