QuickBooks Team


Hello there, @Kirthana_RAD


It's an honor for me to answer your concern about how you record donations in QuickBooks. 


To give you insights, you can record donations as a bank deposit, sales receipt, or an invoice for a non-profit business. 


First off, you'll need to create a revenue account to track the funds you received from donors rather than depositing it into the Undeposited Funds account. Here's how: 


  1. Go to the Settings menu, then select Chart of Accounts.
  2. Click New to create a new account.
  3. In the Account Type dropdown, choose an account type.
  4. In the Detail Type dropdown, select Non-Profit Income
  5. Enter a name for your account such as "Fund donations". 
  6. Select Save and Close.


Once done, you'll need to create a fund donation item on your product and service items page. I'd suggest you select the non-inventory part since your only receive money. Check out this article for more detailed steps: Add product and service items to QuickBooks Online.


Then, you're ready to track the fund donation as a bank deposit, sales receipt, or an invoice. See Step 5: Track the fund donation outlined in this help article: Track funds you receive from donors in QuickBooks Online.


Just in case, you can also read through this article for future reference: Set up and record in-kind donations. It helps you learn about recording donations for your business in QuickBooks Online. 


Visit us here in the Community if you need additional guidance, @Kirthana_RAD. I'd be glad to give you more ideas and help you with your other QuickBooks concerns.