Restricted Fund Method

Public Sector Accounting (PSAS) · 3:24

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Lyrics

[Verse 1]
When donors give with strings attached
Their wishes must be tracked and matched
Two methods stand before your eyes
To handle funds with ties that bind
Deferred contributions wait in line
But restricted funds have their own design

[Chorus]
Separate the funds, keep them apart
Restricted method, that's the art
Track each dollar, track each cent
Know exactly where it went
Separate reporting, clear and bright
Restricted fund method done right

[Verse 2]
Create distinct accounting books
For every gift that has special hooks
Operating funds in column one
Restricted funds until they're done
Capital campaigns get their space
Endowments have their rightful place

[Chorus]
Separate the funds, keep them apart
Restricted method, that's the art
Track each dollar, track each cent
Know exactly where it went
Separate reporting, clear and bright
Restricted fund method done right

[Bridge]
Deferred method bundles all together
Shows restrictions like a tether
But fund method splits the view
Shows you what each fund can do
Transparency for donors' eyes
No financial compromise

[Verse 3]
When expenses meet their match
Release restrictions, make the catch
From restricted fund to operating
Show the transfer, no debating
Balance sheets will clearly show
Where restricted dollars go

[Chorus]
Separate the funds, keep them apart
Restricted method, that's the art
Track each dollar, track each cent
Know exactly where it went
Separate reporting, clear and bright
Restricted fund method done right

[Outro]
Choose your method, make it clean
Best reporting you've ever seen
Restricted funds or deferred way
Both will guide you through the day

← Deferred Contribution Method | Tangible Capital Assets for NFPs →