Noncash income for a nonprofit

info4ruth1 · ‎March 31, 2020

my client frequently pays for items out of her pocket and I need to record it as a non-cash donation. I found instructions that discussed creating a cash / non-cash equivalent account. However, when I go to the chart of accounts, new - it is not an option.

hopefully, my message will not be deleted this time.

AileneA · ‎March 31, 2020

Hello, @info4ruth1.

Thank you for reaching out to the Community. Don't worry I am here to help you sort this out.

First, we need to check the set up of your account, to make sure its under non profit account. This will track as revenue and expenditures instead of expenses. I'll guide you how to modify your account by following these steps below:

Change customers to donors:

Go to the Gear icon, then select Account and Settings.
Tap Advance on the left pane.
Under Other preferences, click Pencil icon.
Drop-down arrow from the Customer label, then press Donors.
Click Save, then Done.

Change income and expenses to revenue and expenditures:

Go to the Gear icon, then select Account and Settings.
Tap Advance on the left pane
From the Company type, click the Pencil icon.
In the Tax form drop-down arrow, select Nonprofit organization (Form 990).
Hit Save and Done.

Once done, you'll want to create an account by clicking the Chart of account.

Here's how:

Click the Accounting and choose Chart of Account.
Press New.
From Account Type drop down arrow and choose either Revenue or Expenditures.
From the Details Type drop-down arrow and select the specific account.
Under Name Put it as Non Profit Account. Description is optional.
Click Save and Close.

I've added an article for more visual guidelines on how to create a Non profit Account: Configure an account for a non-profit organization.

Please let me know how it go, I want to ensure that you be able to configure an account. Have a great day!

View solution in original post

info4ruth1 · ‎April 02, 2020

This was very helpful in the first step.

The second step was already done - we are set up as a nonprofit

The third step did not take me to the option for a cash equivalent account. I am trying to record in-kind donations.

Thank you for the help so far!

View solution in original post

AileneA · ‎March 31, 2020

Hello, @info4ruth1.

Thank you for reaching out to the Community. Don't worry I am here to help you sort this out.

First, we need to check the set up of your account, to make sure its under non profit account. This will track as revenue and expenditures instead of expenses. I'll guide you how to modify your account by following these steps below:

Change customers to donors:

Go to the Gear icon, then select Account and Settings.
Tap Advance on the left pane.
Under Other preferences, click Pencil icon.
Drop-down arrow from the Customer label, then press Donors.
Click Save, then Done.

Change income and expenses to revenue and expenditures:

Go to the Gear icon, then select Account and Settings.
Tap Advance on the left pane
From the Company type, click the Pencil icon.
In the Tax form drop-down arrow, select Nonprofit organization (Form 990).
Hit Save and Done.

Once done, you'll want to create an account by clicking the Chart of account.

Here's how:

Click the Accounting and choose Chart of Account.
Press New.
From Account Type drop down arrow and choose either Revenue or Expenditures.
From the Details Type drop-down arrow and select the specific account.
Under Name Put it as Non Profit Account. Description is optional.
Click Save and Close.

I've added an article for more visual guidelines on how to create a Non profit Account: Configure an account for a non-profit organization.

Please let me know how it go, I want to ensure that you be able to configure an account. Have a great day!

info4ruth1 · ‎April 02, 2020

This was very helpful in the first step.

The second step was already done - we are set up as a nonprofit

The third step did not take me to the option for a cash equivalent account. I am trying to record in-kind donations.

Thank you for the help so far!

ShiellaGraceA · ‎April 02, 2020

Hello @info4ruth1,

Bank and cash on hand are the same as a cash equivalent. You'll want to choose either of them as your account type.

Please refer to the above steps for details. I'm also adding these handy articles for your reference. Here are the links:

Should you have other questions or concerns about your chart of accounts, please let us know. The Community is always here for you. Thanks for coming in and have a good day.

info4ruth1 · ‎April 12, 2020

It is very confusing that you have recent examples which do not match up.

now I guess I put these transactions through the in-kind donations account

info4ruth1 · ‎April 13, 2020

so our "donor" buys items and submits the invoices such as Amazon, Olive Garden, Storage, etc. If I record it as an expenditure than our cash account is negative. It is not a pledge.

Please advise.

MarsStephanieL · ‎April 13, 2020

Hi there, info4ruth1.

You can set up an account for in-kind donations received first in the Charts of Accounts. Before performing these steps, you should check with your accountant to see if a donation should be recorded in your books as an in-kind donation.

Here's how to set up an account:

In your QuickBooks Online (QBO) company, select the Gear icon and choose Chart of Accounts.
Click the New button.
Under Account Type, select Income.
Under Detail Type, select Non-Profit Income.
Enter a name such as In-Kind Contributions and click Save.

Next, set up a clearing account.

Select the Gear icon and choose Chart of Accounts.
Click New.
Under Account Type, select Cash and cash equivalents.
Under Detail Type, select Cash and cash equivalents.
Enter a name such as In-Kind Clearing.
Hit Save.

In receiving the donation or contribution, please follow the steps below:

Click the Hamburger icon and click + New.
Select Sales Receipt.
Enter the donor name and record the date of the donation.
Select the appropriate Product/Service and add any additional description.
Enter the fair market value (FMV) of the donation in the Amount field. Note: Consult your accountant if you are unsure of what amount to enter.
In the Deposit to drop-down menu, select In-Kind Clearing bank account you created earlier.

For more information, you can check the help article provided by my colleague ShiellaGraceA.

Count me in if you have any other concerns. I'll be here to help. Take care.

CLM-Optimist · ‎May 05, 2021

This RIGHT HERE is the source of some of the confusion. Your methodology for recording in-kind donations says VERY clearly to create a new account:

Under Account Type, select Cash and cash equivalents.

But there IS NO SUCH ACCOUNT TYPE, at least not in QB Online.

PLEASE update your descriptions to reflect what's actually in the software!

Thanks.

LollyNino_C · ‎May 06, 2021

Hello there, @CLM-Optimist.

I understand that you are not able to see the Account Type on your QuickBooks Online account.

Steps and screenshots are provided above by one of my peers @AileneA. However, if you are not able to see it on your end, I'd recommend you clear your browser's cache. Your browser’s cache saves files on your computer to load websites faster on your next visit. But over time, it also gets outdated which can cause issues.

Follow the steps to clear cache for your browser:

On your computer, open Chrome.
At the top right, click More
Click More tools Clear browsing data.
At the top, choose a time range. To delete everything, select All time.
Next to "Cookies and other site data" and "Cached images and files," check the boxes.
Click Clear data.

Most of the time, you only need to clear your browser's cache. But if you keep having the same problem even after doing that, you can clear Intuit-specific cookies. This helps refresh website preferences that might be causing problems when you use QuickBooks.

Please refer to the above steps for details. I'm also adding these handy articles for your reference. Here are the links:

I'd also suggest contacting our Customer Care Support, so you'll be added to the list of affected users. Thay way, you'll be notified whenever an update is available. Reach them through this link: Contact Phone Support.

In case you need to learn some tips and best practices in managing your account effectively, visit our Help Articles page for your reference. We have articles there that you can read for your future guidance.

Please know that you're always welcome to post if you have any questions about your account. I'm here to help. Wishing you and your business continued success.

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Noncash income for a nonprofit