Funds Transfer

Teresa Balaszek

Can anyone tell me what their journal entry looks like to move funds from with donor restrictions to without donor restrictions, once the restrictions have been met? I have funds sitting in a fund balance account. I want to move them to without restrictions, but I know they shouldn't go to another fund balance account. What type of account needs to be created?

Kevin Brazell

@Teresa Balaszek
This can vary depending on how each database is setup and the individual fund transaction requirements each database has configured. As an example, many of the sample databases uses the accounting funds to control the class / restriction. If this is the case, then an entry to move money from one restriction to another could be as simple as a debit to one account in a fund , and the credit to the other one ( Fe will take care of the balancing interfund entries per fund provided all the database settings are on and setup that allow this. If not you'd have to have 2 extra lines in the entry to balance the funds.) . So what is more important is: 1. how are you tracking the restriction currently in your database 2. What are your fund transaction requirements on your fund. 3. Are all the interfund settings configured and the accounts setup?

Mary Teo

@Teresa Balaszek We use fund accounting (1 = unrestricted, 2 = temp restricted, 3 = permanently restricted. We created a specific GL account (4998) called Released from Restrictions. This falls within our revenue category. The JE for releases would be DR 2-4998, CR 1-4998. And make sure the box is checked for ‘automatically create balancing interfund entries’.

Linda Jilek

@Kevin Brazell
I have this same question. Our issue is that our database is set up with the fund being the company so it makes the entries challenging. Historically, we haven't had many restricted gifts and most are free from restrictions within the fiscal year. We now have some significant multi-year pledges and we're struggling with how to report them on our monthly management reports. Any suggestions or Knowledgebase articles to refer me to?

AnneMarie Smith

@Linda Jilek
It as set up incorrectly so you need to just to workarounds. You set up the restricted revenue accounts and you will need to manually do an entry at year end to close out correctly. I have worked with many companies that have this issue. I think Blackbaud does not spend enough time with clients at set-up. I have ben with them for years and had a person come out and train me.