How to Record Donations or Charitable Contributions in QuickBooks?

Although QuickBooks is the best accounting software solution for profit-centered businesses across the globe, for non-profit organizations to conduct a […]

Voiced by Amazon Polly

Although QuickBooks is the best accounting software solution for profit-centered businesses across the globe, for non-profit organizations to conduct a basic accounting function like registering and reporting charitable contributions can be quite difficult.

The content below will highlight the real meaning of charitable contributions and how you should account for them in QuickBooks minus any errors. Learn How to Record Donations or Charitable Contributions in QuickBooks?

Save Time, Reduce Errors, and Improve Accuracy

Dancing Numbers helps small businesses, entrepreneurs, and CPAs to do smart transferring of data to and from QuickBooks Desktop. Utilize import, export, and delete services of Dancing Numbers software.

What is a Charitable Contribution?

A charitable contribution is also called a charitable donation. It is a gift from any particular donor which is in the form of property or cash contribution. The main idea behind the contribution is to help non-profit institutions with a particular target or goal.

How to Record Charitable Contributions in QuickBooks?

Here are the steps to record charitable contributions in QuickBooks:

Step 1: Make an Invoice

To start recording a donation, you must prepare an invoice for the service or the product in order to record the income.

Make sure you do not miss out on this step. If you do so, the balances will not be in sync when you do the other important steps in the process.

Step 2: Make an Account for all kinds of Charitable Contributions

Step 1: Navigate to Settings.

Step 2: Choose Chart of Accounts.

Step 3: Choose New.

Step 4: In the particular Account dialog, choose Expenses from the particular drop-down list named Account Type.

Step 5: Choose Charitable Contributions from the particular drop-down⬇️ list named Detail Type.

Step 6: Add a Name for the particular account.

Step 7: Press Save and Close.

Now, when the account is already created, the next move is to make a product/service item for contribution.

Step 3: Make a Charitable Contribution Service or Product Item

In order to make a service or product item for charitable contributions, you need to perform the steps given below:

Step 1: Navigate to Settings.

Step 2: In the Lists section, choose Products and Services.

Step 3: Choose New.

Step 4: In the given Service/Product information panel, choose the type of service or product.

Step 5: Add a name for the item.

Step 6: Choose the option that says I sell this product/service to my customers.

Step 7: Choose the Charitable Contributions Account you built from the given drop-down⬇️ list in the particular Income Account field.

Step 8: Choose Save and Close.

Note: When an account has been created along with a service/product item, the next move is to generate a credit memo for the exact value of the donation.

Step 4: Generate a Credit Memo

In order to generate a credit memo for the right value of the services or products you are donating, please follow the steps given below:

Step 1: Choose +New.

Step 2: In the Customers section, choose Credit Memo.

Step 3: Add to choose the Customer that you have donated the Service or Product to.

Step 4: In the particular Product/Service column, choose the Charitable Contributions item and add the Amount of your particular donation. Make sure the donation is entered as a positive number.

Step 5: In the given Memo field, add Charitable Contribution or Donation.

Step 6: Choose Save and Close.

Note: The credit memo shows the donation amount. The next move is to authenticate that it has been incorporated into the invoice you issued.

Step 5: Authenticate the Credit Memo was Incorporated to the Invoice

The last step in the method is to authenticate the credit memo that has been incorporated into the invoice you have built for the contributed items.

In order to authenticate that the credit memo has been rightfully integrated, please follow the steps below:

Step 1: Navigate to Get Paid & Pay and choose Customers.

Step 2: Choose the customers to whom you have donated the Service or Product from the given list.

Step 3: On the particular Transaction List tab, please authenticate the Invoice Transaction you have built when the process commenced. Click the Status as Paid.

Step 4: Authenticate the Credit Memo transaction that you have built is registered as Closed in the given Status column.

Step 5: Authorize that a New Payment transaction is noted and is listed in the particular Total column. And in the Status column, Closed is noted.

