# Funds and grants

> Restricted and unrestricted tracking, and the statements a nonprofit actually files.

Section: Industry editions · Canonical: https://intubu.intuitivecapital-dai.com/docs/funds-grants

Accounting → Funds & Grants.

Fund accounting for organisations that must show money was spent on what it was given for.

**Every transaction carries a fund**, so restricted and unrestricted money never merge into one balance. Net assets report with and without donor restrictions, which is the split the financial statements require.

**Release from restriction** is an explicit posting rather than something implied by spending. When a restriction is satisfied, the release moves the amount between the two classes and shows on the statement of activities, so a reader can see the money arrive, sit restricted, and then be released.

**Functional expense allocation** splits costs across programme, management and fundraising using the drivers you set, which is what the Form 990 matrix and the statement of functional expenses are built from.

Grants track their award, spend to date and remaining balance, with the reporting period each grant requires.