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Charity Restricted Fund

aeolaiaeolai Member Posts: 2

Hello. As a charity, we have to treat some of our funds as restricted. How do you do this in Wave?

in Accounting Technical Support

Comments

  • RezaReza Member Posts: 24 admin

    Hi @aeolai

    Could you please expand on this? What type of charity you are and it which country? Also could you please elaborate on what you mean by 'restricting funds'? Is that in the context of accounting?

  • aeolaiaeolai Member Posts: 2

    Hi @Reza, we're a UK based charity, but the principal of restricted fund applies in many countries and to all types of charity. Basically, in charity accounting, all donations (income) are classified as being either "restricted" meaning that they can only be spent on a specific purpose (e.g. a grant to fund a particular project) or "unrestricted" where they can be used for any purpose.

    See https://www.thebalancesmb.com/restricted-unrestricted-nonprofit-funds-2502167 for a comprehensive explanation

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