Record Online Donations from PayPal or Stripe in QuickBooks Online

Recording online donation transactions from payment processors like Stripe, PayPal, Vanco Payments Solutions and others is often the process I see many nonprofits neglect to record properly in QuickBooks Online.

Using a sales receipt to record your donations and merchandise sale from your external platforms in QuickBooks Online provides meaningful reports and helps you stay on top of your restricted and unrestricted funds. You will need to capture the gross revenue and associated fees as they occur to ensure your data in QuickBooks is accurate and matches what is happening in real life.

In this tutorial, I will show you how to record your online giving transactions from any merchant payment processor using a sales receipt in QuickBooks Online. Watch the video and read the guide to get started.

If you are tracking your donations in an external system, you need to use a sales receipt to record income in QuickBooks Online in lump sum batches based on how frequently the funds are deposited to your bank account.

  • Create the payment processor as a new customer or select the name from the list

  • Leave the email field blank

  • Enter a sales receipt date

  • Location = without donor restrictions for general donations

  • Payment method = online giving or something else

  • For the reference number field, enter the ending batch date of the transactions

  • Leave the Deposit To field as the Undeposited Funds to record the merchant fees later

  • Record the gross amount of the transaction

  • Select a product or service in the category field or create a new one

  • Description = purpose of the online donation

  • Enter an amount

  • Select a class from the dropdown field

  • Repeat the description field message in the memo field In the attachment section, attach a copy of the batch report from the external system

  • Click save and close to save the sales receipt

That is how to record donations from external systems in QuickBooks Online using a sales receipt.


 

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How to Record Online Donations from PayPal or Stripe in QuickBooks Online by Goshen Bookkeeping & Co.
 

Do you have questions about using QuickBooks Online to run your nonprofit? Contact me - I am happy to help!