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chris200
Level 1

We are a non profit and we received a donation of non-cash items. How do I issue a receipt to the donor for those items?

 
1 Comment 1
katherinejoyceO
QuickBooks Team

We are a non profit and we received a donation of non-cash items. How do I issue a receipt to the donor for those items?

Welcome to the Community, @chris200. Donations other than cash is called an in-kind contribution.

 

Before we can issue a receipt to the donor for those items, we'll need to create an income and clearing account for charitable contributions first. Here's how:

 

  1.  Select Chart of Accounts from the Accounting menu, then click the New button. 
  2. In the Account Type drop-down list, select Income, then select Non-Profit Income from the Detail Type drop-down menu.
  3. Enter a name for the account such as In-Kind Contributions, then select Save and New to create another (clearing) account. 
  4. From the Account Type drop-down menu, select Bank
  5.  Then, select Checking from the Detail Type drop-down list.
  6. Enter a name for the account such as In-Kind Clearing
  7. Click Save and Close

 

Then, proceed to create a product or service item for the donations. Here's how: 

 

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

 

You can now enter a sales receipt and create a bill for the donation. Then, mark the bill as cleared. Check out this help article for more detailed steps: Set up and record in-kind donations.

 

I'd also recommend consulting your accountant for proper guidance to make sure your books are accurate. 

 

Just in case, read through this article to help you learn about tracking inventory for the items you'll need to donate in the future: Track donated inventory.

 

Let me know if you have additional questions. We're always here to be your guide. 

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