Receiving Designated Funds after Expense Has Been Paid

[oslc_office]

We paid for a large expense and are raising funds after the fact.

Because the expense has already been paid, can we allocate these donations to an unrestricted income account? Or do we need to put the contributions in a donor-restricted fund? If we must use a donor-restricted fund, how do we release the funds without an invoice / payee? What would the journal entry to release the funds look like?

[NeilZ]

We paid for a large expense and are raising funds after the fact.

Because the expense has already been paid, can we allocate these donations to an unrestricted income account? Or do we need to put the contributions in a donor-restricted fund? If we must use a donor-restricted fund, how do we release the funds without an invoice / payee? What would the journal entry to release the funds look like?

Did the funds come from an unrestricted account, that is, were they paid directly from a checking or savings account that directly closes to the unrestricted net assets account, normally 01-3110-000.

If so, then yes, you can just deposit the funds back into the checking or savings as you would normal tithes & offerings. If you need to track when the expense has been covered, that's a different story. You can create a Contribution Fund that points to the normal income and checking account in Funds Accounting to track that total.

[oslc_office]

Neil, thank you for your reply. The funds used to pay for the large expense were not restricted.

The Contribution Fund you are referring to would be the one our Financial Secretary points to when recording the gift, correct? I am familiar with we set those up.

Thanks again!

[NeilZ]

Neil, thank you for your reply. The funds used to pay for the large expense were not restricted.

The Contribution Fund you are referring to would be the one our Financial Secretary points to when recording the gift, correct? I am familiar with we set those up.

Thanks again!

Yes ... exactly right ... that fund will enable you to track the total without creating any additional accounts in Fund Accounting. The good news is that you can then inactivate that Contribution Fund, but reactivate if needed for a similar purpose.