The rule for keeping donations and student fees apart: two kinds of money, two ledgers, two sets of responsibility. Mixed in one book, month-end “total received” may balance — but you can no longer say which money went to which purpose. And if any question ever arises about donation money, the record for accountability simply does not exist.
What to verify: record types and duties are separate; accounting policy belongs to the institution
Start by classifying the money:
| Money type | Examples | Record must contain | Who sees it |
|---|---|---|---|
| Student fees | monthly, admission, exam | student, month, amount, receipt | accountant |
| General donations | donors, general fund | donor, date, channel, receipt | muhtamim + accountant |
| Earmarked donations | mosque, orphanage, building | donor + purpose tag | governing council |
| Zakat | a sharri obligation | donor + eligibility note | muhtamim |
The core principle: purpose-earmarked money (zakat, building funds) never mixes into a general pocket — not even “to be returned later”. A purpose tag on every entry removes the opportunity for mixing entirely.
A usable sample: two ledgers, one fictional example
Ledger 1 — student fees (the accountant’s):
| Date | Student | Item | In | Channel | Receipt |
|---|---|---|---|---|---|
| 05-11 | DEMO-012 | November monthly | 500 | bKash | 1024 |
Ledger 2 — donations (the muhtamim’s):
| Date | Donor | Purpose | In | Channel | Receipt |
|---|---|---|---|---|---|
| 05-11 | withheld | orphanage-general | 5,000 | cash | A-102 |
Notice: the same day, the same bank account — yet records live in two places, under two roles. At month-end, adding both ledger totals reconciles the bank balance while purpose-wise reporting stays separate.
Donation-fee separation: workflow steps and limitations
- Write the chart of accounts: income heads, expense heads, funds — every donation purpose is one head.
- Split entry duties: fee entries belong to the office; donation entries follow the muhtamim’s instruction.
- Month-end has three reconciliations: ledger↔bank, ledger↔receipt book, fund-balance↔expense receipts.
- Limitation: petty cash without receipts keeps any ledger incomplete — make the rule “no receipt, no entry”.
Separation: questions to ask before your demo
- Can one donor’s money be split across purposes (as split entries)?
- Does a fund-wise balance report come in one click?
- Can a partial student-fee payment accidentally land in a donation head — does the system prevent it?
To map the financial structure see the fee and finance module, payment integrations on the integrations page, and terminology on the glossary.
Separation FAQ
Does a small madrasa need two ledgers?
If donations exist, yes — size is not the question; the type of money is. Fees-only institutions can live with one ledger.
Can a donor stay anonymous?
The record keeps the name; look for a report option that hides names — accountability inside, publicity outside.
Year-end totals mismatch — where do I look first?
Receipt book ↔ ledger: does every receipt number exist in the ledger? Most mismatches start there.