Question

I need help with this QuickBooks information:

I don’t have customers, but I do have donors and grants, how do I set them up if QuickBooks just has customers?

We also now receive donations from Hanson Family trust. do we set them up as a customer? the info for the trust is...

Answer 1

If you change your account type to nonprofit organization, it’s easy to keep tabs on the money you receive from your donors.

The steps to do the same are as follows:-

1) Change your account type to nonprofit and Change customer as doner

> First Change your account type to nonprofit

• Select Settings then Account and Settings
• Select Advanced
• In Company Type, select Edit
• Select Tax Form dropdown, then choose Noneprofit organisation (Form 990)
• Select Save then Done
• Sign out and sign back in to see the changes reflected throughout QuickBooks.

> Secondly Change customer as doner

• Select Settings then Account and Settings
• Select Advanced
• Select Edit in Other preferences
• Select the Customer lable dropdown, then choose Doner
• Select Save and Done.

2) Create a revenue account for fund donations (for tracking the money you receive from donors)

• Create a revenue account
• Make sure to select Non-Income Profit as detail type
• You can call this account "Fund Donation"

3) Create a fund donation item (When you create a sales receipt, you need to select a product or service item. Since you only receive money, you can set up a non-inventory part instead.)

• Go to the Sales menu and select the Products and services tab.
• Select New.
• Select Non-inventory or Service.
• Add a name. If you track SKUs, enter a SKU for the product.( You can call this "Fund Donations")
• From the Category dropdown, select the category that best describes your product or service.
• Select the I sell this product/service to my customers checkbox. If you don't sell the item, you can leave it unchecked.
• In the Sales information section, enter a description. This is what your customers will see on their sales form.
• Enter an amount in the Sales price/rate field. Note: If you charge a variable rate for services, you can leave the Sales price/rate data field blank. Add the price when you fill out the invoice or sales receipt.
• Select the Income account dropdown and the account you want to use to track the sale.
• If you need to track sales tax, select Taxable - standard rate from the Sales tax category dropdown. If the item has a special tax rate, select Choose a special category and find the best option
• When you're done, select Save and Close.
• Use the revenue account you set up in “Step 2.”

4) Add your doner as Customer ( For e.g. Hanson Family Trust)  

5)Track the fund donation

> Track your fund donation as a pledge ( If your doner promises to donate later)

• Select New. Then, select Pledge.
• Select Customize, then choose your donation template.
• Make sure to select the donor and the donation item you set up.
• Select Save and close or Save and send if you want to email your donor a receipt of their pledge.

Once you receive the donation, record the receipt.

• Select + New. Then, select Receive payment.
• Select the donor and update the payment date.
• Select the Payment method dropdown, then choose how you receive the donation.
• Select the Deposit to dropdown, then choose where the donation is going.
• Select the checkbox for the pledge, then Save and send if you want to email your donor a receipt of the donation.

> Track your fund donation as a sales receipt

(You can create a sales receipt if you receive the donation right away. Then, if you need to, you can also send the sales receipt to the donor as a statement of their donation.)

• Create a sales receipt for the donation.
• Select Customize, then choose your donation template.
• Make sure to select the donor and donation item you set up.
• Select the Payment method  dropdown, then choose how you receive the donation.
• Select Save and close or Save and send if you want to email your donor a receipt of their donation.

> Track your fund donation as a bank deposit

(If you simply need to record the money donated to your organization, you can create a bank deposit instead.)

• Create a bank deposit for the donation.
• Make sure to select the donor and the revenue account you set up for donations.