Fund Accounting Software for Churches

Fund Accounting Software for Churches thumbnail
Fund accounting software tracks a church's financial activities by individual fund.

Churches have specialized accounting needs, requiring fund accounting software to track data about their financial activities. Off-the-shelf business accounting software will not meet these needs.

  1. Value of Fund Accounting Software

    • Fund accounting software tracks the donations and expenses for each fund. Although the money is tracked by individual fund, the software maintains an overall balance sheet and income statement for the church that consolidates all funds.

    Types of Funds

    • Churches have separate funds for ongoing programs, such as youth ministry, as well as funds for limited duration projects, such as a building campaign. Some funds are created by one large donation, while others have regular inflows, such as fees for a children's weekend camp. The software's ability to track by fund enables the church to know if a program like a weekend camp broke even.

    Restricted Versus Unrestricted Funds

    • Some donations are restricted (given for a specific purpose). The church is accountable to the donor (and in some cases, by law) to ensure that all monies spent relate to the donor's restriction. The fund accounting software must provide the audit trail.

    E-Giving

    • The church's online donations software should allow contributors to donate directly to the available funds, integrating with the fund accounting software.

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