We are new to Financial Edge and I do not understand the due to/due from feature. Could someone explain?

If you have more than one fund, (i.e. Unrestricted Fund, Temporary Restricted Fund) but only one checking account, you would use the due to/from accounts to record all transactions that the UR Fund owes to the TR Fund for donations received and money the TR fund owes the UR fund for expenses paid. We use one account that nets the amounts rather than using one Due To account and one Due From account.

That is one option, but it sure creates a lot of interfund entries. Another option is to keep the restricted vs unrestricted designations at the project level and keep both in one fund in the basic chart of accounts. The result is that the fund balances will have the correct amounts by category of restricted vs unrestricted, but all assets will basically be shared (the claim to those assets basically being reflected in the fund balance.