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sharon81
Level 1

If a donor gives a donation through a merchant service (ie tithe.ly or paypal) how do I enter service charge/don so that the donor gets full credit for their donation?

We do not work with invoices. We are a nonprofit and have donors. I need to enter the full amount and the service charge
4 Comments
Rustler
Level 15

If a donor gives a donation through a merchant service (ie tithe.ly or paypal) how do I enter service charge/don so that the donor gets full credit for their donation?

Create a service item called merchant fee and link it to the merchant fee expense account, and set 

 

use your donation item for the full amount

on the next line use the fee expense item, set the qty to -1 and enter the amount of the fee

save

sberti
Moderator

If a donor gives a donation through a merchant service (ie tithe.ly or paypal) how do I enter service charge/don so that the donor gets full credit for their donation?

Welcome to the Community @sharon81. I'd be more than happy to assist you today.

 

When it comes to Donor Payments, there are a few different ways you could record them:

 

As a pledge:

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

 

First, record the donation.

  • Select +New. Then select Pledge.
  • Select Customize, then choose your donation template.
  • Make sure to select the donor and the donation item you set up.
  • 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.

  • Select +New. Then, select Receive Payment.
  • Select the donor and update the payment date.
  • Select the Payment method dropdown, then choose how you receive the donation.
  • Select the Deposit to dropdown, then choose where the donation is going.
  • Select the check box 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.

  • Create a sales receipt for the donation.
  • Select Customize, then choose your donation template.
  • Make sure to select the donor and donation item you set up.
  • Select the Payment method dropdown, then choose how you receive the donation.
  • 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.

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

If you're trying to decide which method to use, I'd recommend running each one by an accounting professional.

 

If you need anything else, feel free to reach back out to me here in the Community any time!

Cliff 9
Level 1

If a donor gives a donation through a merchant service (ie tithe.ly or paypal) how do I enter service charge/don so that the donor gets full credit for their donation?

We down load our paypal activity directly into the pay bank bank GL account.   If I am going to track history through customers, it seems I need to create a sales receipt for each donation, with a donation line item and a fee line item, and then use the downloaded amount to pay the sales receipt?   A lot like creating an invoice first?

 

Jen_D
Moderator

If a donor gives a donation through a merchant service (ie tithe.ly or paypal) how do I enter service charge/don so that the donor gets full credit for their donation?

Glad to see you here, @Cliff 9,

 

A sales receipt is considered as a cash basis transaction, so we cannot apply a payment to it. The entry itself is considered an income in your books.

 

If you want to link the Paypal entry in the bank feeds to the sales receipt, simply match the two transactions. Here's how:

 

  1. Find a downloaded transaction with the Match option in the Action column.
  2. Note the DateDescriptionPayee, and amount spent or received.
  3. Select the downloaded transaction to expand the view.
  4. Review the Matching records found in QuickBooks. This is the possible matching transaction you already entered in QuickBooks.
  5. Select the link next to each match to get more details.
  6. Make sure this is the correct match. In particular, review the Deposit toPayment method, and Bank account fields on forms for the existing transaction in QuickBooks.
  7. If this is the correct match, close the open transaction.
  8. Select Match.

 

 

Otherwise, use the invoice if you want to receive the Paypal entry as a payment. The steps to receive an invoice payment is shared by sberti in her answer.

 

Let me know if you have further questions about this. I'll be right here if you need help with recording a donation. Have a good one!

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