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.
- Go to the Accounting menu.
- Choose the Chart of Accounts tab.
- Select New.
- Pick Expense from the Account Type ▼ drop-down menu.
- From the Detail Type ▼ drop-down menu, select Non-Profit Income.
- Enter a name (for example, Charitable Contributions) for the account.
- 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.
- Go to Settings ⚙ and select Products and Services.
- Select New and then Service.
- In the Product/Service information panel, select the type of product or service.
- Add a Name and Description suitable for sales, pledge, or donation receipts.
- From the Income account ▼ drop-down menu, select the In-Kind Contributions income account you created.
- Under Purchasing information, select the I purchase this product/service from vendor checkbox.
- 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.
