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A
agrace1
November 10, 2022
Question

Nonprofit Accounting - Tracking Grants & Restricted Funds

  • November 10, 2022
  • 4 replies
  • 0 views

I would like to know how to best set up Quickbooks to track & manage 8 grants and 11 programs.

 

My plan is to input each program (gardening, outreach, etc) as a Class, and input the grants as specific Customers so I can use the Projects feature.

 

However, how I do I track how much I have in restricted and unrestricted funds? If donors donate to a specific program, that donation would be restricted. Most of our grants are restricted but can be used across multiple programs. Is there a way that I can also properly categorize restricted funds so I know how much is left for each grant, and how much people have donated to each specific program?

    4 replies

    A
    agrace1Author
    November 10, 2022

    ALSO, if we receive a grant, what Class does it go in? Do I separate the grant by class?

     

    For example, if we receive a $20,000 grant, and $10,000 can be used for general operations, $5K for Program #1, $2K for Program #2, and $3K for Program #3, would I break it out like that in my journal entry when I book the receipt of the cash?

    MariaSoledadG
    MariaSoledadG
    November 10, 2022

    Let me guide you on how you'll be able to track grants, agrace1.

     

    Receiving grant funds is vital to continue and advance your mission. And yes, you're right, you can use Class tracking and banking sub-accounts to track individual funds. First, turn on class tracking. I've provided the steps below:

     

    1. Select Settings ⚙.
    2. Select Account and Settings.
    3. Select Advanced.
    4. In the Categories section, select edit ✎.
    5. Turn on Track classes.
    6. Select Save.
    7. Select Done.

     

    Then, set up a class for each fund. This enables you to track the grant separately. Here's how: 

     

    1. Select Settings ⚙, then All Lists.
    2. Select Classes.
    3. Select New, then enter the name of a fund in the Name field.
    4. Select Save.

    Next, track multiple funds with bank sub-accounts. Follow the procedures below:

     

    To set up sub-accounts:

     

    1. Select Settings ⚙, then select Chart of Accounts.
    2. Select New and do one of the following depending on which panel you see.

     

    To give your more detailed steps on how you're going to do fund accounting, I've attached this article for more information: Fund Accounting For Non-Profits. 

     

    Furthermore, QuickBooks provides you with different kinds of reports that give the information that you need. You'll just have to customize them so you'll be able to get the data that you want. Go through this article so you'll know how: Customize Reports In QuickBooks Online.

     

    If there's anything else that you need about tracking grants, let us know we can get back to you as soon as possible. Remember, we're always right here to further assist you.

      T
      trorie
      November 6, 2024

      HI, I was curious to know if you were able to come up with a process to do this? If so, can you reach out to me? I am struggling with the best way to go about setting this up for us to use with our grant tracking and any advice would be great!!!!

      K
      kennedyinvestmentsfl
      February 27, 2025

      Hello! I, too, am looking for a solution to this. Have you found one yet? 

      G
      GSH-CY
      November 19, 2024

      Could someone provide the process for Tracking Grants & Restricted Funds in Quickbooks Desktop (Enterprise 2024 or a training resource? We are unique in that we are for profit but also receive grants and need to associate expenses with the grants as well. We have Members Equity as well and we do fundraising efforts and receive donations. Any assistance would be greatly appreciated. I am going to put this question associated with Desktop as well.

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