How to Record a Donation in QuickBooks?

QuickBooks provides the ability to track donations in the form of cash, check and credit cards. These revenues should be entered as donations to ensure that the appropriate tax fields are used for year-end deductions. Instead of entering a donation as a deposit, it’s best to create a sales receipt form to create additional tracking options such as the type of donation, the program or the source of donation. This information can save a significant amount of time in case of an audit.

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1.
Click the “Nonprofit” menu and select “Enter Donations (Sales Receipts)” from the drop-down menu.

2.Select the “Customer:Job” drop-down arrow and select an existing donor or entity providing a grant. If you don’t have a donor or grant set up, click “Add New” to add a new donor or grant.

Enter donors as Customers and grants as Jobs.

3.Click the item from the Item column that matches the donation type. You can also create a new item by clicking the “Lists” menu and “Item List.” Click “Item” and click “New.”

4.Select the “Type” drop-down list and select “Service.”

5.Click the “Account” drop-down list and select an account to which the donation should be deposited.

6.Select the fund or project corresponding to the donation in the Class column. For instance, donations made to a specific charity.

7.Enter the total for the donation in the Amount field. Click the “Customize” button and select any fields you want to add or remove to help you track the donation, if necessary.

8.Click the “Print” button on the sales form to print the form.

9.Select the “Deposit To” drop-down list and select the account to receive the deposit, if applicable. This field may not exist for certain types of donations sent directly to a charity or organization.

10.Click “Save & Close.”

Above all, charitable donations help those in need — but for a business, making a donation also helps you out on your taxes. Intuit’s online-based QuickBooks software, which the company positions as accounting tools tailored for small businesses, offers billing, invoicing and bookkeeping features, including the ability to record item donations and charitable contributions.

Step 1
In QuickBooks Point of Sale, enter the QuickBooks Customer Center and select “Create Sales Receipt.” From the drop-down Customer menu, click “Add new” and type in the name of the organization to which you’ve made an item donation. Enter the date, and in the blank fields labeled “Item” and “Description,” enter the name of the item you’ve donated and a brief description of the item, including data such as the condition, features or year of manufacture. Select an item quantity from the drop-down menu. Under Amount, enter a dollar value equivalent to the value of the item. Click “I Want To,” then “Change Tax Location” and then “Exempt” before you click to “Save” button to record the donation.

Step 2
Create an expense account for your charitable contributions to help you keep track of money you’ve donated. Enter QuickBooks’ “List” menu and select “Chart of Accounts.” Click “Account,” then click “New” and “Continue.” When prompted to enter a name in the Account Name field, enter a name that will help you identify this account, such as “Charitable Contributions.” Click “Save and Close” to save the account.

Step 3
Click the “Banking” tab to record a check you made as a charitable contribution. Select “Write Check.” From the drop-down menu, choose the bank account from which the check expense will be paid. Click “Add New” in the “Pay to the order of” field, and type in the name of the charity or organization to whom you wrote the check. Enter the check number, date, amount of the check and — if you wish — an additional memo, in the associated blank fields. From the drop-down menu under “Itemize by Account,” select the name of the account you created for charitable contributions. Click “Save” to record this expense.

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Tip

To record a contribution made with cash or a credit card, click “Cash Expense” or “Credit Card Expense” under the “Banking” tab. Enter the applicable information in the blank fields, just as you would when entering a check expense, and click “Save” to record the expense.