Transfer tithes income $ to restricted equity accts

[truehope]

Hi. We want to start taking a percentage of our unrestricted "tithes and offerings" income each week and put it into temporarily restricted accounts like Youth, Sunday School, Outreach etc... If I transfer out of the income account to the restricted equity accounts, it correctly accounts for the funds we want to go into the restricted accounts, but it then reduces the amount of income, making it look like our "tithes and offerings" is less than it truly is. If I do the transfer from the "tithes and offerings" income account to the restricted income accounts, then the amount of income totals is correct, but then it makes it look like our people have requested these funds to be restricted. They have not restricted these funds but we at the church want to restrict them. What would be the best option here... to go ahead and record it as temporarily restricted income even though the people didn't necessarily restrict it, they just gave as tithes to the general fund?

Thanks for your help!

[NeilZ]

Hi. We want to start taking a percentage of our unrestricted "tithes and offerings" income each week and put it into temporarily restricted accounts like Youth, Sunday School, Outreach etc... If I transfer out of the income account to the restricted equity accounts, it correctly accounts for the funds we want to go into the restricted accounts, but it then reduces the amount of income, making it look like our "tithes and offerings" is less than it truly is. If I do the transfer from the "tithes and offerings" income account to the restricted income accounts, then the amount of income totals is correct, but then it makes it look like our people have requested these funds to be restricted. They have not restricted these funds but we at the church want to restrict them. What would be the best option here... to go ahead and record it as temporarily restricted income even though the people didn't necessarily restrict it, they just gave as tithes to the general fund?

Thanks for your help!

Restricted Income is not necessarily due to restrictions put on it by donors, it can be restrictions put on the income by the church board for uses such as you describe. Moving from unrestricted income to a restricted income account is the proper way to do this.

If you do this correctly, the related equity/net assets/fund balance accounts are update automatically by the system.