Projects and objectives

Projects and purposes form the organisational framework of the finance module: each transaction is assigned to one of these categories, and this forms the basis for the reports – how much was received for which purpose, and what were the costs for each project?

Projects vs. Purposes

• A project is typically time-limited and has a specific aim: the organ renovation, the summer festival, the anniversary celebration.
• A purpose is a permanent category: general donations, rent, staff costs, insurance.

The distinction is fluid – the important thing is that the structure fits the questions your organisation wants to answer.

Building a good structure

Start small and expand as needed:

1. A few, clear purposes for day-to-day operations (donations, operating costs, …)
2. One project per initiative for which you wish to provide separate accountability
3. Consistent naming – for year-specific projects, include the year in the name (“Summer Festival 2026”)

Why it’s worth the effort

• Transparency: The board can see at a glance how donations are progressing.
• Accountability: For earmarked donations, it is possible to clearly demonstrate what they were used for.
• Planning: Analysis from the previous year provides the best basis for the next budget.

Reports

The financial overview presents the allocated transactions by project and purpose and shows trends over time. A prerequisite for this is the consistent verification and allocation of transactions.