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→General Concepts
==General Concepts==
==General Concepts==
In fund accounting, activities are grouped into various funds. There is always one '''unrestricted fund''' (which captures activity of monies not designated for a specific purpose) and (except for very small non-profits) at least one '''restricted fund''' (capturing activity of funds designated for a specific purpose).
In fund accounting, activities are grouped into various funds. There is always one '''unrestricted fund''' (which captures activity of monies not designated for a specific purpose) and (except for very small non-profits) at least one '''restricted fund''' (capturing activity of funds designated for a specific purpose).
A restricted fund may be established by another entity (such as a donor giving money to a church for its building fund) or by the entity itself to set aside funds for a specific purpose (such as for a youth mission trip).
Unlike with a company, where all activity is combined into one set of financial statements, in fund accounting the unrestricted fund (or '''general fund''') and each restricted fund is shown separately. (In practice, the front of the financial statements may have an executive summary showing the unrestricted fund, followed by all other funds consolidated, with detail by fund shown later.)
Unlike with a company, where all activity is combined into one set of financial statements, in fund accounting the unrestricted fund (or '''general fund''') and each restricted fund is shown separately. (In practice, the front of the financial statements may have an executive summary showing the unrestricted fund, followed by all other funds consolidated, with detail by fund shown later.)