Track funds you receive from donors in QuickBooks Online

Learn how to track fund donations you receive via credit card, bank transfer, or as cash in QuickBooks Online.

If you run a nonprofit organization, it’s easy to keep tabs on the money you receive from your donors. Depending on how you receive the donation, you can record and track it as a sales receipt, bank deposit, or pledge. We’ll show you how.

Note: Received in-kind donations instead? Here’s how to track in-kind donations, like office supplies or furniture.

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Step 1: Change your account type to nonprofit

You can change your QuickBooks Online account type to better fit your tracking needs. If you haven’t already, update your account for a nonprofit organization.

Tip: Show your appreciation to your donors when you send a receipt of their donation or pledge. You can customize the thank you letters you email.

Step 2: Create a revenue account for fund donations

Create a revenue account in your chart of accounts for tracking the money you receive from donors. If you already have one, you can skip this step.

1. Follow these steps to create a revenue account.
2. Make sure to select Non-Profit Income as the detail type.
3. You can call this account “Fund donations.”

Step 3: Create a fund donation item

When you create a sales receipt, you need to select a product or service item. Since you only receive money, you can set up a non-inventory part instead.

Note: You don't have to create a new item every time you receive a fund donation. In most cases, you only need one item to track fund donations from different donors.

1. Follow these steps to create a non-inventory item.
2. You can call this item “Fund donations.”
3. Don’t forget to use the revenue account you set up in “Step 2.”

Step 4: Add your donor as a customer

If you haven’t already, add the donor as a customer in QuickBooks.

Step 5: Track the fund donation

As a pledge

If your donor promises to donate at a later date, you can record a pledge.

First, record the donation.

1. Select + New. Then, select Pledge.
2. Select Customize, then choose your donation template.
3. Make sure to select the donor and the donation item you set up.
4. Select Save and close or Save and send if you want to email your donor a receipt of their pledge.

Once you receive the donation, record the receipt.

1. Select + New. Then, select Receive payment.
2. Select the donor and update the payment date.
3. Select the Payment method ▼ dropdown, then choose how you receive the donation.
4. Select the Deposit to ▼ dropdown, then choose where the donation is going.
5. Select the checkbox for the pledge, then Save and send if you want to email your donor a receipt of the donation.

As a sales receipt

You can create a sales receipt if you receive the donation right away. Then, if you need to, you can also send the sales receipt to the donor as a statement of their donation.

1. Create a sales receipt for the donation.
2. Select Customize, then choose your donation template.
3. Make sure to select the donor and donation item you set up.
4. Select the Payment method ▼ dropdown, then choose how you receive the donation.
5. Select Save and close or Save and send if you want to email your donor a receipt of their donation.

As a bank deposit

If you simply need to record the money donated to your organization, you can create a bank deposit instead.

1. Create a bank deposit for the donation.
2. Make sure to select the donor and the revenue account you set up for donations.