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How to Prepare End-of-Year Donation Acknowledgment Statements in QuickBooks

Before a donor can claim a tax deduction for any one-time contribution of $ 250 or more, the IRS requires a written acknowledgment of the contribution from the nonprofit organization. Non-profit organizations generally send these acknowledgments to donors no later than January 31 of the year following the donation.

QuickBooks Premier for Nonprofits has a nice built-in report called the Donor Contribution Summary that many nonprofits can use to prepare their end-of-year donation recognition statements. However, this report includes all income, including fees for services that are not tax deductible. But you can create a custom report in QuickBooks that excludes these fees. Here are the instructions:

1. Go to Reports> Custom transaction detail report.

2. Click the Modify Report button.

3. Select your date range, most likely “Last Fiscal Year”.

4. Select Cash for the basis of the report.

5. Select Customer in the Total box.

6. Check the columns you want in the report and uncheck the columns you don’t want; at least I recommend using Date, Name, Memo and Amount paid.

7. Select the Filters tab.

8. Select Account in the Filter box, Multiple accounts in the Account box, and check the revenue accounts you want to include in the report.

9. Select the Header / Footer tab and change the report title to Donor Contribution Summary.

10. If you want each donor to print on a separate page, check the box next to “Page break after each parent grouping” after clicking the Print box.

11. Once you have the report looking the way you want, click the Save button.