Designated money from a donor

Hello HughsonCofC,

Yes, creating sub-accounts for the savings account is possible. These sub-accounts can be used when you record the sales receipts. Here's how to create the sub-accounts:

1. Click Lists at the top menu and select Chart of Accounts.
2. Right-click on any of the accounts and select New.
3. Select Bank and click Continue.
4. Enter the Account Name.
5. Mark the tick box for Subaccount of and select the savings account.
6. Click Save & Close.

Use the sub-accounts when you create the sales receipts for the received donations.

Meanwhile, the breakdown and the summary of the transactions can be displayed through the Chart of Accounts or the Transaction Detail by Account report.

1. Click Reports at the top menu.
2. Select Accountant & Taxes > Transaction Detail by Account.
3. You can click the Customize Report button to further organize or filter the report.

Saying that that'd be the best way to separate the donations isn't for us to decide. I'd recommend consulting your accountant about this. They can give you other option or the best one that suits your business setup.

We'll be right here if you require additional assistance. Have a great day!

Thanks! Without asking my accountant, I am learning that are always 3 or more ways to do something like what I suggested in QB. Can you tell me another easy way to set apart designated money in QB? 

Thanks for getting back here in Community @HughsonCofC,

I suggest using the class tracking feature since classes can separate transactions related to types of business.

Let me walk you through on how to set up and use class tracking in QuickBooks Desktop. Follow these steps:

Step 1: Turn on the class tracking feature

1. Go to the Edit menu.
2. Select Preferences.
3. Choose Accounting, then click the Company Preferences tab.
4. Put a checkmark in the Use class tracking for transactions checkbox.
5. If you want a reminder when you haven't assigned a class, select the Prompt to assign classes checkbox.
6. Select OK.

You can use this screenshot for your reference

Step 2: Set up class categories for accounts

1. Go to the Lists menu.
2. Select Class List.
3. From the Class ▼ drop-down button, select New.
4. Enter the class name.
5. If it's a subclass, select the Subclass of checkbox and find the class it's under in.
6. Select OK to add it.

I've also provided screenshots for your references.

For your future help, refer to this link for classes tracking report: Filter, sort or total reports by Class.

If you have follow-up questions, don't hesitate to leave a comment below. Have a wonderful day!

If I am setting up classes to define my various incomes. I have income from an offering plate, from a special contribution for the roof, and income designated for the youth. When I set up my classes, which I now know how to do (thank you!), what is my sub account? Is it the account that is on my chart of accounts that will list out these specific expenses for that income? so for example, "youth group" is on the "expense" charts of accounts. The money is for this category. Would I label youth group as the sub account for that class?