Church bookkeeping
Fund accounting and designated funds for churches
When someone gives for missions, the building or youth camp, that purpose follows the dollar. Fund accounting keeps the purpose attached, and makes it provable, all year.
Three kinds of money, three sets of rules
General funds are unrestricted gifts, directed by leadership through the budget.
Restricted funds carry a purpose set by the donor. Generally, only the donor's terms govern how they can be used.
Designated funds are amounts leadership has chosen to set aside. Leadership can usually change them.
Churches often call all earmarked gifts “designated”. Part of setting up fund accounting is agreeing, in writing, which funds are which, so no one moves a donor-restricted balance by mistake. Read the plain-language guide.
| Fund | Opening | Gifts | Spent | Closing |
|---|---|---|---|---|
| General operating | 42,180 | 31,650 | (29,940) | 43,890 |
| Missions (restricted) | 8,420 | 2,150 | (1,600) | 8,970 |
| Building (restricted) | 61,300 | 4,800 | — | 66,100 |
| Youth camp (designated) | 3,050 | 1,275 | (2,410) | 1,915 |
| Total | 114,950 | 39,875 | (33,950) | 120,875 |
Illustration only: invented figures showing the report format, not client data.
What fund accounting support includes
- A written list of every fund, its type, and who may change or close it
- Chart of accounts and fund tracking set up so reports stay readable
- Gifts recorded to the correct fund at deposit, not reconstructed at year end
- Spending coded to the fund it came from
- Monthly fund balance summary: opening balance, gifts, spending, closing balance
- Fund balances that tie to total cash and the balance sheet every month
- Help planning how completed or over-subscribed funds are handled, for leadership to decide
Already using QuickBooks?
Many churches track funds reliably in QuickBooks with the right setup. As a QuickBooks Online Advanced ProAdvisor, Carey can set up or repair fund tracking in your existing file.
Fund accounting questions
How do you keep designated gifts tied to their purpose?
Each gift is recorded to its fund when it is deposited, fund balances are carried forward month to month, and spending is coded to the fund it came from. Leadership receives a fund balance report every month, so it is always clear what has been given for a purpose, what has been spent, and what remains.
What is the difference between restricted and designated funds?
Restricted funds carry a purpose set by the donor, and generally only the donor's terms govern how they can be used. Designated funds are amounts church leadership has set aside for a purpose, which leadership can usually change. Churches often use the words loosely, so part of setting up fund accounting is agreeing which is which.
Can a church use QuickBooks for fund accounting?
Yes, with careful setup. QuickBooks is not purpose-built fund accounting software, but a consistent chart of accounts, class or location tracking for funds, and disciplined monthly reporting let many churches track funds reliably in QuickBooks.
Start with a conversation
Get your church's funds reporting clearly
Tell us about your church or business and where your bookkeeping stands. Carey will follow up to arrange a consultation, and you'll receive a written scope before any work begins.