amy21
Level 1

How to record grant income

We received a grant in which the grant holder pays for some expenses on our behalf and we also pay an "in-kind" portion.  All of the expenses - whether paid by our nonprofit or by the grant holder - need to be also recorded as "Grant Income" according to our auditor.  The auditor's notes, "During the year, the Organization received income and fixed assets as a beneficiary of a grant.  The income and corresponding asset were not recorded in the general ledger.  We believe that this practice can result in the financial statements being materially misstated.  We therefore recommend that the income and corresponding asset or expense be recorded when money has been paid on the grant."  I understand the "why", I am just unsure how I go about recording it in QB.  

Charies_M
Moderator

Other questions

Hello there, amy21.

 

I'm glad you came here for support. It's my pleasure to help you record a donation in QuickBooks Desktop. Let's first setup a new item for the donation.

 

Let me walk you through how below:

  1. Go to Lists.
  2. Click Item List.
  3. Click the Item drop-down arrow at the bottom of the list and select New.
  4. Click the Type drop-down arrow and choose Service.
  5. Click the Account drop-down arrow and choose the corresponding account.
  6. Choose a name that matches the corresponding account; for example, a Donation item associated with the Grants income account.

Once done, you can now record donations in QuickBooks by using a sales receipt.

 

Here's how:

  1. Go to Customers.
  2. Click Enter Sales Receipt.
  3. Click the Customer:Job drop-down arrow and choose the donor/grant.
  4. Enter the amount of the donation that is being applied to the fund or project (class), as specified by the donor.
  5. If Deposit To appears at the bottom of the form, click the Deposit To drop-down arrow and choose the checking account to which you want to make the deposit.
  6. Click Save&Close.

In case you want to track donations, you can definitely run a few of the following reports in QuickBooks Desktop.

  • Budget vs. Actual by Donors/Grants.
  • Donor/Grants Report.
  • Donor Contribution Summary.
  • Budget vs. Actual by Programs/Projects.

You may also want to check out this article to learn more about customizing reports in QuickBooks: Customize reports in QuickBooks Desktop.

 

That should keep you on the right track. Let me know if you have follow-up questions about customer recording donations and I'd be glad to clear things up for you.

CJDay
Level 3

Other questions

Where do I find the Budget vs Actual by Donor/Grant report?

JonpriL
Moderator

Other questions

Hi there, @CJDay!

 

Your Budget vs Actual by Donor/Grant report is a special category under Nonprofit Reports. I'm here to help you accomplish this.

  1. Go to Reports.
  2. Select Nonprofit Reports.
  3. Click Budget vs Actual by Donor/Grant.

In addition, here's a screenshot for your visual reference.

Lastly, I've got you this helpful article in case you wanted to customize your report: Customize reports in QuickBooks Desktop.

 

If there's anything else that I can help you with, let me know in the comments down below.  I'll be happy to help.

CJDay
Level 3

Other questions

I have Premier 2019 and the cannot find the Nonprofit Reports on the Report menu.

Rasa-LilaM
QuickBooks Team

Other questions

Thanks for coming back to the Community, @CJDay.

 

Pulling up the Budget vs Actual by Donor/Grant Report has never been easy. It will only take a few minutes of your time.

 

Let’s go to the Industry Specific option to access it. Here’s how:

 

  1. Go to the Reports menu and select Industry Specific.
  2. From the options choose Nonprofit Reports and then tap Budget vs Actual by Donor/Grant.

I'm adding a screenshot on how it should look like after following these steps.

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If you want to tailor the data displayed on the statement, use the Customize Report button. The following guide outlines the instructions on how to use the following tabs: Display, Filters, Headers/Footers, and Fonts & Numbers: Customize reports.

 

You can also bookmark this article for future reference: Create a budget or forecast in QuickBooks Desktop.

 

Stay in touch if you need assistance while working in QuickBooks. Please know I'm always ready to help and make sure you're taken care of. Enjoy the rest of the day.

CJDay
Level 3

Other questions

I do not have the Industry Specific option (Premier 2019 Desktop)

 

MirriamM
Moderator

Other questions

Thanks for keeping us updated, CJDay.

 

Some options on the report won't show in QuickBooks Desktop if the set up of your account is General Business.

 

To resolve this, you'll need to toggle to a different edition and choose your industry. Here's how:

  1. Go to the Help menu at the top. 
  2. Select Manage My License.
  3. Pick Change to a Different Industry Edition.
  4. Choose the industry edition you wish to switch to.

Once done, try to run the report again. 

 

If you need anything else, let me know. I'll be here for you. Have a great day!