How is a donation recorded in accounting?

In Springly, all modules are connected to one another. When you record a donation in Community > Donations, a book entry is automatically created. This article explains the accounting impacts a donation has on your books.

If you import donations via an Excel file, the import does not create the corresponding book entries. You then enter each entry manually.

Example used in this article: a $50 donation recorded for the contact Claire Martin of the organization My Org 123, with a first payment of $20 in cash and a second payment of $30 by check.

• Which book entries are created when a donation is recorded?
• What does the donation's accrual entry look like?
• How is a donation paid in several installments recorded?
• Where can I find donations in the accounting documents?

Which book entries are created when a donation is recorded?

When a donation is recorded, one or more book entries are created:

• The first is tied to the donation itself (accrual),
• The following ones are tied to the individual payments.

What does the donation's accrual entry look like?

The accrual entry credits account 754 (donations) for $50. Since a donation is always linked to a person, account 467 (user account) is debited — $50 in this example.

Here is what this line looks like in the Journal.

Until the donation is paid in full, it appears in the accounts receivable list.

How is a donation paid in several installments recorded?

Recording the first payment

Each time a payment is recorded, an entry is created. The account credited is the intermediary account 467 (user account), credited for the amount paid — $20 in this example.

The account debited depends on the payment method used:

• Cash payment: account 531 (Petty cash)
• Bank-impacting payment (debit card, wire transfer, direct debit…): account 512 (bank)
• Check payment: account 511200 (checks to collect)
• Online payment: account 517 (E-wallet)

In this example, account 531 is therefore debited $20.

Here is what the payment line looks like in the Journal.

Since the payment has not been made in full, the donation still appears in accounts receivable, but the amount paid is still shown.

Recording the second payment

You then record the second and final payment. The account credited is still the intermediary account 467 (user account), credited for the amount paid — $30 in this example.

The account debited depends on the payment method used. In this example, Claire Martin paid by check: account 511200 is therefore debited $30.

Here is what the donation and its two payments look like in the Journal.

Since the donation has been paid in full, it no longer appears in the accounts receivable list.

Where can I find donations in the accounting documents?

You can find all of your donations under account 754 - Donations and Fundraising (by default) in your accounting documents: the General Ledger, the Profit and Loss, and the Trial Balance.

The General Ledger

The Profit and Loss

The Trial Balance