Understanding Accounts and Funds for Donations

Some users have asked why they can't select accounts for their donations instead of funds. GiftWorks allows you to specify a fund when entering a donation and not select a specific account. There are a number of reasons why GiftWorks works this way:

  1. You don't specify an account when entering a donation because from an accounting perspective, a single donation will affect TWO accounts at the same time. For instance, a single cash donation will affect both your INCOME (credit account) account and your CASH (debit account) account. So, in GiftWorks, when you setup your Funds and Accounts, you setup a fund that will be connected to two accounts. (eg. "General Fund" would most likely be connected to both your Cash and Income accounts).
  2. We designed GiftWorks to separate donation entry from accounting management. GiftWorks was designed so that the appropriate people could setup the Accounts and Funds in GiftWorks so that data entry personnel would not have to make accounting choices (which account should I use, etc.). In GiftWorks you setup a fund that points to the appropriate debit and Credit account. This way, the data entry person only needs to correctly choose the fund and the appropriate accounts will be affected.
  3. You will want to setup as many Funds as you need to be able to affect the different Accounts you have.

Even if you are not planning on integrating GiftWorks and QuickBooks, you may want to watch this Video If you are planning on integrating GiftWorks and QuickBooks, there is an entire Video series that helps you integrate the two: And if you are not the accounting contact for your organization, we always recommend consulting with an accounting professional to ensure things are setup properly.

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