How to Book Event Supplies in QuickBooks for Nonprofits

Published 03/03/2010 |

I work with a non-profit, and we do a cabaret show twice a year to make money to help our cause. We also have a couple other events to aid in making money for the cause. Our cause is supporting families that are affected or effected with AIDS. During the show and during various other fund raisers we purchase supplies such as food and beverages for our guests. We do not charge anything other than the ticket to attend. We typically do not use all the supplies so we save them for our next event. How would I record this type of entry? Then how would I record the remainder of the products that we save for the next show or event? We are trying to make sure we are doing this right so that the numbers on the 990 are correct. I do have class tracking set up for each type of event and the various types of income for that event. Can you help me out?

I am not a tax advisor so you should check with your CPA, but since you are not re-selling the items I don’t see any reason for you to book them to inventory. You should be able to book them directly to an expense or cost of goods sold account.

Also, you should only 1099 payments for services not products. Make sure to use separate expense accounts to track the two types of payments so you can map only the payments for services to your 1099’s. Some businesses also add a separate expense account for reimbursements as well, which also don’t need to be 1099’ed.

As for classes, you should set them up to track your fund balances. They should look something like this:

Unrestricted funds
   G&A
   Fundraising
      Event 1
      Event 2
   Programs
      Program 1
      Program 2

Temporarily restricted funds:
   Donor restricted
       Program 1
       Program 2
   Grants
      Grant 1
      Grant 2

Permanently restricted funds:
   Endowments
      Endowment 1
      Endowment 2

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

Ruth is the president of The QB Specialists, Inc. and 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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