About Internal and External Funds

This article provides information about internal and external funds.

Funds are pre-defined buckets into which donations are aggregated. Each fund may be given a Fund Number when a New Fund is created. There is no limit to the number of funds that can be created.

Giving encompasses both giving online and physical contributions. In online giving, there are two types of funds that can be created:

Online Funds

Internal Only Funds

The decision between using an internal and external fund depends on the unique circumstances, goals, and priorities of the church. Some organizations may even choose a combination of both, depending on their financial strategy and the nature of the funds. It is critical for leadership to carefully assess their needs and consider the long-term implications of their decision.

An organization that has purchased both Church Manager (CM) and Online Giving (OLG) can utilize both Internal Only Funds and Online Only Funds features.

An organization that has CM includes the Internal Only Funds feature.

An organization that has OLG includes the Online Only Funds feature.

When a new Online Only Fund is created it displays on the public website page. Anyone who can access this website can give to this fund. Every fund has its own page and URL. Organizations can publish the unique link in bulletins, etc.

Organizations may not desire all funds to be shown externally. An organization may want the ability to keep a fund internal for privacy reasons, or the staff may use an Internal Only Fund for physical contributions.

Here are some other reasons an organization might choose to have internal funds or external funds:

Internal Fund:

  1. Control:

    • Internal funds allow the organization to have greater control over the management and allocation of funds. Leadership can decide how the money is used and can tailor it to specific needs within the church community.
  2. Flexibility:

    • An internal fund provides flexibility in terms of fund utilization. The organization can quickly respond to changing needs or emergencies within the congregation without external constraints.

External Fund:

  1. Donor Relations:

    • External funds may involve contributions from external donors or community members. This can strengthen relationships with the broader community and create a sense of shared responsibility for the organization's mission.
  2. Transparency and accountability:

    • External funds may provide a level of transparency and accountability that may be appealing to donors and stakeholders.

Check this out for links to more information on Funds. Funds can be associated with Campaigns and Pledges and can be configured to stand out from other funds as a Featured Fund.

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