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July 21, 2024
Question

Donations

  • July 21, 2024
  • 1 reply
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We area church that gets donation from members for other organizations outside of our church. When we pass that money to organization is that an expense to our income?  We do not budget for this kind of income. We segregate it in a designated fund.

1 reply

July 21, 2024

Thanks for posting your concern here in the Community space, @pcarl.

 

I'm here to lend a hand in managing your donations for an organization in QuickBooks Desktop (QBDT).

 

When you make donations, this won't be an expense to the income. However, this is a charitable contribution.

 

We're unable to move the money directly, but we can set up a clearing account to record this in QBDT. This way, we can move it from one account to another. This account will hold a $0.00 balance because you'll take out the amount you put in.

 

You can follow the steps below on how to do so:

 

  1. Go to the Lists menu and choose Chart of Accounts.
  2. Right-click anywhere in the Chart of Accounts screen, then select New.
  3. Click the Bank radio button and hit Continue from the Add New Account window.
  4. In the Account Name field, enter Clearing Account.
  5. Once done, leave the opening balance as 0.
  6. Select Save & Close.

 

After that, this article can guide you on the detailed next steps to use the clearing account to move the money: Set up a clearing account.

 

You can also see the donations made by pulling up a report in QBDT. To learn more about running and customizing reports in QBDT, you may check these articles:  

 

 

I'll keep this thread open for more questions about entering donations. I'll be here to help. Keep safe always.