CherryMoney University Training: accounting, invoices, VAT, expenses and AI finance workflows
CherryMoney Training
Log in Open account

Module 10

Charity, VCSE, Grants And Restricted Funds

Teach fund accounting concepts through charity and VCSE workflows.

Start module Simulator practice Sign in to take training

Learning Goals

By the end of this module, learners should be able to complete the workflow in CherryMoney and explain the accounting reason behind each important step.

  • Distinguish unrestricted and restricted funds.
  • Record grant income and funder requirements.
  • Tag expenses by project, campaign, donor and restricted fund.
  • Prepare donor and stewardship reports.

Lesson Plan

Use these lesson blocks for lecture delivery, live demo and class discussion.

VCSE structures

CIO, CIC, CLG, charitable trust and unincorporated association records have different identity and governance needs.

Restricted funds

Restricted income must be spent according to funder or donor restrictions and tracked separately from unrestricted funds.

Stewardship reporting

Donor and grant reporting explains how money was received, used and evidenced.

Step-By-Step Lab

This is the student-facing sequence for the practical class. Complete the steps in order, then capture the evidence listed below.

  1. Open the VCSE organisation profile and confirm the structure: CIC, CIO, CLG, trust or unincorporated association.
  2. Create a grant or donor income record with restrictions and reporting notes.
  3. Create project or campaign tags linked to the grant purpose.
  4. Enter expenses and tag them to the correct project and restricted fund.
  5. Review whether restricted money has been used only for the allowed purpose.
  6. Export the donor or stewardship report for trustee or funder review.

Classroom Run Sheet

Use this structure to teach the module in a repeatable classroom or lab session.

Explain
Explain this module Introduce the accounting concept first: customer, invoice, VAT, expense, fund, role or audit trail.
Demonstrate
Demonstrate this module Trainer performs the workflow once in CherryMoney using a projected simulator account.
Practise
Practise this module Students complete the same workflow in their own VM tenant using seeded records.
Review
Review this module Students compare system outputs with expected accounting treatment and discuss errors.
Evidence
Evidence this module Students submit screenshots, exports, PDFs or short explanations for assessment.

Simulator Practice

These are the VM practice tasks for this module. They are written as student-facing tasks and can later be wired into a guided simulator checklist.

Practice Brief

  1. Set up a CIC or charity demo organisation.
  2. Record one restricted grant and one unrestricted donation.
  3. Tag expenses to a project and restricted fund.
  4. Export a donor or stewardship report for trustee review.

Knowledge Check

Use these questions for in-class review, a short quiz or a reflective workbook entry. Answers are hidden by default — open each one to check your work.

  1. Q1 What is the difference between restricted and unrestricted funds? Answer

    Restricted funds must be spent only according to a funder's or donor's specific purpose; unrestricted funds can be used for general running costs.

  2. Q2 Why do grants need project or fund tagging? Answer

    So spending against a grant can be traced back to its restriction and reported to the funder or trustees accurately.

  3. Q3 What should a stewardship report help trustees or funders understand? Answer

    How the money was received, used and evidenced — proof that restricted funds were spent on the purpose they were given for.

Assessment And Evidence

Students should submit proof that the workflow was completed and a short explanation of the decisions made.

Student Evidence

  • Submit a fund report and explain whether the fund is restricted or unrestricted.
  • Explain why charity records need more context than a normal invoice-only business.

Trainer Notes

  • Use a scenario where restricted funds cannot be used for general overheads.

Continue The Course

Move through the modules in order for a complete accounting, invoicing, compliance and AI finance workflow.

Module 8 4 hours

VAT, Cherry Tax And Compliance Checks

Prepare VAT reviews, inspect Cherry Tax calculation inputs, understand current MTD/HMRC boundaries and use compliance prompts.
Module 9 2 hours

Payroll Summary Packs

Prepare payroll review packs where the plan includes payroll features.
Module 11 3 hours

Accountant Workspaces, Governance And Admin Controls

Control role-aware access, accountant client grants, Analytics admin policy, publishing controls, verification and audit trails.
Module 12 3 hours

Banking, Open Banking And Reconciliation

Review connected-bank data, matching and reconciliation while keeping consent, provider and payment-execution boundaries explicit.