Budgeting with restricted funds

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#1
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24-Feb-2022 1:43am
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America
I am struggling with how to present the budget for my nonprofit employers. With respect to releasing restricted funds that were recorded as revenue in a previous year, for a project to be done next year. We use Quickbooks and are a bit constrained on how we can present. We aren't set up for a two-column restricted/unrestricted presentation for internal reporting and budget tracking. I have to balance the goals of: (1) wanting to budget for the actual GAAP basis results we expect to show for the year (which means there will be no income for this item next year). And (2) wanting to show that this project isn't "losing money" but rather using revenue from a previous year. Basically, I either add a line to revenues for "use of restricted funds" and then we aren't GAAP basis and will show a budget variance at year-end. Or, show the use of restricted funds as a write-in below the net income in the budget. I cannot seem to find examples of how other organizations have done this. Thanks
 

#2
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155
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22-Oct-2014 7:13am
Location:
NC
When restricted funds are used, there is a reduction in the restricted assets and it is reported as assets releasd from restrictions and reported as income in the current year.

Budget normally to include the money to be spend from donor restricted funds nd yu will be fine.
 

#3
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Northern MI and Coastal SC
Bushmaster is right on and how I have handled this scenario in the past. Had no issues with audits concerning GAAP.
 


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