I just started using QuickBooks for a nonprofit and am trying to figure out how to enter simple donations and grants received. Could you please take me step-by-step through how to do both of these functions? Thank you!
Here are the step-by-step instructions for how to enter donations and grants in QuickBooks:
- Go to Lists > Chart of Accounts and create two revenue accounts – one for donations and one for grants.
- Go to Lists > Item List and create two service items – one for donations and one for grants using the appropriate revenue account.
- When you receive a donation or grant, go to Customers > Enter Sales Receipts using the items you created above.
- When you make the bank deposit, go to Banking > Make Deposits and select the payments you’re depositing.
You could have more accounts if you want more detail, such as Board Donations to differentiate what funds come from the Board Members vs. general donors. Keep in mind that the more accounts there are, the more errors are likely to follow.
If you also get restricted donations, you need to use classes so you can track them properly. Many nonprofits have a class list that looks something like this: