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Nonprofit Fund Tracking Register
One row per restricted award, with the restricted balance calculating itself and status flags for overspending and expired grant periods. Plus a release log and a conditional-contribution test built on the actual FASB standard.
Download Excel Register →
+ Tracking Guide PDF
Format: Excel + PDF
Excel Tabs: 4
Formulas: Built in
Updated: September 2026
XLS+PDF
Fund Tracking Pack
4 tabs + 2 pages · ~150 KB · 100% free · No signup required
What’s Inside the Register
Restricted funds go wrong in one predictable way. Money arrives with a purpose attached, gets spent on that purpose, and nobody records the release. The restricted balance never comes down. Two years later the balance sheet claims you are holding restricted funds you spent long ago, and nobody can reconstruct which ones.
Excel · Tab 1
Fund Register
- One row per restricted award
- Award, received, spent and released columns
- Restricted balance calculates automatically
- Grant period start and end dates
- Status flags: OVERSPENT, PERIOD ENDED
- Totals row to tie to the balance sheet
Excel · Tab 2
Release Log
- Every release with a date and amount
- What actually satisfied the restriction
- Whether it has been posted to the GL
- Who recorded it
- Running total
- The audit answer, written as you go
Excel · Tabs 3–4
Conditional Test
- The two-part test from ASU 2018-08
- What counts as a barrier
- What a right of return means
- Why restricted is not conditional
- When it is an exchange transaction instead
- Every rule cited to its standard
Restricted Is Not the Same as Conditional
These two words get used interchangeably, and they mean completely different things. Getting them backwards changes when you recognize revenue — which changes your whole year.
Restricted
Revenue now
The donor said what it is for
It is revenue immediately, sitting in net assets with donor restrictions until you spend it on the stated purpose. The restriction governs use, not timing of recognition.
Conditional
Not yet
The donor said what you must do first
Not revenue yet. Cash you have received sits as a refundable advance — a liability — until the condition is substantially met or the donor explicitly waives it.
The test
2 of 2
Both elements, or it is not conditional
Under FASB ASU 2018-08 a contribution is conditional only if the agreement has both a barrier — a measurable performance requirement, specific output, matching requirement, or outside event — and a right of return or right of release. One without the other does not count.
Neither
606
Or it may not be a contribution at all
If the funder receives commensurate value in return, it is an exchange transaction under Topic 606, not a contribution. Some government contracts sit here, and the accounting is entirely different.
The Release Entry Is the Whole Game
When restricted money is spent on its restricted purpose, the restriction is satisfied and the amount moves from with donor restrictions to without donor restrictions. That is the release entry, and it is the single most frequently skipped step in small-nonprofit bookkeeping.
There is a one-line diagnostic. If your restricted net assets have only ever gone up, you are not recording releases. The register’s restricted balance column should agree with net assets with donor restrictions on your balance sheet. When those two disagree, a release is missing — and the difference between them is the amount.
Four Failures This Register Catches
1
Spending past the award
Spent exceeds awarded. Usually costs were coded to the wrong fund — and on a government grant, the overage may simply be unallowable.
2
Expired grant periods
The period ended with money unspent. Most funders will discuss an extension if asked beforehand; very few will after.
3
A restricted balance that never falls
Releases are not being recorded. Your balance sheet overstates restricted funds and understates what you can actually spend.
4
Conditional money booked as revenue
Revenue recognized before the barrier was met. It overstates the current year and creates restatement risk if the condition is never satisfied.
Who This Register Is For
GR
Grant Managers
You need to know what is left on each award without waiting for a month-end report.
BK
Bookkeepers
You inherited restricted balances that have never come down and need to find out why.
ED
Executive Directors
You want to know how much of the bank balance is genuinely available before making a hiring decision.
TR
Treasurers
Heading into a first audit, where restricted fund tracking is one of the first things examined.
Frequently Asked Questions
Is this really free?
Yes. No email address, no signup, no gate. Download either file directly.
What is the difference between a restricted and a conditional contribution?
A restriction says what the money is for; the gift is revenue immediately and sits in net assets with donor restrictions until spent on that purpose. A condition says what you must do before the money is yours; under FASB ASU 2018-08 the contribution is not revenue yet, and cash received is recorded as a refundable advance until the condition is substantially met or explicitly waived.
How do I tell whether a grant is conditional?
The agreement must contain both elements. First, a barrier the organization has to overcome — a measurable performance requirement, a specific output or outcome, a matching requirement, or an outside event. Second, a right of return of the assets or a right of release of the donor's obligation to transfer them. If only one is present, the contribution is unconditional.
Should I create separate accounts for each restricted fund?
Generally no. Separate accounts for every grant make the chart of accounts unmanageable and still do not show how much of a specific award remains. Track restriction as a separate dimension using classes, funds, or tags, and keep a register above the ledger with one row per award.
What is a net assets released from restriction entry?
When restricted money is spent on its restricted purpose, the restriction is satisfied and that amount moves from net assets with donor restrictions to net assets without donor restrictions. It is the most frequently skipped entry in small-nonprofit bookkeeping, and skipping it makes restricted balances grow indefinitely.
How do I know if releases are being missed?
Compare the restricted balance total in the register against net assets with donor restrictions on your balance sheet. They should agree. If restricted net assets have only ever increased, releases are not being recorded, and the gap between the two figures is the amount at issue.
How often should the register be updated?
Monthly, at the same time you reconcile. It takes minutes when current and hours when it is not. Once a quarter, tie the restricted balance to the balance sheet, and before year-end close review the period-end dates so expiring grants become conversations while the funder still has options.
Related Resources
Restricted balances that never move?
Unwinding several years of missing release entries is careful work, and it is the kind of thing worth doing once, properly, before an audit rather than during one. We do this for small and mid-size 501(c)(3) organizations.
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