How to Setup Classes to Track Fund Balances in QuickBooks for Nonprofits |

How to Setup Classes to Track Fund Balances in QuickBooks for Nonprofits

Published 02/04/2010 |

I finally got QuickBooks downloaded. I'm going to be using QuickBooks for Nonprofits. I see that they already have a class in the drop down called M&G – is that different than G&A? Also, there is already a fundraising class – I did not see Programs class, so I think I'll have to add that one (and any sub-classes under programs). One thing I'm unsure about is that we have money coming in that will go to specific nonprofits (as grants). We will have a bunch of projects on our site that eminate out of existing 501c3 organizations. People will donate to a specific project – and then my non-profit organization will then distribute the funds to these particular nonprofit organizations (we act like an intermediary). How would those collected funds (donations) come in and go out via classes?

The money coming in for specific non-profits are designated donations and should be included in your temporarily restricted funds. I love QuickBooks but I really don't like the classes that are included in the nonprofit sample file because they aren't grouped by fund type. Instead, your classes should look something like this:

Unrestricted
   G&A
   Fundraising
   Programs
      Program 1
      Program 2

Temporarily restricted
   Designated donations
   Grants
      Grant 1
      Grant 2

Permanently restricted
   Endowments
      Endowment 1
      Endowment 2

You use sales receipts for donations and invoices for pledges. Make sure to use undeposited funds and go to Banking > Make Deposit to group your payments so they match the actual bank deposit you’re making. The steps for pledges are Customers > Create Invoices, Customers > Receive Payments, Banking > Make Deposits. The steps for donations are Customers > Enter Sales Receipts, Banking > Make Deposits.

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Ruth Perryman - QuickBooks Specialist Written by +Ruth Perryman, CMA, CFE, CFM, MBA

Ruth has provided QuickBooks help to thousands of businesses around the world since 1996. She is an Intuit Solutions Provider, an Advanced Certified QuickBooks ProAdvisor, and a member of the Intuit Trainer/Writer Network. She is also certified in QuickBooks Point of Sale and QuickBooks Enterprise Solutions.

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