Fund Tracking Software: Manage Every Dollar
How fund tracking software helps nonprofits manage restricted and unrestricted funds.
Fund Tracking Software: Manage Every Dollar
Nonprofits must carefully track how funds are used. Fund tracking software makes it easy to manage restricted, unrestricted, and temporarily restricted funds—ensuring compliance, transparency, and donor trust.
What Is Fund Tracking Software?
Fund tracking software is a specialized tool that helps nonprofits monitor and report on how money is allocated and spent across different funds. Unlike generic accounting software, fund tracking tools are designed for the unique requirements of nonprofit financial management.
Why Fund Tracking Matters
1. Donor Restrictions
Many gifts come with restrictions—donors specify how their money should be used. Fund tracking ensures you honor those restrictions and can prove it.
2. Grant Compliance
Grants often require detailed tracking and reporting. Fund tracking software helps you monitor spending against grant budgets and produce compliance reports.
3. Board and Audit Requirements
Your board and auditors need to see how funds are managed. Fund tracking provides the transparency and documentation they require.
4. Financial Health
Understanding your fund balances helps you make better decisions about spending, saving, and fundraising.
Key Features of Fund Tracking Software
1. Track Multiple Funds
Create and manage unlimited funds—general operating, building, endowment, program-specific, and more.
2. Grant and Donor Restrictions
Tag transactions with fund codes and restrictions. Prevent accidental misuse of restricted dollars.
3. Real-Time Fund Balances
See current balances for every fund at a glance. Drill down into transactions and history.
4. Audit-Ready Reporting
Generate fund-specific reports, statements, and audit trails with one click.
5. Inter-Fund Transfers
Move money between funds with proper documentation and approval workflows.
6. Budget vs. Actual by Fund
Compare budgeted spending to actual expenses for each fund. Spot variances early.
Common Fund Tracking Challenges and Solutions
| Challenge | Solution |
|---|---|
| Mixing restricted and unrestricted funds | Automatic fund tagging and alerts |
| Grant compliance | Fund-specific budgets and reports |
| Audit preparation | Automated audit trails |
| Manual tracking | Centralized fund tracking software |
| Lack of visibility | Real-time dashboards |
How to Choose Fund Tracking Software
- Assess your fund structure: How many funds do you manage? Do you need custom categories?
- Evaluate integration needs: Does the software connect with your CRM, donation platform, and payroll?
- Check compliance features: Look for FASB reporting, grant tracking, and audit readiness.
- Consider scalability: Choose a solution that grows with your organization.
- Request a demo: Test the software with your real-world workflows before committing.
Fund Tracking Best Practices
- Define clear fund categories: Make it easy for staff to code transactions correctly.
- Review fund balances monthly: Catch errors and variances early.
- Document restrictions: Keep records of donor and grant restrictions for every fund.
- Reconcile regularly: Match fund balances to bank statements and reports.
- Train your team: Ensure everyone understands how to use the system.
Alignmint: Accurate Fund Tracking
Alignmint's fund tracking tools ensure compliance and transparency for every dollar you manage. Track restricted and unrestricted funds, automate reporting, and build donor trust.
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