June 5, 2023 at 1:17 pm

    One way to handle it in the accounting records is to utilize tracking categories. For example:

    1. In Xero, use
      Department and Location tracking codes.
    2. In Quickbooks, use Class, Sub-class or Jobs tracking codes.

    When you submit financial statements to the Board, present the following:

    1. Financial statement
      following the Generally Accepted Accounting Principles (GAAP), which will
      show Annual Fund at $36,000 and other Revenue accounts, including DAF, at
      different amounts.
    1. Financial statements
      specifically for Annual Fund showing the revenues and expenses of the
      annual fund. This will show the sources of revenues that match with Sales
      Force. This is how we tracked our programs/grants.