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LRBookkeeping
Level 1

Tracking expenses for non profit donations

One of my clients also has a non profit ministry also.   They make a donation to a school in south america.   The school sends them an "expense report" each month.    Is there a way to track their charitable contributions and also the expenses in QBO?   We list the donation as a chartiable contribution, but would also like to compare what we are sending them to what they are spending to what we are donating.  That we would be able to see any unusual expenses.  

 

3 Comments 3
IamjuViel
QuickBooks Team

Tracking expenses for non profit donations

Greetings, @LRBookkeeping.

 

I can guide you in tracking your client's charitable contributions in QuickBooks.

 

You can set up the charitable organization you're donating to as a vendor. Then, you can create a Charitable Donation item and use it in creating a check or a bill and payment, just as you would for any other payment to a vendor. Let's first create a Charitable Donations expense account. 

  1. Go to the Accounting menu.
  2. Choose the Chart of Accounts tab.
  3. Select New.
  4. Pick Expense from the Account Type drop-down menu.
  5. From the Detail Type ▼ drop-down menu, select Non-Profit Income.
  6. Enter a name (for example, Charitable Contributions) for the account.
  7. Click Save and Close.

This specific account is used to track expense transactions for tax-deductible contributions, as this will make things easier for your accountant or tax preparer. Now, let's create the Charitable Donations service item. 

  1. Go to Settings ⚙ and select Products and Services.
  2. Select New and then Service.
  3. In the Product/Service information panel, select the type of product or service.
  4. Add a Name and Description suitable for sales, pledge, or donation receipts.
  5. From the Income account drop-down menu, select the In-Kind Contributions income account you created.
  6. Under Purchasing information, select the I purchase this product/service from vendor checkbox.
  7. Select Save and Close.

One everything is set up, you can now create a check, an expense transaction, or a bill every time they make a donation. You can check this article for more detailed information: How to record donations or charitable contributions.

 

Lastly, you can customize and generate the Transaction Detail by Account report. This will display your charitable donations-related transactions.

 

Always feel free to leave your comments below if you have other questions about tracking your non-profit related transactions. I'm always here to help.

LRBookkeeping
Level 1

Tracking expenses for non profit donations

So my client is the non profit.   We track contributions to us.   And we track donations made.

 

We receive donations slotted for a school in another country.  (Contribution in as Non profit income)  We fund the school  monthly.  ( Expensed out as Charitable Contributions).    The school sends us a spread sheet each month with what they spent the money on.    Is there a way to track that spreadsheet in quickbooks?  So we can see what areas the money is being spent on?

DivinaMercy_N
Moderator

Tracking expenses for non profit donations

I'm here to help you track the spreadsheet sent to you in QuickBooks, @LRBookkeeping.

 

If those are bank transactions, you can import them through a WebConnect or CSV file into QuickBooks Online (QBO). You may use either a 3-column or 4-column format. Then, categorize the transactions as donations and expenses.

 

Once your CSV file is ready, refer to the steps below to begin the import:

 

  1. Go to the settings icon and select Import data
  2. Choose Bank Data.
  3. Click the Browse button in the Get your info from your bank field. 
  4. Look for your CSV file and then click Next.
  5. Follow the on-screen process to upload the data.

 

Here's the article that will provide more info about the process: Import bank transactions using Excel CSV files.

 

Also, you may check out this wonderful article to help you review your accounts to ensure they match your real-life bank statements: Learn the reconcile workflow in QuickBooks


Please know that you're always welcome to post again if you have any other concerns about tracking your data. I'm always here to help. Wishing you and your business continued success. 

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