Non-profit donations

Pleased to see you here, @RonS1.

I can provide you with some details on how you can record the donations you've received in QuickBooks Desktop.

Instead of creating a journal entry, let's create a bill for your rent and enter a sales receipts to record the payment your benefactor made as donation.

In recording the donation you've received, let's create an income account to track contributions.

Here's how:

1. Go to  the Lists menu.
2. Select Chart of Accounts.
3. Click Account drop-down,  select New.
4. Choose Income as the account type, then click Continue.
5. Enter the name (i.e. Cash Contributions).
6. Click Save & Close.

Once completed, let's create a clearing account. This is a bank account used in paying your nonprofit's rent (bill).

Here's how:

1. Click the Lists menu.
2. Choose Chart of Accounts.
3. Click Account then select New.
4. Select the Bank as the account type, then select Continue. 
5. Enter the name (for example, Cash Contributions) and account number (optional).
6. Click Save & Close.

Once the accounts are created, you can now create a sales receipt to record the donations. Make sure to create a service item for Monthly Rent and associate it with your Rent Expense.

Let's record the payment from Undeposited Funds to Cash Contributions clearing account.

Now, let's enter a bill for the rent it. Please make sure to select the donor's name in the Vendor field and the same item you selected on the sales receipt.

That should do it! Stay in touch with us here in the Community if you have other questions about recording your donations. I'm always here to help.

Thank you for the quick response.  Still a bit confused.

I have created the In-kind clearing account as a subaccount of Cash.

If I then click on donations and enter the $500 donation it then posts $500 to the Record Deposit icon.  Then it asks me to record the deposit and then shows $500 deposit which is really was not and inflates my bank account.  What am I doing wrong?

Can we discuss this by phone while I am in the program?

RonS

Still a bit confused.  Have created a Donations In-kind account listed as a sub-account of cash.  Is this correct? Then when I post the donation it wants me to go to Record Deposits and wants to put the donation in the bank account which it really didn't.  Don't see how to eliminate the deposit and have it debited to Rent.

Can we discuss by phone?

RonS1

Hi there, @RonS1.

As what my colleague mentioned above, you'll need to deposit the donations you've received into your clearing account.

Once done with depositing the amount, you can create an expense for the rent using the clearing account. You can create an expense by writing a check. Here's how:

1. Click on Write Checks from the Home Page.
2. On the Bank Account field, choose the clearing account you've made.
3. Enter the necessary information under the Expenses tab.
4. Click on Save & Close.

Also, if you want to speak with our QuickBooks Phone Support, you can schedule a callback with them. This way, you'll be given the steps while you access your account. Here's how:

1. Click on Help from the menu bar.
2. Choose QuickBooks Desktop Help.
3. Click on Contact Us.

Feel free to let me know if you have other questions regarding donations. I'll be around to provide assistance.