transfer designated funds between accounts

Classes are a tag to follow the money, so to speak. The only reason to change the class of designated funds would be if the trustees reallocated monies. As long as the building fund keeps growing from contributions it does not matter which bank account it resides in. Transfer between bank accounts is simply moving money from one hand to the other.

If you do need to reallocate designated building funds to missions, for example, you can change the class through a journal entry even though you are not physically moving any money.   Money on hand is a current asset so a journal entry will use a single account where at least some of the money is. It involves Credit account for existing class and Debit same account, same amount for new class.

You can do the same in a check or deposit with positive amount new class and negative amount old class with net check/deposit being zero

Thanks for replying so quickly!  To clarify, yes, the Building Fund will continue to grow from contributions, but the powers that be prefer we temporarily hold it in checking & then move it to the more permanent savings.  Is there a way to show that disbursement to savings so it'll appear under the class on the P&L for church leaders to see it's not still sitting in checking?  Would a journal entry do the trick and if so, the Building Fund class would be on one side, but what account would be on other side? Please excuse my lack of knowledge on all of this.  Learning as I go...

I've found this question because I am in a similar position. We are a UK registered charity and we want to designate some funds that are curently classed as 'Unrestricted/General" to "Designated/Buildings Fund". The money all sits in a single bank account.

In the answer above, reference was made to a journal, but could you be more specific? E.g. which "accounts" are involved? Intuitively, I tried a journal that debited the bank account with the class set to "Unrestricted/General" and added another line with a credit of the same amount to the bank and with the class "Designated/Buildings Fund", but it seemed to have no impact on the "Statement of Activities by Class report"