I’d double check with a CPA or legal advisor concerning the ‘earmarking’ of donations if your organization takes them as tax-deductible in the U.S.
I could be wrong, and I may only be thinking of certain types of non-profits, but my understanding is that tax-deductible donations to non-profits cannot be earmarked by the donor. If that’s the case, it would save you some accounting work. Regards, Adrien > On May 18, 2017, at 10:03 AM, Anita Graves <[email protected]> wrote: > > Dear All, > > I am the treasurer for a religious organization and we have contributions > coming in that are earmarked for a certain purpose. I propose to enter these > as separate Asset child accounts and then spend them in the corresponding > expense account. Do I have that right? > > What do I do with ‘in-kind’ contributions? No cash changes hands but it is > the same difference, so do I debit the cash income account and credit the > expense account? > > Thanks for helping, everyone. > > Anita > >> >> Exactly—the bank shows our actual lump asset, but we care about the movement >> of these ‘earmarked’ funds and keep them in our reports, so we know at a >> glance how much spendable money in the bank we actually have, as opposed to >> what the bank statment gives as our balance. >> >> Anita >> >>> On 18 May 2017, at 5:49 PM, Maf. King <[email protected]> wrote: >>> >>> On Thursday, 18 May 2017 15:39:59 BST you wrote: >>>> Maf, I forgot to mention an important thing: I am not moving money from >>>> the >>>> bank, I am keeping it in the GC account tree along with cash, current, >>>> savings accounts, so one would only know about these funds that are set >>>> aside by looking at the GC accounts, not by looking at the bank statement. >>>> It initially comes in as a contribution, and so I would put the >>>> contribution in the asset subaccount, as an earmarked account, and then >>>> spend that balance down to zero in the expense account. Is that right? >>>> >>> >>> Yes. your GC bank account can have sub-accounts - virtual "pots" of money >>> that only show up if you look at GC. The bank thinks you have 1 "big" >>> account, you think in terms of several mini accounts within the main bank >>> account that keep your reserved totals easy to find... >>> >>> Maf. >>> >> >> _______________________________________________ >> gnucash-user mailing list >> [email protected] >> https://lists.gnucash.org/mailman/listinfo/gnucash-user >> ----- >> Please remember to CC this list on all your replies. >> You can do this by using Reply-To-List or Reply-All. > > _______________________________________________ > gnucash-user mailing list > [email protected] > https://lists.gnucash.org/mailman/listinfo/gnucash-user > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list [email protected] https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
