What is a restricted fund?
A restricted fund is money a donor gives with strings attached — it can only be spent on a specific purpose (a "purpose restriction") or after a certain time (a "time restriction"). Nonprofits must track these separately from their general (unrestricted) money and report them under FASB ASC 958 as "net assets with donor restrictions."
The hard part is keeping each restricted pool's balance accurate as contributions come in and expenses go out — and never overspending a restriction. That's exactly what this tracker does: every contribution and expense is tagged to its fund, so each restricted balance is always correct and audit-ready.
Why a spreadsheet isn't enough
- Spreadsheets don't stop you from overspending a restriction.
- Rolling restricted balances into your net-asset statement by hand is error-prone.
- Auditors and boards want a clean, per-fund trail — not a tab of formulas.
The full Accounting Gnome module adds cloud storage, reporting, QuickBooks export, and net-asset reconciliation on top of what you see here.
Accounting Gnome