How can I record paypal fees for a nonprofit donation

Angela W · ‎December 17, 2020

I have the nonprofit version of the Quickbooks Desktop Premier version. I have a bank account set up for the Paypal account. I use the "Donations" function under Customer / Vendors. I have reviewed ways online (youtube, etc) on how to record the donations with paypal fees. I record the donation as item "Contribution: other charge" and on the 2nd line I list 'paypal fees' as a negative (item listed as paypal fee). The balance on the invoice shows the correct amount of the deposit after the fee is subtracted, but when it transfers to the Paypal account register, it shows the original donation amount as a "payment" and another line underneath with the "net" deposit as a credit. So there is a negative balance in the amount of the fee. As a result my Paypal register will not balance. Why is it listing the donation as a "payment"?

JamesM · ‎December 18, 2020

Hi Angela W,

Recording the PayPal fees for a nonprofit donation is a good exercise for keeping your books clean. I'd be happy to steer you in the right direction so you can focus on doing the things you enjoy.

To ensure accuracy in your books, I recommend contacting an accounting professional to get more info on recording the transactions. Doing this will help prevent any future discrepancies in your books. If you're not in contact with one, I encourage you to search for one on our website using this link here. In the meantime, check out this helpful article with more info on: How to record donations or charitable contributions.

I'll also leave this question here so other accounting professional members can chime in. Let me know if you have other questions. I'm here to help.

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How can I record paypal fees for a nonprofit donation

How can I record paypal fees for a nonprofit donation

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