Restricted donations should be tracked in QuickBooks using three coordinated tools: dedicated income and equity accounts in the chart of accounts, Classes to separate restricted activity by program, and Projects to track individual grants from receipt through release. I have set up this system for several nonprofits, and the combination keeps donor funds compliant, audit-ready, … Read more
You pulled up your favorite charity’s page, ready to claim the deduction on your return, and noticed something odd on the IRS database. The nonprofit is on the auto-revocation list. Now you are wondering whether your earlier gift — or anything you send in the next few weeks — will still be tax-deductible. I have … Read more
When I first heard about fiscal sponsorship, I assumed it was some kind of workaround for charities that couldn’t get their own tax status. After spending weeks digging through IRS guidance, sponsor agreements, and real user stories on Reddit, I realized it is something more interesting: a legal structure that lets charitable projects receive tax-deductible … Read more
If you are starting a nonprofit or launching a charitable project, you have probably encountered two terms that sound almost identical: fiscal sponsorship and fiscal agency. The distinction between these two arrangements is not just semantic. It determines whether your donors can claim tax-deductible contributions, who controls the money, and what legal liabilities you carry. … Read more
If your nonprofit just received $25,000 from a donor who specified it must go to three specific families, you do not get to record that as contribution revenue. I have seen this mistake on more than one set of books, and the IRS notices it too. Our team has spent years working through these scenarios … Read more
If your nonprofit raises money from individual donors, there’s a strong chance some of those donors work for companies that will match their gift – often dollar for dollar. Research shows 84% of donors are more likely to give when a match is available, yet many nonprofits leave that money on the table simply because … Read more
If you have ever stared at a bank deposit from Stripe, PayPal, or Donorbox and wondered whether it actually matches the donations in your CRM, you are not alone. Knowing how do you reconcile a donation platform payout is one of those nonprofit bookkeeping tasks that looks simple until you try it the first time. … Read more
Nonprofits should record gross donations as the total contribution amount before any processing fees or deductions, then show those fees separately as an expense. Net deposits represent the actual cash that hits the bank account after payment processors, platform fees, or other deductions take their cut. Understanding the difference between gross donations and net deposits … Read more
Yes, donation processing fees should be recorded as expenses. When a donor gives $100 online and the payment processor charges a $3 fee, your nonprofit records the full $100 as contribution revenue and the $3 as a separate processing fee expense. You never net the fee against the donation amount. This approach follows the gross … Read more
If you run a nonprofit and accept donations through Stripe, you have probably asked yourself the question: how should nonprofits record Stripe donation fees? I have helped several small 501(c)(3) teams work through this exact issue, and the answer is straightforward once you understand the principle. Record the full donation amount as revenue in your … Read more