25 - How to Transfer Between Funds

What is a Fund Transfer?

A fund transfer records moving money from one fund to another — for example, moving leftover money from a completed charity fund into the general fund. It updates both funds’ balances and creates a record, without treating the move as new income or an expense.

Before You Begin

You’ll need:

At least two funds set up for your local (see “How to Create and Manage Funds”)
The amount and date of the transfer
Local financial write access

Getting Started / How to Access

Option A: From the Income & Expenses page

Go to your local’s dashboard and click the Income & Expenses tab.
On the Funds card, click the menu icon and select Record Fund Transfer.

Option B: From the Fund Transfers list

From the Funds card, click Fund Transfers in the menu (or open the full list directly).
Click the + button in the card header.

Recording a Transfer

Fill out the form:

Field	What to Enter
From Fund	The fund the money is leaving.
To Fund	The fund the money is going into. Must be different from the From Fund.
Date	The date the transfer took place. Defaults to today.
Amount	The dollar amount being transferred. Must be greater than zero.
Memo (optional)	A note about the reason for the transfer, such as “Closing out the 2025 gala fund.”

Click Save.

You’ll see a confirmation that the transfer has been recorded, and both funds’ balances update immediately.

How the Transfer Appears in Both Ledgers

The transfer shows up in both funds’ ledgers:

In the From Fund’s ledger, it appears as a transfer out, reducing that fund’s balance.
In the To Fund’s ledger, it appears as a transfer in, increasing that fund’s balance.

Click the amount in either ledger to see a summary: the date, both funds involved, the amount, the memo, and who recorded it.

Voiding a Transfer

Go to the Fund Transfers list.
Find the transfer and click the cancel icon in its row.
Confirm when asked “Are you sure you want to void this transfer?”

A voided transfer is shown with a line through it and no longer counts toward either fund’s balance. Voided transfers can’t be edited or restored — record a new transfer if you need the money moved after all.

Tips

Confirm both funds before saving. Selecting the wrong fund is an easy mistake — review the From and To funds once more before clicking Save.
Fund transfers don’t affect your Profit and Loss Report. Moving money between your own funds isn’t income or an expense.

Troubleshooting

Q: I don’t see the fund I want in the From or To dropdown. A: Only active funds appear in the transfer form. Check whether the fund has been deactivated (see “How to Create and Manage Funds”).

Q: M2 won’t let me save a transfer dated before a fund’s starting balance. A: A transfer can’t be dated on or before either fund’s starting balance date. Use a later date, or correct the fund’s starting balance date if needed.

How to Create and Manage Funds
How to View a Fund Ledger
How to Transfer Between Bank Accounts
How to Create a Disbursement Authorization

Glossary

Local — The individual unit within your organization where members hold their primary membership. Depending on your organization, this might correspond to a lodge, chapter, local committee, or similar body.