We’ve mentioned previously how a non-profit organization can use QuickBooks® to review its non-profit financial statements, a nonprofit also needs to track specific KPIs, including the highest paying donors and program reports. This table below shows specific non-profit KPIs and their QuickBooks® Pro counterparts.
QuickBooks® Pro Reports Equivalent
Although tracking these outcomes in QuickBooks® is fairly easy for a non-profit, it does require some initial set-up that in order to create the proper parameters in QuickBooks® to reflect non-profit terminology.
Here are three KPIs that non-profits track and how to set up QuickBooks® to include these specific non-profit key performance indicators, otherwise known as “outcomes” in non-profit terms.
Tracking In-Kind Contributions
Many non-profit organizations frequently receive trades for goods and or services; or donors will purchase items on behalf of a non-profit in lieu of making a cash donation. These types of donations are considered “in-kind” and are recorded according to the retail value of the gift. However, because this is a “value” and not an actual transfer of cash to the organization, it cannot be recorded under regular income. Instead, QuickBooks® users can create a new income account within their system labeled “In-Kind Donations” to track these specific donations.
Corporations and foundations will oftentimes match others’ donated funds. It is also common during fundraising campaigns for a donor to offer a matching gift if the organization is able to raise X amount of dollars. These donations need to be tracked separately and can be done by making a change to the sales form in QuickBooks®. If you rename “Ship Via” to “Match For,” you can track these donations and even sort in the Profit and Loss statements by filtering by “shipping method” to see all matching grants and donations.
Some donations include donor stipulations that specify how the funds are to be spent. Funding may be directed to a specific department, fund, or program. Under such circumstances, in order to ensure the money is only appropriated to its designated recipient, QuickBooks® users can set up a specific Customer Type labeled “Restricted Grants.” This simple label makes reporting and tracking much easier for restricted funds. Users can run a Restricted Funds Profit and Loss Statement by filtering by customer type. This specialized P & L report will also provide the total Restricted Funds received by the organization, the amounts spent, and the balance – which can then be recorded on the organization’s balance sheet.