A portion of the money in the church’s checking accounts may represent money that is held for specific restricted purposes, including various religious education accounts, social action accounts, the minister’s discretionary fund, etc. They may also represent “pass through” funds such as those received in “Share the Plate” offerings or fundraisers for an outside organization. These are usually called “restricted accounts.” (Read more about endowments for information about restricted funds from bequests or other gifts).
Money in restricted accounts may be used only for the indicated purpose.
Restricted account balances are reported on the balance sheet.
Restricted accounts are not part of the operating budget.
Income and expenditures from the restricted accounts are best reported separately from the operating budget report.