resrticted/release accounts vs. separate funds

[wandam]

I have always used separate fund designations for separate restricted funds from donors. This accounts for the income, expense and balance for each restricted donation in each fund. Also, we don't mix these contributions with our budgeted unrestricted funding. What is the advantage of using the restricted/release account system.? It would take a lot of work to change the system I have in place, particularly since I can't combine funds, etc.

[Matt]

Is all the money in the restricted funds in the same checking account? If so, one advantage of using the restricted/release functionality of the program is that you could use just one accounting fund instead of the numerous accounting funds you currently have to keep track of all your designated fund balances. However, as you state there would be a one time effort required to convert from your current method to using the restricted/release functionality.

[wandam]

All my funds use the same checking/savings accounts, but they are reported to the Church independently as to balances. We do not mix our "operating fund" which other funds since it budget managed. We have a lot of "other funds." I can't see that keeping them in one account using the restricted option saves any account numbers and my biggest problem is getting enough account numbers to cover all the levels of reporting that I have to track. Are you ever thinking about expanding from a four number account number system?

[Matt]

If you use the sub account numbers this gives you 1,000,000 accounts in the Income series alone (4000-000 through 4999-999) available to use. You are correct--using the restricted option won't save you any account numbers. However, it would make it much easier for you to run reports (i.e. you could run a balance sheet for a single fund that would show all of the designated fund balances vs. having to run multiple balance sheets).

[k0031484]

We have 3 Temporary Restricted Funds and each have separate checking accounts (Building, Mission, Scholarships) and I am setting up as separate individual Funds in PC. Do I still need to use the Temporary Restricted Released accounts since these monies can only be used as the donor indicated. I think that as long as I set up separate Funds in Contributions that enter each of the Restricted monies into their separate income & bank accounts (i.e. Building Income in the Building Fund) then I do not need to set up the restricted equity & release accounts). Am I correct
Example:
$25.00 donation to Building Fund.
Fund #20 (in enter contributions) Debit to B2-1110-000 Checking account. Credit to B2-3110-000 Equity account.
Then when I spend the money it's Debit to B2-8910-000 Building Materials and Credit B2-1000-000 Checking account.
I plan on using the higher expense numbers for each of these funds and no funds will have the same expense numbers. Will this work Any suggestions

[k0031484]

I realized when I read my example that I did not use the same checking account number, but I meant to. Next time I'll preview what I wrote before I submit.