QB for Non-Profit

Thanks for reaching out to us, JL185.

Currently, QuickBooks doesn’t have an option in place to classify Donors into one or several classifications. However, we can use the class tracking feature to help you track classes to report account balances for each department.

To enable class tracking in QuickBooks Desktop, here's how:

1. Go to Edit menu.
2. Click Preferences.
3. Choose Company Preferences.
4. Click Accounting.
5. Fill in the box for Use class tracking for transactions.
6. Click Ok.

I've added an article to learn more about using class tracking in QuickBooks: How to Use Class Tracking in QuickBooks.

I'll be right here if you need help with something else or questions about classifying donors in QuickBooks. I'd be happy to help.

The Reason for the donation is managed by making and using different Service items. On my donation form, you would list what I paid you for. They all link to Donation income, but now you can run Sales by Item and Sales by Customer with Item info.

For Edit Customer, you don't typically track What they pay for. You are tracking their Name Info. Yes, you can use Customer Type, Job Type, and even Subtypes, but that isn't as useful as Items. Items are the Financial event. Customer Type, for instance, is Donor, Corporate Sponsor, Grantor, or Member, for example. Or, Gold Level vs Silver Level vs Lifetime Sponsor.

Yes, you can then filter many reports on Customer type, such as Item Profit, filter on one Customer Type = all Corporate Sponsors.

And you would also be using Class Tracking, to manage Programs and Purposes. For instance, Class = Foodbank; donation service item = Money, or Donation In Kind, even.

I recommend the book Running QB for NonProfits, by Kathy Ivens. This is all explained in that book.