Combining Donor Restricted Funds

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

Combining Donor Restricted Funds

Postby LizAA » Sat Jan 12, 2019 8:22 pm

Happy new year everyone!
So, I have a couple donor restricted funds, one of which has not been used for a couple years and in fact the purpose of the fund is no longer. We used to collect money for a "International Coffee Ministry"', but the ministry has discontinued, and there's about $200 balance. The elders have agreed and asked me to merge this fund with our "missions" donor restricted fund. Is it possible to do this? If so how would I do that? My concern is that they are both donor restricted accounts with the three associating equity, income and release accounts....

Instead of merging both temp restricted funds, I guess I could use Fund Accounting GE entries to 'release' the money to the "missions" donor restricted fund? Then would I somehow set the "International Coffee Ministry" donor restriction to INACTIVE? How do I do that?

Thanks for your help!
LizAA
 
Posts: 33
Joined: Wed Jan 25, 2017 2:14 pm

Re: Combining Donor Restricted Funds

Postby NeilZ » Sat Jan 12, 2019 9:49 pm

LizAA wrote:Happy new year everyone!
So, I have a couple donor restricted funds, one of which has not been used for a couple years and in fact the purpose of the fund is no longer. We used to collect money for a "International Coffee Ministry"', but the ministry has discontinued, and there's about $200 balance. The elders have agreed and asked me to merge this fund with our "missions" donor restricted fund. Is it possible to do this? If so how would I do that? My concern is that they are both donor restricted accounts with the three associating equity, income and release accounts....

Instead of merging both temp restricted funds, I guess I could use Fund Accounting GE entries to 'release' the money to the "missions" donor restricted fund? Then would I somehow set the "International Coffee Ministry" donor restriction to INACTIVE? How do I do that?

Thanks for your help!


Actually, 'releasing' the funds is not necessary. Just enter a transaction from Funds Accounting.

The transaction should look like this:

01-3220-000 Missions CR 200.00
01-3210-000 Coffee DB 200.00

Enter an explanation of why the funds are being moved in the transaction notes box for audit purposes.
Post this transaction.

Then, go to the Maintain List of Donor Restrictions then delete the restriction. You can then go to the related income and expense accounts, and inactivate them. Finally, inactivate the fund balance account.

This will move the funds, and clear the fund balance. You don't have to inactive the accounts, but to keep them from showing up you can.

Neil Zampella

Using PC+ since 1999.
NeilZ
 
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Location: Connellsville, PA

Re: Combining Donor Restricted Funds

Postby LizAA » Sun Jan 13, 2019 2:52 pm

Ah... less complicated than I thought. I didn't think to do a GE from one equity account to another.

>>Then, go to the Maintain List of Donor Restrictions then delete the restriction. You can then go to the related income and expense accounts,
>>and inactivate them. Finally, inactivate the fund balance account.

So, when I delete the restriction under "Maintain List of Donor Restrictions" it doesn't delete the related income and expense accounts? What does the delete do? And is the fund balance account the 32xx-xxx account? Just trying to understand for the future.


Thanks for your help Neil!!
LizAA
 
Posts: 33
Joined: Wed Jan 25, 2017 2:14 pm

Re: Combining Donor Restricted Funds

Postby NeilZ » Sun Jan 13, 2019 6:31 pm

LizAA wrote:Ah... less complicated than I thought. I didn't think to do a GE from one equity account to another.

>>Then, go to the Maintain List of Donor Restrictions then delete the restriction. You can then go to the related income and expense accounts,
>>and inactivate them. Finally, inactivate the fund balance account.

So, when I delete the restriction under "Maintain List of Donor Restrictions" it doesn't delete the related income and expense accounts? What does the delete do? And is the fund balance account the 32xx-xxx account? Just trying to understand for the future.

Thanks for your help Neil!!


What it does is remove the link in the system that the fund balance account has a restriction, it does not delete any of the accounts. That you have to do through the Maintain the Chart of Accounts. The fund balance accounts (equity/fund balance/net assets) are all defaulted in Powerchurch as the 3000- series of accounts.

Neil Zampella

Using PC+ since 1999.
NeilZ
 
Posts: 8520
Joined: Wed Oct 08, 2003 12:20 am
Location: Connellsville, PA