Now, recording the charitable contributions is completed successfully.

Note: QuickBooks has the ability to monitor donations like a check, cash, credit cards, etc. Such revenues must be added as donations to make sure the right tax fields are utilized for the particular year-end deductions. Rather than adding a donation as a deposit, it is highly recommended to build a sales receipt form to build more tracking options like the charitable contribution, donation source, or the program.

Furthermore, during an audit, this piece of information can save a lot of time too.

Did you understand all about recording in-kind donations in QuickBooks? Make sure you make this change to your business on an early basis.

We have highlighted all the information related to recording charitable contributions in QuickBooks. If you still want professional guidance and help and want to know how the experts in the fields can do it, let us help you.

Accounting Professionals, CPA, Enterprises, Owners
Accounting Professionals

Looking for a professional expert to get the right assistance for your problems? Here, we have a team of professional and experienced team members to fix your technical, functional, data transfer, installation, update, upgrade, or data migrations errors. We are here at Dancing Numbers available to assist you with all your queries. To fix these queries you can get in touch with us via a toll-free number
+1-800-596-0806 or chat with experts.


Frequently Asked Questions (Faqs)

How a Charitable Contribution is different from a Charitable Donation?

In simple terms, charitable donation and charitable contribution are not the same. A charitable contribution is related to a gift to a collection or a common fund while a donation is usually related to a gift to a particular non-profit organization. In the real world, these two phrases are often understood as the same phrase.

How to Record a Donation Refund in QuickBooks?

Here are the steps to record a donation refund in QuickBooks:

Step 1: Press on Customers.

Step 2: Press on Create Credit Memo or Credit Refund.

Step 3: Now, the particular Refund icon will be displayed.

Step 4: Choose the bank account.

Step 5: In the particular Pay to order section, press the customer.

Step 6: Enter the amount that is required to be donated.

Step 7: Now, press Save.

How is it Possible to know the Amount of Donation in QuickBooks?

It is possible to know the amount of donation in QuickBooks with the help of a credit memo. The credit memo displays the donation amount clearly.

Features of Dancing Numbers for QuickBooks Desktop

Imports

Imports

Exports

Exports

Deletes

Deletes

Customization

Customization

Supported Entities/Lists

Dancing Numbers supports all QuickBooks entities that are mentioned below:-

Customer Transactions

Invoice
Receive Payment
Estimate
Credit Memo/Return Receipt
Sales Receipt
Sales Order
Statement Charge

Vendor Transactions

Bill
Bill Payment
Purchase Order
Item Receipt
Vendor Credit

Banking Transactions

Check
Journal Entry
Deposit
Transfer Funds
Bank Statement
Credit Card Statement
Credit Card Charge
Credit Card Credit

Employee Transaction / List

Time Tracking
Employee Payroll
Wage Items

Others

Inventory Adjustment
Inventory Transfer
Vehicle Mileage

Technical Details

Easy Process

Bulk import, export, and deletion can be performed with simply one-click. A simplified process ensures that you will be able to focus on the core work.

Error Free

Worried about losing time with an error prone software? Our error free add-on enables you to focus on your work and boost productivity.

On-time Support

We provide round the clock technical assistance with an assurance of resolving any issues within minimum turnaround time.

Pricing

img

Importer, Exporter & Deleter

*See our Pricing for up to 3 Company Files

$199/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Unlimited Export
  • Unlimited Import
  • Unlimited Delete

img

Accountant Basic

*See our Pricing for up to 10 Company Files.

$499/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer,Exporter,Deleter
  • Unlimited Users
  • Unlimited Records
  • Upto 10 companies

img

Accountant Pro

*See our Pricing for up to 20 Company Files.

$899/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer, Exporter, Deleter
  • Unlimited Users
  • Unlimited Records
  • Up to 20 companies

img

Accountant Premium

*See our Pricing for up to 50 Company Files.

