Due to/Due From accounts are similar to Payables and Receivables or other liability accounts and maintain a balance at the end of the year that is carried forward to the next year.

Transfer to/from accounts are similar to expense type accounts whose balances are closed into the fund balance account at year end.

You would use due to/from when you wish to maintain a payable/receivable relationship between the funds and the transfer accounts when you wish to affect the fund balance by the amount of the Interfund entry. For specific examples of when you should use transfers vs. due to/due from accounts, you should consult your Certified Public Accountant.