How To Record Pass-Through Contributions in QuickBooks Online

How To Record Pass-Through Contributions in QuickBooks Online

Author: Desarie Anderson April 12, 2020 Duration: 17:08

Hello again everyone and welcome back to the podcast.

Today's show is going to be a combination of this podcast and a YouTube video demonstrating what I'll be discussing today.

The topic of discussion today is how to correctly record pass-through contributions in QuickBooks online.

So what's a pass-through contribution?

A pass-through contribution is a contribution made to one non-profit entity (referred to as the recipient), who then transfers the funds to a second non-profit organization called the beneficiary)

This type of transaction is referred to as an "agency" transaction.

In some cases, a non-profit may collect funds from its members in an agreement to use the money collected to purchase a particular agreed-upon item

So whether a non-profit receives a contribution that it intends to pass on to another organization or if it collects money from its members with the intention of purchasing an agreed-upon item, the way the transaction is recorded in QuickBooks under either scenario is the same. 

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Navigating the unique financial landscape of a non-profit requires more than just software proficiency; it demands a clear understanding of the principles that govern charitable accounting. QuickBooks Online and Accounting For Non-profit Bookkeepers, hosted by Desarie Anderson, bridges that critical gap. This podcast delves into the practical application of QuickBooks Online specifically tailored for non-profit bookkeepers, moving beyond simple data entry to explore how the platform can be effectively structured to manage donor-restricted funds, program expenses, and grant reporting. Listeners will gain insights into aligning their bookkeeping practices with fundamental non-profit accounting standards, turning their software into a powerful tool for transparency and compliance. Each episode focuses on actionable strategies, from setting up the chart of accounts correctly to troubleshooting common reconciliation issues that arise when tracking contributions and functional expenses. Desarie draws from her professional experience to explain not just the 'how' but the 'why' behind the processes, empowering bookkeepers and financial volunteers to build accurate, meaningful financial records that truly serve their organization's mission. This is a dedicated resource for anyone looking to build confidence and competence in the specialized world of non-profit finance.
Author: Language: English Episodes: 5

QuickBooks Online and Accounting For Non-profit Bookkeepers
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My name is Desarie Anderson and I’m a Certified Public Accountant that specializes in nonprofit bookkeeping and accounting. My new podcast is based on the content of my YouTube channel. This podcast was created for nonpr…