USA Unrestricted funds

[Melly4]

Hello all,

I am new to this forum. I have started to take over the books for the last accountant and can't figure out for the life of me why all of the income is going to the unrestricted funds' account? I believe that some of these donations have restrictions and some should go to other accounts, we have too much money sitting in net income?

Can someone give me a good reason why every donation is sitting in unrestricted, am I missing something?

 

[Fidget]

Quite possible that the person before you just posted it all to that account. Up to you, now that you've noticed it, to roll up your sleeves, do the nittiy-gritty, and then post the amount(s) from that account to the accounts they should've gone to.

Before you do that, just ask around first to make sure that a decision hasn't been taken somewhere along the line to just post it all to the one account. This does happen - various accounts get set up, somebody realises at some point that there's not any point in having them all and just one is ok, yet doesn't tell anybody.

 

[pndaccountants]

Something like "When given a donation of unrestricted funds by an individual, a non-profit organization might allocate their use toward helping offset the organization's operating costs such as rent, labor costs and utility bills." Am i right ?