Liability account

Good day, AwesomeBears.

You can either create a sales receipt to receive the donations. Here's how:

1. Go to the Customer Center.
2. Click New transaction, then select Sales Receipt.
3. Select the name of the donor in the Customer field.
4. In the Item column, choose an item that corresponds to the type of donation. You can use a Service Item if you haven't set it up. Use this article as a guide: Add, edit, and delete items.
5. Enter the amount of the donation, then add any other details. 

If you have a Non-profit version of QuickBooks, you can follow these steps to run a report about the donations that you've recorded:

1. Go to the Reports menu and select Report Center.
2. Click Nonprofit.
3. Select the report that you want to run.

Let me know if you need anything else.

I don't believe that I did very well at asking my question...here's a little more detail:

Our organization has started a capital funding campaign and is accepting donations towards a project. 

Should I be entering funds received as a credit to "Campaign" liability with a deposit?  Or should the deposit be as income and a corresponding journal entry to add to this "liability" (and what is the offset)?

Then when we use the money, would the transaction be a debit to the "Campaign" liability and offset by the expense account?

Hello AwesomeBears,

Did you ever get an answer to this question? I have the exact same question and can't seem to find the right answers.