What is Fund Accounting? (Restricted vs Designated Funds) [Church Budget Series: Episode 2]

Fund accounting explained for churches and nonprofits in this beginner-friendly guide. In this video, we cover fund accounting 101, what fund accounting is, why churches and nonprofits use fund accounting, and how it supports financial transparency and accountability. Learn how many funds a church should have, common church fund structures, and best practices for church financial management and nonprofit bookkeeping. We also explain the key differences between restricted funds and designated funds, how donor restrictions work, how church leaders should track and report funds, and how proper fund accounting improves budgeting, reporting, and compliance for churches and ministries. Perfect for pastors, church treasurers, nonprofit leaders, and anyone learning nonprofit accounting basics.