Fund accounting is a concept unique to charities. Whilst all charity funds must be spent on a charitable purpose, some funds (those that are restricted) can only be used for the specific charitable purpose for which they were given. This paper explains the most often-used types of funds and considers how each fund can be used.
- What are the different types of charity funds?
- Types of unrestricted funds: General and designated;
- Types of restricted funds: Income and endowment;
- Can money be transferred between different types of funds?
- Accounting for different types of funds;
- What does the Charity SORP say about fund accounting?