Easy Tech TutsHow to Record Donations in QuickBooks Online, Enter Grants & Contributions Received Easily 2026
By Impran M N
Non-profits, religious organizations, and charitable foundations need to track every dollar of funding accurately, whether it comes from an individual donor, corporate sponsor, or grant program. This guide covers setting up dedicated donation accounts and recording both immediate contributions and grant deposits that arrive through your bank feed.
01Set up your donation accounts
In the Chart of Accounts, verify or create a donation revenue account, separating restricted and unrestricted funding if needed.
02Create a donation product item
Add a dedicated Products and Services item for Donations Received to keep incoming revenue mapped cleanly.
03Record an immediate contribution
Click + New, select Sales Receipt, choose or create the donor profile, and select your donation item with the amount received.
04Set the deposit account and memo
Choose the checking or savings account where the funds landed, then note details like Annual Winter Gala Contribution in the memo.
05Track grants through bank feeds
For direct deposits, open Bank Transactions, expand the inbound row, select your non-profit revenue category, and tag the grantor's name.
Frequently asked questions
Should I set up separate accounts for restricted and unrestricted funds?
Yes, pairing your general donations line with specific restricted or unrestricted accounts helps you track how funds can legally be used.
How do I record a grant that arrives as a direct bank deposit?
Use the Bank Transactions feed to categorize the deposit under your non-profit revenue account and tag the corporate or agency name.
Can I create a dedicated line item just for donations?
Yes, setting up a Products and Services item specifically for donations makes it easier to map and report on contribution revenue.
How do I see total funding received across all sources?
Filter the Statement of Activity, essentially your Profit and Loss report, to isolate total donation and grant income streams.
Watch the full walkthrough
The same steps, demonstrated on screen from start to finish.
