Understanding Restricted Funds

What are restricted funds?

Donations given by donors to a fund established by the church. Building fund, and missions fund are the two most common.

Can restricted funds be used for other purposes?

In short, no.

Tips for starting restricted funds?

There is usually a better response from donors to something like a building fund. We suggest keeping the purpose broad so that your hands are not tied down to a detailed purpose. For example, saying the missions fund is for “missions” instead of a specific organization or saying the building fund is for construction, improvements and maintenance.

Can a church member restrict their donation to the church?

No, the church should not accept a donation from a donor stipulating how it should be used. If the church has not established a fund for it a donor cannot establish a fund themselves and have the donation be tax deductible.

Where do I find my restricted fund balance?

In technical terms you find the balance on your Statement of Financial Position. The ins and outs can be found on your Statement of Activities. At Guided Insight we have this information readily available for you on your financial dashboard.