Buckets, Funds & a Splash of Clarity – Charity Accounting Made Simple

Published:8 April 2025

When it comes to charity finance, even seasoned professionals can find themselves scratching their heads over fund accounting. For new trustees, advisers, or charity finance managers, navigating the Charity SORP and trying to understand what goes where (and why!) can be overwhelming.

In the latest episode of The Accidental Expert, Aedon CEO Paul Foden breaks down the concept of fund accounting in a way that’s easy to grasp—and yes, he uses colourful buckets to do it.

Here’s a taster of what you’ll learn:

Unrestricted vs Restricted Funds – Where your income lands depends on what it can be used for. Paul explains how to tell the difference, and why some funds come with conditions attached.
Buckets, Buckets Everywhere – From legacies to grants, each type of income finds its way into a different fund (or “bucket”) depending on donor restrictions. The same goes for activities—from fundraising to charitable delivery and governance.
Activities & Reporting – Once income is in the right fund, it needs to be spent correctly too. Fundraising campaigns, projects, support costs—they all need to be tracked against the right activity. And at the end of the year, that activity data feeds into the Statement of Financial Activities (SoFA) and your Balance Sheet.
The Big Picture – It’s not just about compliance. Good fund accounting gives your charity clear insight into how money is being used—and builds donor trust.

Paul’s video isn’t just informative—it’s genuinely watchable, especially if you’re not from an accounting background. If you’ve ever found yourself lost in a spreadsheet or daunted by a finance report, this is the place to start.

📺 Watch “Fund Accounting Explained (Without the Jargon)” here.
💡 See how Aedon.Charities supports better reporting and transparency.

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