[AILEEN]

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.

2. 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.

[Joseph]

I want to thank everyone for their input. I’ve forwarded the thoughts and suggestions in this thread on to our Executive Director and Associate Director to share with our board finance committee. It has helped me to wrap my head around various solutions and how to communicate those solutions.

[Wade_Rogers_Forum_Moderator]

Glad to hear it Joseph and thanks again to all who have participated!

[Theo]

Theo here. Joseph, I can see why the board might be confused. They may simply be looking at two different views of the organization’s finances without enough explanation of how the figures relate to one another. My view is that finance reports provide the formal accounting picture, while fundraising reports provide a relationship and development picture. Both can be useful for different purposes. A simple bridge document could help connect the two. One page could show the finance figure, then identify DAF and family foundation gifts separately, followed by the annual fund total. Calling it something like “Fundraising View” could make its purpose clear. Providing it alongside the regular finance pack may make the distinction much easier for the board to follow.