Most non-profits / charities have various fund allocations within a central bank account and need a process to monitor the "balance" of these designated funds. The "Projects" function cannot completely do this task, particularly if funds are allocated after the money is already deposited within the bank account. Projects only works when either an income or expense transaction is recorded. Fund allocation works similar to a "sub bank account." Everything is still contained within the physical bank account, but there is a way to list the subtotals of the various funds. Ideally, this could be reported on the balance sheet report, since it is technically an asset.
YES.... It would be really helpful to see the balance of funds for a particular project's expenses and funds received.