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:
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.