Question

In-kind donation

Forum|Forum|3 years ago
November 14, 2022
8 replies
41 views

I need your help! Our non-profit organization has received donations from individuals and organizations for specific purposes. The next step is we bought humanitarian aid items. These goods were given to those in need.
I put all the donations into QuickBooks Online. How do I correctly record the purchase of goods and the transfer of them to individuals?

QuickBooks Online

L

LeizylM

QuickBooks Team

Good day, peni2001.

I'll make sure you can record your donations seamlessly in QuickBooks Online (QBO).

To record an in-kind donation, you should set up an income and clearing account for charitable contributions. I'll show you how.

Go to Accounting.
Select Chart of Accounts.
Click New.
Under Account Type, select Income.
On the Detail Type menu, select Non-Profit Income.
Enter the name of your new account. Say In-Kind Donations.
Click Save and Close.

Once done, you can go ahead and create a product or service for your items for the donation. You can do so by following the steps below:

Go to Sales.
Select Products and Services.
Click New.
Under Product/Service information, select the appropriate type of your item.
Enter the name of your item.
On the Income account menu, select the recently created income account.
Click Save and close.

I’m adding these articles below for future reference. These resources will guide you on how to track different types of donations in QuickBooks Online:

Drop a comment below if you have additional questions about tracking donations. I'm always here to help. Take care and stay safe.

P

peni2001Author

Thanks for your response.

I recorded In-kind donation in QBO by your instructions. But I have some questions.

When I choose new item for in-kind donation, I can't uncheck box "I sell this products to my donors". So I have two boxes checked. Is it right?

When I create the bill, in Vendor field I can't choose the Donor name. Its only vendors. If I put it as a new one, I received message "Another donor, vendor or employee is already using this name". So I have different names in Sale receipt and In Bill. What to do?

I have Expenses for this In-kind donation as a downloaded from bank transaction. How I can record this expense?

Thanks.

C

Candice14

Level 8

Good morning, @peni2001.

I appreciate you coming back and asking some more question about your situation.

As for your first question, yes. You can't uncheck the box you mention.

However, the only other checkbox on the page, you don't need to leave this one checked off unless you're recording an item that you purchase from a vendor. Here's a picture so we're looking at the same checkbox:

You'll need to make the names a little different by adding or taking something away from the name in order to save that Vendor properly for the second question you asked.

As for the third and final question, reaching out to your accountant would be the best route to be sure about the details you gave and what to do next.

This should do the trick and answer all of your questions. I'm only a post away if you need me again. Best wishes!

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