On Sat, Aug 29, 2020 at 09:51:45PM +0100, Fred Bone wrote: > On 29 August 2020 at 11:40, Chris Green said: > > > I have been doing some reading around this restricted/unrestricted > > funds issue. > > > > I think in reality we have *no* restricted funds in our PCC. What I > > *thought* were restricted funds are actually 'designated' funds. I.e. we > > (the PCC) have made a collection for example 'for repairs to the church > > roof', this is (as I understand it anyway) designated and while it will > > probably be used to mend the roof the PCC is quite at liberty to change > > its mind and do something else with the money. > > > > A restricted fund is something where the *donor* has specified that > > the money is to be used for a specific purpose and is often long term and > > may actually (though not necessarily) be an endowment or some such. > > > > I don't think I need to manage 'restricted' funds as we don't have any in > > our tiny little church. > > You may be right, but if a collection has been made *for a specific > purpose* (such as "repairs to the church roof") then the contributors are > entitled to expect the proceeds to be spent on that specific purpose, and > so you should be running a "restricted" fund. The fact that there are > dozens of people rather than a single donor is beside the point.
Well, it is the point in a legal/tax/charity sense. We (the PCC) decided to make the collection so it's at our discretion what we use it for, As it's a 'designated' fund then it has to be used for the designated purpose but it doesn't have all the legal and accounting rules that a restricted one would. Of course 99 times out of a 100 the fund will be used for its designated use but, with a formal decision at a PCC meeting, its use can be changed. -- Chris Green _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.