Funds, restrictions and the ledger

Create funds with or without donor restrictions, release restricted money when its purpose is met, and see how every gift posts to the general ledger.

A fund is where gifts go. Each fund belongs to one of the two classes of net assets: without donor restrictions (money you can use for anything) or with donor restrictions (money a donor limited to a purpose or a time).

Before you start

• The organization is a nonprofit and Giving is on. See Set up giving.
• You hold the Giving admin grant or are a company administrator.
• Finance is on, so gifts post to the books. While Finance is off, postings wait and go through when it is back on.

Create a fund

1. Open Giving → Funds and click New fund.
2. Code (required): short, shown in lists and on the ledger, for example BLDG.
3. Name (required), for example Building fund.
4. Class: without or with donor restrictions. For a restricted fund, say what the donors limited it to in Restriction purpose.
5. Save.

The Funds list shows each fund's class, the gifts it holds, what has been released, and the balance.

To change a fund, use ⋯ → Edit… on its row. Setting In use to Inactive: kept for history takes the fund off new gifts and off the donation page; its gifts stay. A fund that holds gifts keeps its class.

Release money from a restriction

When a restricted fund's purpose is met (the roof is replaced, the scholarships are paid), move the money to a fund without restrictions:

1. On Giving → Funds, click Release from restriction….
2. Pick From (restricted) and To (without restrictions), enter the Amount (USD), the date the Restriction met on, and How it was met (for example "Roof replaced, invoice 2026-118 paid").
3. Click Release.

The release posts to the ledger and is audited. It appears under Releases from restriction; ⋯ → Void… reverses it with a reason.

What the nonprofit chart adds

When the organization becomes a nonprofit, its chart of accounts gains Investments (1400), Net assets without and with donor restrictions (3200, 3300), Contributions without and with donor restrictions (4200, 4210), In-kind contributions (4300), Net assets released from restriction (4400) and Donated goods and services (6950). No existing account is renamed or removed; a number you already use moves to the next free one.

How gifts post

Every gift posts itself, with the fund on each line. Ledger memos name the gift's number, never the donor.

A void or an edit reverses the old posting. Stripe clearing and PayPal clearing hold what each provider owes you until a transfer reaches your bank; record that transfer in Finance when it arrives. See Finance.

Troubleshooting