New fund or new account?

[CACFla]

I am trying to set up the new software to handle various types of contributions.

For instance, if someone contributes $100 and has allotted it as follows: $50 for General, $25 for Benevolent and $25 to overseas missions.

We have a separate checking account for the Benevolent fund, but it will be initially deposited into our main checking. At the end of each month I do an AP entry and generate a check to transfer the funds over to the benevolent checking, and for the overseas missions I generate an AP entry and draft a check out of the main checking.

What I am trying to understand is whether I need to use restricted accounts or contribution funds, or something else entirely to be able to track these different contributions.

[NeilZ]

I am trying to set up the new software to handle various types of contributions.

For instance, if someone contributes $100 and has allotted it as follows: $50 for General, $25 for Benevolent and $25 to overseas missions.

We have a separate checking account for the Benevolent fund, but it will be initially deposited into our main checking. At the end of each month I do an AP entry and generate a check to transfer the funds over to the benevolent checking, and for the overseas missions I generate an AP entry and draft a check out of the main checking.

What I am trying to understand is whether I need to use restricted accounts or contribution funds, or something else entirely to be able to track these different contributions.

Contribution funds are TOTALLY different than Funds Accounting funds. Each Contribution fund can be attached to an Income account in Funds Accounting in your Operations fund. You can have two Contribution Funds attached to ONE income account if you want. Now, you can have separate Funds Accounting funds for your Operating and your Benevolence, but you don't have to.

However, since you have separate checking accounts it may not be a bad idea to track them separately if you want.

Now about restriction, that's a different story. Again, its not necessary since you can show income to Benevolence in your Operating fund. However, exactly how much separation of funds do you want or need.