We recommend speaking to your accountant about how to record the processing fees when they are paid for by the donor. Since the processing fees are paid directly by the donor to a third part vendor and not the non-profit organization, they are typically not tax-deductible. Your accountant should make the final determination.
With the Quickbooks export, the processing fees can be handled in two ways.
1. Do not include the processing fees paid by the donor as income.
In this scenario, you would export using the AMOUNT NET OF PROCESSING FEES from AssociationSphere. You will need to do a manual entry in Quickbooks to account for the processing fees that you paid as the organization.
2. Include the processing fees paid by the donor as income.
In this scenario, you would export using the AMOUNT from AssociationSphere. You will need to do a manual entry in Quickbooks to account for the processing fees that you and the donor paid.
Examples:
Use the Statement from the Billing section of your AssociationSphere account to see the online transactions, fees and deposit amounts. Below is an example:
In this example, Brad Jones paid the $.99 processing fee, but Sally Smith did not - the organization paid the $17.79 in processing fees.
If you use the AMOUNT NET OF PROCESSING FEES, this would be the effect in Quickbooks. When you do "Make Deposit" in Quickbooks, you would select the $20, the $500 and the $(17.79), so the net going to the bank account would be $502.21.
If you use the AMOUNT, this would be the effect in Quickbooks. When you do "Make Deposit" in Quickbooks, you would select the $20.99, the $500. the $(.99) and the $(17.79), so the net going to the bank account would be $502.21.