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Buy nowHello,
Our non-profit incurred some legal fees and a donor wrote us a check to cover the fees. I am expensing the legal fees out of a Legal Fee expense account. How do I record the donation without it being counted as revenue or income? Of course, the donor wants tax credit for the donation. Thank you.
Lesa
Solved! Go to Solution.
Thanks for getting in touch with the Community, Lesa4Thunder. I appreciate your detailed information.
To track funds you've received through donations, you'll want to create a revenue account for them if you haven't yet.
Here's how:
 
Next, you'll need to create a fund donation item:
 
After creating the item, you can add your donor as a customer and track their donation.
If you have any further questions about recording donations, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.
I'll be here to help if there's any additional questions. Have an awesome Tuesday!
The donation is considered revenue. The legal fee expense will offset the revenue so there is no income.
Thanks for getting in touch with the Community, Lesa4Thunder. I appreciate your detailed information.
To track funds you've received through donations, you'll want to create a revenue account for them if you haven't yet.
Here's how:
 
Next, you'll need to create a fund donation item:
 
After creating the item, you can add your donor as a customer and track their donation.
If you have any further questions about recording donations, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.
I'll be here to help if there's any additional questions. Have an awesome Tuesday!
The donation is considered revenue. The legal fee expense will offset the revenue so there is no income.
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