I don't believe that I did very well at asking my question...here's a little more detail:
Our organization has started a capital funding campaign and is accepting donations towards a project.
Should I be entering funds received as a credit to "Campaign" liability with a deposit? Or should the deposit be as income and a corresponding journal entry to add to this "liability" (and what is the offset)?
Then when we use the money, would the transaction be a debit to the "Campaign" liability and offset by the expense account?