Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Our nonprofit receives in-kind donations of things like clothing, furniture, school supplies, etc. that we then turn around and give away directly to an individual or family in need.
1.) I 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 the act of giving the donated item away?
2.) Same question, but what if we're turning around and giving away the donated item to another charity?
Thanks,
Solved! Go to Solution.
It's nice to see you here, @josiah1,
If you track the quantity on hand of the items you receive that you are donating or giving away, there are several steps you can follow to record it.
Here’s what you need to do:
Next, to account for the original cost of the product/service, create a journal entry to move the cost out of the Cost of Goods Sold account and into the appropriate expense account (for example, Charitable Donations Expense).
To do this:
However, if these donations are recorded as fixed assets, you can follow the steps in this article to record them: Set up and record in-kind donations
We always recommend seeking an accountant first to make sure you get the right advice on how to record certain donations. They are the best person to consult when you're unsure of any accounting process and accounts to use for it.
I'm also adding this related article about donations in QBO: How to record donations or charitable contributions
Let me know if you have any questions about this or need further help with the steps. I'll be right here to help you.
It's nice to see you here, @josiah1,
If you track the quantity on hand of the items you receive that you are donating or giving away, there are several steps you can follow to record it.
Here’s what you need to do:
Next, to account for the original cost of the product/service, create a journal entry to move the cost out of the Cost of Goods Sold account and into the appropriate expense account (for example, Charitable Donations Expense).
To do this:
However, if these donations are recorded as fixed assets, you can follow the steps in this article to record them: Set up and record in-kind donations
We always recommend seeking an accountant first to make sure you get the right advice on how to record certain donations. They are the best person to consult when you're unsure of any accounting process and accounts to use for it.
I'm also adding this related article about donations in QBO: How to record donations or charitable contributions
Let me know if you have any questions about this or need further help with the steps. I'll be right here to help you.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
For more information visit our Security Center or to report suspicious websites you can contact us here