Restricted funds

Hi SJB66, thanks for joining the Community.

At the moment it isn't possible to run a balance sheet/statement of financial position by class. This is because the balance sheet headers refer to accounts, whereas classes are a detail assigned at a transactional level (for further info, please refer here). For a more accurate comparison between classes in QBO, you may consider running the Profit and Loss by Class. 

You can also submit feedback for further reporting options by clicking the Cog > Feedback in QB. Feedback submitted here is reviewed by our product development team, who regularly review and implement changes. Thanks!

Thanks for your reply Georgia,

I'm quite surprised that QuickBooks isn't able to track and report restricted fund balances as this is quite a fundamental aspect of charity accounting. It would be good to hear from anyone else working in the charity sector and whether they have any solutions. I'll also feedback to your product development team as you suggest.

I see that you can set up classes to track restricted funds to programs, but how can I report restricted funds that have a transfer from the general fund?  Say I have $1,000 from contributions in the "missions" class and we transfer $500 from the general fund to "missions".  Since that $500 was an internal transfer from the general fund it wouldn't be restricted.  How do I show that of the $1,500 in the "missions" fund/class, only $1,000 of it is restricted as it came designated from donors?  Do I just need to manually note and account for that when creating year end giving analysis?  

Welcome to the QuickBooks Community, Apples521. So pleased you joined us here. I understand you want to add more details or make distinctions between internal transfers and actual restricted funds. 

As you may have observed, restricted funds are tracked in QBO using classes. However, there's no option to assign a class when making a bank transfer.

I'd agree that you can add a note in the Memo section detailing that the $500 was from the general fund. 

By reviewing the register for the restricted funds, you will find that this information is indicated in the Memo column. This allows you to easily differentiate that only the $1000 is contributed by the donors, while the rest of the amount represents an internal transfer.

When you run your Statement of Financial Position and view the Transaction Report, the same information will also be displayed. Simply click on the total amount of the restricted funds account to view the transfer details being separated from the donations.

Although, I'd still recommend referring to your accountant or organization's specific policies and procedures, as well as any relevant accounting standards when conducting such transfers.

To add more guidance and resources, I'll share these articles as well:

• How to Create Single or Multiple Transactions Statements for Donors 
• Run Reports by Class 

If you need any further assistance with running financial or non-profit-related reports, please feel free to reach out to us or ask any follow-up questions, Apples521. The entire QuickBooks team is always ready to provide our support and expertise whenever you need it.