How do I account for Funded Projects

[AJD]

This post in a previous thread about church accounting may be of some help.

Church accounting

Funds that are set aside for a particular purpose should be considered as claims against the assets of the organisation. As such they should be reported as either liabilities or equity. The generally accepted practice is to show them as equity in the form of “Reserves”, especially if there are any undisbursed amounts held for these funds at the end of a reporting period. As an example, a church may have a Building Fund, an Overseas Missions Fund, and a Local Missions fund. This will require…