Forgot to release restricted funds!

[Tammy/newlife]

The more I think about this...the more of a mess I think this is. Under donor restricted...we have missions, building fund, food pantry and misc. income. We have plugged along for a couple years and only just recently because of an upcoming missions trip....we have not released restricted funds! We of course used the money and everything went in the correct funds excepts for the releasing of. With months being closed and posted and all...I'm thinking I can't do anything to change it! I'm thinking maybe recent transactions that may have been posted but not in a month that has been closed...there could be a reverse and reenter of some stuff from this year. (right?) I see trying to fix all that will be very time consuming. The last closed month is Feb 2014.

We basically have a general fund and a money market fund. The general fund is the working fund we place contributions and pay out our bills from. We transfer monies from the money market when we need to. Anybody have any thoughts on this mess?

[JohnDMeyers]

My first question is this: Are the donors making these requests, such as building, missions, food pantry, or is the church board making these designations?

One thing that will simplify matters is only use restrictions when the donor makes the request.

Another way to simplify matters is this:

Create a separate Fund Accounting fund for missions. Everything in that fund is deemed to be restricted, so you don't have to use Powerchurch's restriction mechanism for anything in that entire fund.

Do the same for building. Create a building fund where everything in that fund is only to be used for building. Then, you don't have to use the PowerChurch restriction mechanism.

[JohnDMeyers]

Secondly, to deal with your previously restricted items.

You can make a manual release transaction. It looks like this:
DB 01-4810-000 Food Pantry release $50.00 <-- this one, the account number will change per restriction
CR 01-4999-000 General release $50.00 <-- this one, the account number is always 4999 (or whatever your number is for general release)

What will look funny is what this will do to your Income and Expense report for this year only. Once you close 2014, things should look ok, again.

[Tammy/newlife]

ok, thanks! This will help...the 2nd answer will fix the initial problem. And yes, we will have a member specify on their tithe check a particular amt. for missions, etc. But the idea of creating a separate fund may be a good way to go. We have more going out as far as what our church has committed to various missions and naturally that comes out of the general budget. It would be a small amount designated periodically.