Track funds you receive from donors in QuickBooks Online

Learn how to track fund donations you receive via credit card, bank transfer, or as cash in QuickBooks Online.

If you run a nonprofit organization, it’s easy to keep tabs on the money you receive from your customers (referred to as donors). Depending on how you receive the donation, you can record and track it as a sales receipt, bank deposit, or an invoice.

Although you can change the form name to Donation, or any custom name you wish, from the Custom form styles module, the dropdown menus within QuickBooks Online will still reflect as Invoice, Estimate, or Sales receipt.

Note: Received in-kind donations instead? Here’s how to track in-kind donations, like office supplies or furniture.

Step 1: Change your account type to nonprofit

You can change your QuickBooks Online account type to better fit your tracking needs. If you haven’t already:

1. Go to Settings ⚙ and select Account and settings.
2. Select Advanced.
3. In Company type, select the edit icon .
4. From the Tax form dropdown ▼, select Nonprofit organization.
5. Select Save, then select Done.
6. Sign out and sign back in to see the changes.

Tip: Show your appreciation to your donors when you send a receipt of their donation or invoice. You can customize the thank you letters you email.

Step 2: Create an account for fund donations

Create an income account in your chart of accounts for tracking the money you receive from donors. If you already have one, you can skip this step.

1. Follow these steps to create an income account.
2. Make sure to select Income as the account type and Non-Profit Income as the detail type.
3. You can call this account “Fund donations.”

Step 3: Create a fund donation item

When you create a sales receipt, you need to select a product or service item. Since you only receive money, you can set up a non-inventory part instead.

Note: You don't have to create a new item every time you receive a fund donation. In most cases, you only need one item to track fund donations from different donors.

1. Follow these steps to create a non-inventory item.
2. You can call this item “Fund donations.”
3. Don’t forget to use the income account you set up in "Step 2."

Step 4: Add your donor as a customer

If you haven’t already, add the donor as a customer in QuickBooks.

Step 5: Track the fund donation

As an invoice

If your donor promises to donate at a later date, you can record an invoice.

First, record the donation.

1. Select + New, then select Invoice.
2. Select Customize, then select your donation template.
3. Make sure to select the donor and the donation item you set up.
4. Select Save and close or Save and send if you want to email your donor a receipt of their invoice.

Once you receive the donation, record the receipt.

1. Select + New, then select Receive payment.
2. Select the donor from the Customer dropdown ▼ and update the Payment date.
3. Select the Payment method ▼ dropdown, then select how you receive the donation.
4. Select the Deposit to ▼ dropdown, then select where the donation is going.
5. Select the appropriate invoice, then select Save and close or Save and send if you want to email your donor a receipt of the donation.

As a sales receipt

You can create a sales receipt if you receive the donation right away. Then, if you need to, you can also send the sales receipt to the donor as a statement of their donation.

1. Create a sales receipt for the donation.
2. Select Customize, then select your donation template.
3. Complete receipt details. Make sure to select the donor and donation item you set up.
4. Select the Payment method ▼ dropdown, then select how you receive the donation.
5. Select Save and close or Save and send if you want to email your donor a receipt of their donation.

As a bank deposit

If you simply need to record the money donated to your organization, you can create a bank deposit instead.

1. Create a bank deposit for the donation.
2. Make sure to select the donor and the income account you set up for donations.