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Myrna3
Level 3

Charity receipt for non cash donations

I have a charity that received a donation of service work on their parking lot. Instead of charging the charity for the work, the owner of the company had them write a receipt for a donation. How do I enter this in the charities books?

Solved
Best answer November 14, 2022

Best Answers
Jen_D
Moderator

Charity receipt for non cash donations

It's great to have you here, @Myrna3.

 

I can help you share some insights on how to record non-cash donations in QuickBooks Online.

 

You're on the right track with adding the donor as a customer in QuickBooks. Your next move is to create appropriate accounts to track the donations in your books. After that, you're ready to record the transactions.

 

I've listed the things you need to do below, so it's easier for you to follow.

 

Create an account for fund donations:

 

  1. From the Accounting tab and select Chart of Accounts.
  2. Select New.
  3. In the Account dialog, select Income from the Account Type ▼ drop-down menu.
  4. From the Detail Type ▼ drop-down menu, select Non-Profit Income.
  5. Enter a name (for example, In-Kind Contributions) for the account.
  6. Select Save and Close.

 

Create a clearing account:

 

  1. Go to Settings ⚙ and select Chart of accounts.
  2. Press New.
  3. In the Account dialog, select Bank from the Account Type ▼ dropdown menu.
  4. From the Detail Type ▼ dropdown menu, select Chequing.
  5. Enter a name (for example, In-Kind Clearing) for the account.
  6. Click Save and Close.

 

Create a donation item:

 

  1. Go to Settings ⚙ and select Products and Services.
  2. Select New and then Service.
  3. In the Product/Service information panel, select the type of product or service.
  4. Add a Name and Description suitable for sales, pledge, or donation receipts. 
  5. From the Income account ▼ drop-down menu, select the income account you set up in "Step 1."
  6. Under Purchasing information, select the I purchase this product/service from supplier checkbox.
  7. Select Save and Close.

 

You can track the donation using the steps in the Record in-kind donations section of this article: Set up and record in-kind donations

 

Let me know if you have any questions about this donations topic or need further help with the steps. I'll be right here to assist you any time.

View solution in original post

2 Comments 2
Jen_D
Moderator

Charity receipt for non cash donations

It's great to have you here, @Myrna3.

 

I can help you share some insights on how to record non-cash donations in QuickBooks Online.

 

You're on the right track with adding the donor as a customer in QuickBooks. Your next move is to create appropriate accounts to track the donations in your books. After that, you're ready to record the transactions.

 

I've listed the things you need to do below, so it's easier for you to follow.

 

Create an account for fund donations:

 

  1. From the Accounting tab and select Chart of Accounts.
  2. Select New.
  3. In the Account dialog, select Income from the Account Type ▼ drop-down menu.
  4. From the Detail Type ▼ drop-down menu, select Non-Profit Income.
  5. Enter a name (for example, In-Kind Contributions) for the account.
  6. Select Save and Close.

 

Create a clearing account:

 

  1. Go to Settings ⚙ and select Chart of accounts.
  2. Press New.
  3. In the Account dialog, select Bank from the Account Type ▼ dropdown menu.
  4. From the Detail Type ▼ dropdown menu, select Chequing.
  5. Enter a name (for example, In-Kind Clearing) for the account.
  6. Click Save and Close.

 

Create a donation item:

 

  1. Go to Settings ⚙ and select Products and Services.
  2. Select New and then Service.
  3. In the Product/Service information panel, select the type of product or service.
  4. Add a Name and Description suitable for sales, pledge, or donation receipts. 
  5. From the Income account ▼ drop-down menu, select the income account you set up in "Step 1."
  6. Under Purchasing information, select the I purchase this product/service from supplier checkbox.
  7. Select Save and Close.

 

You can track the donation using the steps in the Record in-kind donations section of this article: Set up and record in-kind donations

 

Let me know if you have any questions about this donations topic or need further help with the steps. I'll be right here to assist you any time.

Myrna3
Level 3

Charity receipt for non cash donations

Thank you. That's perfect.

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