Tracking "Grants"

[SBCTrustee]

Hello Everyone,
My Board has elected to "give" a grant of $1000.00 to both the Mission & Youth Departs of my church. If the funds are not spent by years end, then the funds go back to the General Fund.

(We are using PC+ V.9. Both the Mission & Youth Departments are accounted for through one checking account in the General Fund). I need to report monthly on the amount used for the grant & the balance remaining). Both of these departments have some funds that they raise & spend normally, but that is not my concern, at this time.

I want to treat the grants as restricted funds, somehow, but have no real revenue to do this. I believe that I could start the restricted funds something like this:

Debit Unrstricted Fund Balance 2000
Credit Mission Dept Grant Equity 1000
Credit Children Dept Grant 1000


I don't know where to go from here.

Help!!

Tom

[Matt]

Tom,

Just curious--couldn't you just set up two new expense accounts to track the spending of this "grant"? Since no one has actually given money to the church restricted for this purpose these really shouldn't be shown as restricted funds on your financial statements.

Matt