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Best answer April 25, 2021
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Hello, timothysyndromea.
I'd be more than happy to help you sort out the donation from your board member and payment for the application fee.
You can use a clearing account to record the donation and the fee payment. Since your bank isn't involved in the transaction, this is a good way to move funds from the board member's profile to the vendor that handles your 501c3 application.
Here's how to get started:
Creating a clearing account (skip this if you already have this):
- Go to your Chart of Accounts page.
- Click the New button.
- Set the Account Type as Bank.
- Select Cash on Hand as the Detail Type.
- For the name, enter it as "Clearing account" or something similar.
- Click Save and close.
Next, record the donation from the board member. You can do this with a sales receipt, a bank deposit, or a pledge. This article can walk you through the steps: Track funds you receive from donors in QuickBooks Online.
Make sure to deposit the funds to the clearing account you created.
Now, you'll want to pay the 501c3 application fee using the clearing account. Depending on how you received the application fee, you can do it through an expenditure transaction, through a bill, or a check.
Simply click the + New button, then select Bill, Expenditure, or Check.
Use the clearing account (it should have a balance from the donation) to pay the application fee.
Regarding the accounts that you'll be using for these transaction, I would recommend consulting an accountant. They'll guide you on what expense and income accounts are appropriate to track the donation and payments.
Need to work on other areas in QuickBooks? Our guides can help you manage your lists, reconcile your accounts and more. Check them out in our general articles list page.
I'm willing to help you out if you have more questions about managing your donations. Encountered other obstacles while working in QuickBooks? Please let me know and I'll help you get back up.
Hello, timothysyndromea.
I'd be more than happy to help you sort out the donation from your board member and payment for the application fee.
You can use a clearing account to record the donation and the fee payment. Since your bank isn't involved in the transaction, this is a good way to move funds from the board member's profile to the vendor that handles your 501c3 application.
Here's how to get started:
Creating a clearing account (skip this if you already have this):
- Go to your Chart of Accounts page.
- Click the New button.
- Set the Account Type as Bank.
- Select Cash on Hand as the Detail Type.
- For the name, enter it as "Clearing account" or something similar.
- Click Save and close.
Next, record the donation from the board member. You can do this with a sales receipt, a bank deposit, or a pledge. This article can walk you through the steps: Track funds you receive from donors in QuickBooks Online.
Make sure to deposit the funds to the clearing account you created.
Now, you'll want to pay the 501c3 application fee using the clearing account. Depending on how you received the application fee, you can do it through an expenditure transaction, through a bill, or a check.
Simply click the + New button, then select Bill, Expenditure, or Check.
Use the clearing account (it should have a balance from the donation) to pay the application fee.
Regarding the accounts that you'll be using for these transaction, I would recommend consulting an accountant. They'll guide you on what expense and income accounts are appropriate to track the donation and payments.
Need to work on other areas in QuickBooks? Our guides can help you manage your lists, reconcile your accounts and more. Check them out in our general articles list page.
I'm willing to help you out if you have more questions about managing your donations. Encountered other obstacles while working in QuickBooks? Please let me know and I'll help you get back up.
