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mbgiffin
Level 1

Sold in kind donation (non-profit)

We use the Sales Receipt/Product called "Donations-in-Kind"/Clearing Bank Account approach to record the incoming donation...but then what is the best way to record in-kind gift certificates sold?

2 Comments 2
Rubielyn_J
QuickBooks Team

Sold in kind donation (non-profit)

I know the best way to record sold in-kind gift certificates sold in QuickBooks Online, @mbgiffin.

 

To record an in-kind donation, you should set up an income and clearing account for charitable contributions, and create a product or service item for the donations.

 

Once done, to record an in-kind donation, enter a sales receipt and create a bill for the donation, then mark the bill as cleared. Let me show you how: 

 

Enter a sales receipt:

  1. Go to the + New button.
  2. Choose Sales Receipt.
  3. In the Customer field, enter the donor's name. 
  4. Enter the Date of the donation.
  5. From the Deposit to ▼ drop-down menu, click the In-Kind Clearing bank account you created.
  6. Select the appropriate item from the  drop-down menu of the Product/Service column and add any additional Description.
  7. Assign the Class associated with the donation. (Optional) 
  8. Enter the fair market value (FMV) of the donation in the Amount field. (Consult your accountant if you are unsure of the Fair Market Value of a donation.)
  9. Once done, click Save and Close.

 

The next step is to enter a bill:

  1. Click the + New button and then choose Bill.
  2. In the Vendor field, enter the donor’s name and add a period (.) or 1 after the name so the system will accept it. Click Add and Save.
  3. Under Item details, select the product or service you created from the  drop-down menu.
  4. Assign the same Class you assigned on the sales receipt. (Optional) 
  5. Select Save and Close.

 

Lastly, mark the bill cleared:

  1. Choose + New and select Pay Bills.
  2. From the Payment account ▼ drop-down menu, select the clearing account.
  3. Click the checkbox of the bill you entered.
  4. Choose Save and send.

 

When it comes to selling in-kind gift certificates received, I highly suggest reaching an accountant. This is to make sure everything is recorded accurately in your book. 

 

For more details, you may also check this article to serve as your guide: Sell and redeem gift cards or certificates in QuickBooks Online.

 

Feel at ease to let me know if you have other QuickBooks concerns. I'll get back to you as soon as I can. Keep safe and have a blissful day.

Rubielyn_J
QuickBooks Team

Sold in kind donation (non-profit)

Hi, @mbgiffin.

 

Hope you’re doing great. I wanted to see how everything is going about your concern in recording sold in-kind gift certificates sold you had the other day. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.

 

Looking forward to your reply. Have a pleasant day ahead!

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