Restricted Funds


(TN)

Over the past 2 years, we have held several benefit/silent auction signings to raise money for a "Van Fund" at our church.

These monies were donated & raised for this specific purpose and placed in a Van Fund in the church finance report.

Now, some are wanting to use these funds for other purposes. My opinion is that these are "Restricted Funds" and cannot be used for anything other than what people donated or gave specifically for (which was church van). Is this correct?

Thanks for any input.

Comments for Restricted Funds

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Restricted/Designated Funds
by: Karen

When you specifically raise Funds for a purpose, you should add a disclaimer that if the amount raised is more than the amount needed, it can be moved to the general fund.

My designated funds are in the same bank account as the general funds, and so get used in the short term. Ie: insurance is needed 2 times a year, so as long as there's enough money then to pay...

It's ifffy, and I don't like it. I let the Finance committee know monthly when there is more designated/reserved/restricted than actually in the bank. No one seems to pay attention, when I tell people we're playing with monopoly money.
Suspicious activity
by: Anonymous

If the church closes, what happens to these designated funds. Should money be divided amongst the singing groups and individual singers that donated their time and talents to assist in this fundraiser.

It seems there is already some misappropriation of money taking place, that's why there is such division and church attendance has dropped.

Small group in charge of money but don't want to report itemized expenditures to members.
Restricted Funds
by: Anonymous - MN

I would agree with your assessment that these funds would be restricted. If you have an immediate need for funds, you might consider 'borrowing' from those designated funds as long as you also make commitments to make payments and return those funds to be used for their intended purpose.

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