How do you record cash donations received for a non-profit to the restricted equity account in quickbooks online?

We can record and track the funds as a sales receipt, bank deposit, or pledge, bhccc.

To start, you can change your QuickBooks Online account type to better fit your tracking needs. If you haven’t already, update your account for a nonprofit organization.

Since you already have an account, let's proceed in creating a fund donation item. We can set this up as a non-inventory part.

1. Follow these steps to create a non-inventory item.
2. You can call this item “Fund donations.”
3. Add the correct account.

After that,  add your donor as a customer in QuickBooks. 

1. Go to the Sales menu.
2. Select the Customers tab.
3. Select New Customer.
4. Enter your customer’s info.
5. Select Save.

Once done, we can now record the donation. If your donor promises to donate at a later date, you can record a pledge.

1. Go to + New, then, select Pledge.
2. Select Customize, then choose your donation template.
3. Make sure to select the donor and the donation item you set up.
4. Select Save and close.

Then, let's receive the donation. After that, record the sales receipt. Make sure to select the donor and donation item you set up.

If you simply need to record the money donated to your organization, you can create a bank deposit instead for the donation. Please ensure to add the correct details stated above.

Additionally, I've added some articles that will guide you on how to manage an account for a nonprofit organization. Feel free to read the topics from here:

• How Nonprofit Organizations Use QuickBooks Online
• Track Funds you Receive from Donors
• Set up and Record In-kind Donations

You can always get back on this thread if you have other questions or concerns about recording donations. I'm always here to assist you in any way I can. Have a good one.​​​​​​​

Hi bhccc,

Hope you’re doing great. I wanted to see how everything about recording your cash donations in QuickBooks Online. Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

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

CharleneMae,

Thank you so much for your reply it was helpful.  I do have an additional question.  I took the funds in as a wire transfer so it debited the bank account and credited the revenue account donations(which I set top with your instruction, thanks). How do I get the donation to show top on the balance sheet in the equity section under  unrestricted or restricted funds? 

Thanks for getting back to this thread, bhccc.

Let me help with your question about moving amounts in your report.

Changing the arrangement or moving accounts in your Balance Sheet is currently unavailable in QBO. If you're referring to moving a transaction to a different account, you'll want to change the account in the Income account of the item used for donations. Here's how: 

1. Go to the Gear icon and select Products and services.
2. Look for the Fund donations item and click Edit.
3. Go to the Income account section and make sure to use the restricted equity account.
4. Click Save and close. 

Once done, go back to the Balance Sheet and check if the donation is already part of the restricted funds section. 

Feel free to take a look at this article for additional guidance and reference: 

• Customize Reports in QuickBooks Online
• Common Custom Reports in QuickBooks Online

The Community is always here to help if you need anything else. Just reply below or post new questions and we'll be glad to answer them for you.