Fundraising Accounts

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Our Christian school is having their first fundraiser. I'm wondering what the best way is to set that up in our chart of accounts. Should I set it up as a subaccount? And if yes, what do I classify it as? Thanks.

QuickBooks Online

Rainflurry

Level 11

@RCBC_1611

Presumably, these are considered restricted funds, which are subject to expenditure for a specified purpose. If so, set up an equity (net assets for NFP) account for the fund called "Donor Restricted - Fund XYZ" and record all of the funds contributed or pledged to that account. When you spend the funds, reclassify them to the appropriate revenue account with a journal entry: debit Donor Restricted - Fund XYZ, credit the appropriate revenue account.

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