Non-Profit

Capital Campaign Expenditure — Construction Draw

Using restricted capital campaign funds to pay a construction contractor.

Account NameTypeDebit ($)Credit ($)
Construction in Progress (Building)Asset (+)300,000.00-
Cash (Restricted Capital Funds)Asset (-)-300,000.00
Net Assets Released (Capital Restriction)Equity (-)300,000.00-
Net Assets Released (Unrestricted)Equity (+)-300,000.00

💡 Accountant's Note

As capital campaign funds are spent on the building, the restriction is released. The cash decreases and the CIP asset increases. Restrictions are released in proportion to spending.

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