Learn how to track fund donations you receive via credit card, bank transfer, or as cash in QuickBooks Online.
If you run a nonprofit organisation, it’s easy to keep tabs on the money you receive from your donors. Depending on how you receive the donation, you can record and track it as a sales receipt or deposit. We’ll show you how.
Step 1: Create an account for fund donations
Create a revenue account in your chart of accounts for tracking the money you receive from donors. If you already have one, you can skip this step.
- Follow these steps to create a revenue account.
- Make sure to select Revenue as the detail type.
- You can call this account “Non-Profit Revenue.”
Step 2: 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.
- Follow these steps to create a non-inventory item.
- You can call this item “Non-Profit Income.”
- Don’t forget to use the revenue account you set up in "Step 1."
Step 3: Add your donor as a customer
If you haven’t already, add the donor as a customer in QuickBooks.
Step 4: Track the fund donation
Tip: Show your appreciation to your donors when you send a receipt of their donation. You can customise the thank you letters you email.
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.
- Create a sales receipt for the donation.
- Select Customise, then choose your donation template.
- Complete receipt details. Make sure to select the donor and donation item you set up.
- Select the Payment method ▼ dropdown, then choose how you receive the donation.
- 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 organisation, you can create a bank deposit instead.
- Create a bank deposit for the donation.
- Make sure to select the donor and the revenue account you set up for donations.