Hello candace!
Let me share this information with you.
Restricted
contributions are donations received by an organization in which the donor
restricts the use to a particular purpose.
The two types were Temporary and Permanent.
For Temporary
Restrictions, these were funds
donated to a nonprofit that may be temporarily restricted. Temporarily restricted funds may be either
time restricted or purpose restricted. If the donation is time restricted, the
funds must be used in a specified manner for a period of time. While for Permanent
Restrictions, a donor may place a permanent restriction on funds donated to
the nonprofit. In contrast to temporary restrictions, permanently restricted
donations use the interest accumulated on donated funds as financial support for
an indefinite period. Provided the nonprofit uses the funds in a manner
specified in the gift instrument, the funding is theoretically forever.
I highly suggest
you seek your accountant’s advice on setting this up in QuickBooks.
Please stay in
touch with us if you need any help.
