How to Record Donations Received in QuickBooks Desktop
Recording donations received in QuickBooks Desktop is an essential task for any non-profit organization or charity. Properly documenting these contributions ensures accurate financial reporting and helps maintain transparency. In this article, we will guide you through the process of recording donations in QuickBooks Desktop, making it easier for you to manage your organization’s finances effectively.
Step 1: Set Up a Donor
Before recording a donation, you need to set up a donor profile in QuickBooks Desktop. This will help you track the contributions made by each donor. To create a donor profile, follow these steps:
1. Click on the “Lists” menu and select “Customer & Vendor Lists.”
2. Choose “New” and select “Donor” from the list of options.
3. Enter the donor’s information, such as name, address, and contact details.
4. Save the donor profile.
Step 2: Create a Donation Receipt
To record a donation, you need to create a donation receipt. This receipt will serve as a record of the donation and can be provided to the donor for their records. Here’s how to create a donation receipt in QuickBooks Desktop:
1. Click on the “Receive Payments” button on the home page.
2. Select the donor from the “Customer: Job” field.
3. Enter the donation amount in the “Amount” field.
4. Choose the appropriate account, such as “Cash” or “Checking,” in the “Account” field.
5. Select the “Income” account, such as “Donations Received,” in the “Class” field.
6. Enter the donation date in the “Date” field.
7. Click “Save and Close” to record the donation.
Step 3: Record Recurring Donations
If you receive recurring donations from a donor, you can set up an automatic recurring donation in QuickBooks Desktop. This will save you time and ensure that donations are recorded accurately over time. Here’s how to set up a recurring donation:
1. Go to the “Lists” menu and select “Customer & Vendor Lists.”
2. Choose “Recurring Transactions” and then “New.”
3. Select “Receive Payment” as the transaction type.
4. Choose the donor from the “Customer: Job” field.
5. Enter the donation amount and select the appropriate accounts.
6. Set the frequency and start date for the recurring donation.
7. Save the recurring donation.
Step 4: Generate Reports
To monitor your organization’s donation activities, you can generate various reports in QuickBooks Desktop. These reports will provide insights into your donation income, donor demographics, and other relevant information. Here’s how to generate donation reports:
1. Go to the “Reports” menu and select “Accounting & Finances.”
2. Choose the desired report, such as “Sales by Customer,” “Sales by Class,” or “Donations by Customer.”
3. Run the report and review the information.
By following these steps, you can efficiently record donations received in QuickBooks Desktop, ensuring accurate financial management for your non-profit organization or charity.
