How to Book Donated Products and Services in QuickBooks |

I hope you don’t mind, but I have what a hope is a quick question. I volunteer at a non-profit horse rescue and sanctuary) and I try to help with their books.

We are having an issue and don’t know how to handle it in QuickBooks correctly.

We have a number of vendors who provided services and products, submitted invoices for the services / products, and then basically told us not to pay the invoices and consider the services / products donations.

How is the best way to handle this? Do we enter each invoice and mark it as a donation? If so, how would we do it?

Do you have a better idea?

I am not a bookkeeper. Our CPA does not use QuickBooks and just needs us to break out the numbers correctly.

Any help or advice you can give would be greatly appreciated. Thank you so much!

You should book donated products and services as both in-kind revenue and in-kind expense.

Be careful not to value the donation on the donor acknowledgement. The IRS doesn’t allow it. Not to mention services are never tax deductible. Simply describe what you received with no value.

Here’s a blog post I wrote that describes it in more detail:

How to Enter Non-Cash Donations in QuickBooks”

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This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.

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

Ruth is the president of The QB Specialists, an Intuit Premier Reseller that offers huge savings and expert advice on QuickBooks POS and QuickBooks Enterprise. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks POS and QuickBooks Enterprise and has provided expert QuickBooks help to thousands of businesses all over the world since 1996.

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