how do you manage recording donations-in-kind received by your organization?

Hi there, Phyllis. I'll guide you on how to record in-kind donations for your organization in QuickBooks Online.

First, let's create an in-kind donation account in your Chart of Accounts. If you already have one, you can skip this process.

Here's how to proceed:

1. Head to the Gear icon, then select Chart of Accounts.
2. Select New, and then enter In-kind donations in the Account name field
3. In the Account type dropdown, select Income.
4. Choose Non-Profit Income in the Detail type dropdown, then hit Save.

Next, let's create a clearing account to record sales receipts and bill payments related to the contributions you receive. It serves as a temporary placeholder to track donation values until the transactions are fully accounted for.

To do so, follow these steps:

1. On the Chart of Accounts page, select New.
2. In the Account name field, enter In-kind Clearing.
3. Choose Bank in the Account type dropdown.
4. In the Detail type dropdown, select Checking.
5. In the Opening balance field, enter the opening balance amount. Then, select the starting date in the Date field.
6. Hit Save.

Now, set up a service item for each donation you receive. Ensure to select In-kind donations in the Income account dropdown. Once completed, create the sales receipt and bill, then mark it as cleared.

Here's how to do it:

1. Hover over to + Create, then Sales receipt.
2. From the Customer dropdown, select a customer.
3. If you don't have one, click + Add new.
4. In the Sales Receipt Date field, enter the date of the donation.
5. Select the In-kind Clearing bank account that you created from the Deposit To dropdown.
6. From the Product/Service dropdown, choose the service item.
7. Enter the fair market value of the donation in the Amount field, then click Save and close.

If you're unsure of the fair market value of the donation, I recommend consulting your accountant. They can also ensure that your financial records are accurate for completing your Form 990.

To proceed with the process, follow Steps 2 and 3 in this article: Set up and record in-kind donations in QuickBooks Online.

After completing these steps, the clearing account will show a zero balance. Then, the amount will reflect in your income account.

This thread will remain open for further queries. We're still here to help.

Hi Phyllis,

I just wanted to follow up to check if the resolution we provided helped resolve your issue.

Please let us know if everything is now working as expected or if you're still experiencing any problems.

We'll be glad to assist further if needed.

Have not had a chance to try this yet as we are in the middle of our busy season.

Thank you for answering so quickly.