How to account for donations

To record the acceptance of a donation:

1. Open the Transactions page.
2. Locate your bank-imported income transaction or add an income transaction.
3. If you add a new transaction:
   1. For the Account, select the bank account these funds were deposited into.
   2. For the Amount, enter the total donation amount.
4. Open the category field and create a new income account to categorize the transaction to.
5. Select Save.

To record the giving of a donation:

1. Open the Transactions page.
2. Locate your bank-imported expense transaction or add an expense transaction.
3. If you add a new transaction:
   1. For the Account, select the bank account these funds were withdrawn from.
   2. For the Amount, enter the total amount donated.
4. Open the category field and create a new expense account, under the Account Type Operating Expense, to categorize the transaction to.
5. Select Save.

What's next?

In terms of recording the donation acceptance/giving, you're all set! If you're wondering how these items affect your business' bottom line, you can see this in Reports > Profit & Loss, where all income and expenses are included, regardless of type. 

The Reports page is only available in the web browser version of Wave.

If you're curious about how this impacts your tax filings, this varies region to region. It will be best to consult with an accountant, as they'll be best equipped to inform you about how charitable donations are taxed, not taxed, or otherwise need to be recorded in your specific region.