Income versus Expenses Statement of Activitiy

In QB a donor is a customer, they give you money

You pay vendors, they do not give you money, so if you credited the vendor with his donation, all you have is a vendor credit waiting to be applied to a new bill

Thank you. So how do I get the credit out of the vendor? When I go into the vendor, I don't see any transactions with credits. Also, would this amount have been deducted from our expenses? Because I don't see it anywhere in there either. Not sure how to see credits applied to an individual vendor. We do not create bills. The vendor I am using as a test shows no open transactions. 

Hello again, HITWtreasurer. I'm here to lend a hand.

You'll need to create a vendor credit transaction, so you can apply the vendor credit to the bill you wish to pay. 

To create a vendor credit:

1. In the left menu, click the + New button.
2. Choose Vendor credit.
3. Select your vendor in the Vendor dropdown.
4. Enter the Category details or Item details depending on how you record purchases with this vendor.
5. Click Save and close.

After that, to apply vendor credits to a bill:

1. In the left menu, click the + New button.
2. Choose Pay bills.
3. Select a bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field.
4. Complete the rest of the fields like you normally do.
5. Click Save and close.

For more information about vendor credits, see this article: Handle vendor credits and refunds in QuickBooks Online. It includes instructions on how to apply it to the bill, expense, or checks.

You might also want to check out this article to learn how to view your transactions with your vendors in QuickBooks Online: View vendor transactions.

Let me know if you have any Questions after following those steps. I’m always here to help. Have a good one!