$1999/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer, Exporter, Deleter
  • Unlimited Users
  • Unlimited Records
  • Up to 50 companies

Dancing Numbers: Case Study

Frequently Asked Questions

 
How and What all can I Export in Dancing Numbers?

You need to click "Start" to Export data From QuickBooks Desktop using Dancing Numbers, and In the export process, you need to select the type you want to export, like lists, transactions, etc. After that, apply the filters, select the fields, and then do the export.

You can export a Chart of Accounts, Customers, Items, and all the available transactions from QuickBooks Desktop.


How can I Import in Dancing Numbers?

To use the service, you have to open both the software QuickBooks and Dancing Numbers on your system. To import the data, you have to update the Dancing Numbers file and then map the fields and import it.


How can I Delete in Dancing Numbers?

In the Delete process, select the file, lists, or transactions you want to delete, then apply the filters on the file and then click on the Delete option.


How can I import Credit Card charges into QuickBooks Desktop?

First of all, Click the Import (Start) available on the Home Screen. For selecting the file, click on "select your file," Alternatively, you can also click "Browse file" to browse and choose the desired file. You can also click on the "View sample file" to go to the Dancing Numbers sample file. Then, set up the mapping of the file column related to QuickBooks fields. To review your file data on the preview screen, just click on "next," which shows your file data.


Which file types are supported by Dancing Numbers?

XLS, XLXS, etc., are supported file formats by Dancing Numbers.


What is the pricing range of the Dancing Numbers subscription Plan?

Dancing Numbers offers four varieties of plans. The most popular one is the basic plan and the Accountant basic, the Accountant pro, and Accountant Premium.


How can I contact the customer service of Dancing Numbers if any issue arises after purchasing?

We provide you support through different channels (Email/Chat/Phone) for your issues, doubts, and queries. We are always available to resolve your issues related to Sales, Technical Queries/Issues, and ON boarding questions in real-time. You can even get the benefits of anytime availability of Premium support for all your issues.


How can I Import Price Level List into QuickBooks Desktop through Dancing Numbers?

First, click the import button on the Home Screen. Then click "Select your file" from your system. Next, set up the mapping of the file column related to the QuickBooks field. Dancing Numbers template file does this automatically; you just need to download the Dancing Number Template file.

To review your file data on the preview screen, just click on "next," which shows your file data.


What are some of the features of Dancing Numbers to be used for QuickBooks Desktop?

Dancing Numbers is SaaS-based software that is easy to integrate with any QuickBooks account. With the help of this software, you can import, export, as well as erase lists and transactions from the Company files. Also, you can simplify and automate the process using Dancing Numbers which will help in saving time and increasing efficiency and productivity. Just fill in the data in the relevant fields and apply the appropriate features and it’s done.

Furthermore, using Dancing Numbers saves a lot of your time and money which you can otherwise invest in the growth and expansion of your business. It is free from any human errors, works automatically, and has a brilliant user-friendly interface and a lot more.


Why should do you change the Employee status instead of deleting them on QuickBooks?

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments.


Is it possible to use the Direct Connect option to sync bank transactions and other such details between Bank of America and QuickBooks?

Yes, absolutely. You can use the Direct Connect Option by enrolling for the Direct Connect service which will allow you access to the small business online banking option at bankofamerica.com. This feature allows you to share bills, payments, information, and much more.


Why should do you change the Employee status instead of deleting them on QuickBooks?

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments.


What are the various kinds of accounts you could access in QuickBooks?

QuickBooks allows you to access almost all types of accounts, including but not limited to savings account, checking account, credit card accounts, and money market accounts.

Get Support

Bulk import, export, and deletion can be performed with simply one-click. A simplified process ensures that you will be able to focus on the core work.

Worried about losing time with an error prone software? Our error free add-on enables you to focus on your work and boost productivity.

Close X
Call Now+1-800-596-0806
Top