Learn how to track fund donations you receive via credit card, bank transfer, or as cash in QuickBooks Online.
If you run a nonprofit organisation, it’s easy to keep tabs on the money you receive from your donors. Depending on how you receive the donation, you can record and track it as a sales receipt or deposit. We’ll show you how.
Step 1: Create an account for fund donations
Create an income account in your chart of accounts for tracking the money you receive from donors. If you already have one, you can skip this step.
- Follow these steps to create an income account.
- Make sure to select Income for the account type and Non-Profit Income as the detail type.
- You can call this account “Non-Profit Income.”
Step 2: Create a fund donation item
When you create a sales receipt, you need to select a product or service item. Since you only receive money, you can set up a non-stock part instead.
Note: You don't have to create a new item every time you receive a fund donation. In most cases, you only need one item to track fund donations from different donors.
- Follow these steps to create a non-stock item.
- You can call this item “Non-Profit Income.”
- Don’t forget to use the income account you set up in "Step 1."
Step 3: Add your donor as a customer
If you haven’t already, add the donor as a customer in QuickBooks.
Step 4: Track the fund donation
Tip: Show your appreciation to your donors when you send a receipt of their donation. You can customise the thank you letters you email.
As a sales receipt
You can create a sales receipt if you receive the donation right away. Then, if you need to, you can also send the sales receipt to the donor as a statement of their donation.
- Create a sales receipt for the donation.
- Select Customise, then choose your donation template.
- Complete receipt details. Make sure to select the donor and donation item you set up.
- Select the Payment method ▼ dropdown, then choose how you receive the donation.
- Select Save and close or Save and send if you want to email your donor a receipt of their donation.
As a bank deposit
If you simply need to record the money donated to your organisation, you can create a bank deposit instead.
- Create a bank deposit for the donation.
- Make sure to select the donor and the revenue account you set up for donations.