Temporarily Restricted Funds

[Pam]

I am trying to settle a question in my mind regarding temporarily restricted funds:

My thinking is that this fund should only be used for receipt of contributions/donations to help cover expenses for student camp, benevolence, building fund, etc.

SO, if someone contributes for Student Camp, it would be placed here.

HOWEVER, if a student pays for their camp trip in advance, I would credit that money to the expense line item for Student Camp as this would be considered an expense reimbursement.

Am I thinking correctly?

Thanks!

[NeilZ]

I am trying to settle a question in my mind regarding temporarily restricted funds:

My thinking is that this fund should only be used for receipt of contributions/donations to help cover expenses for student camp, benevolence, building fund, etc.

SO, if someone contributes for Student Camp, it would be placed here.

HOWEVER, if a student pays for their camp trip in advance, I would credit that money to the expense line item for Student Camp as this would be considered an expense reimbursement.

Am I thinking correctly?

Thanks!

This article may help:

http://www.powerchurch.com/tech2/tech2_ ... ssue_id=41

[wms7328]

One way I treat these funds is to set up a separate accounting fund that I use as a pass through fund for items that church pays for but are reimbursed by members. Things like camps, event tickets and special offerings. You can post the reimbursed income and donations that are given for that purpose to this account and then balance that against the expense for whatever event is being handled. This way you can easily see with income/expense report if your income and expenses balance. I use this fund for all pass through money for the year. At the end of the year, I balance the income and expenses by posting either income or expenses back to regular church fund. Usually I have a few hundred dollars at the end of the year to balance out.

I use temporary restircted funds for items where people specify a regular budgeted item on their donation For example, we have some that give to our youth programs which are regular part of church budget.

This way you keep pass through items from being included as operating income and expenses which may bias the results from year to year.