How should a nonprofit track donations going to a specific fund?

To track donations that are designated for a specific fund, creating a GAU Allocation record for the designated fund is the most effective approach. GAUs, or General Accounting Units, are used within the Nonprofit Success Pack (NPSP) to categorize and manage donations based on their intended purpose. By creating a GAU Allocation record, the organization can link donations directly to the specific fund, ensuring accurate tracking and reporting.

GAU Allocation records allow nonprofits to specify which donations are allocated to a particular fund and can handle scenarios where a single donation is split among multiple funds. This level of detail is crucial for financial reporting and for providing transparency to donors about how their contributions are being utilized. It also enables nonprofit organizations to analyze which funds are receiving support, helping them make informed decisions around fundraising strategies and resource allocation.

Utilizing GAU Allocations contributes significantly to the overall effectiveness of the NPSP, as it aligns donations with their intended use, maintaining the integrity of financial data and helping nonprofits meet their mission-related goals.