Managing Multi-Donor Grants

When multiple donors contribute to the same restricted purpose, GrantLink tracks each contribution while providing unified grant-level reporting.

The Challenge in QuickBooks

QuickBooks Online has a limitation: Projects can only have one customer. This creates problems when:

• Multiple donors fund the same restricted purpose
• You need individual donor credit for acknowledgment letters
• You also need combined project-level reporting

The old workaround required creating Sales Receipts per donor, then zero-net Journal Entries to push revenue into a Project. This is error-prone and time-consuming.

How GrantLink Solves This

GrantLink separates donor tracking from grant tracking:

Concept	How It's Tracked
Individual donors	Fund receipts with source information
Combined grant totals	Grant entity with unified dashboard
Expenses	Allocated to the grant (not donors)

No workarounds needed. No extra journal entries.

Step-by-Step Workflow

1. Create the Grant

Create a single grant for the restricted purpose:

1. Go to Grants → New Grant
2. Enter the grant details:
   • Name: Audio System Upgrade
   • Type: With Donor Restrictions
   • Award Amount: $50,000 (expected total from all donors)
3. GrantLink creates the QBO Class automatically

2. Record Fund Receipts from Each Donor

As donations arrive, record each separately:

Receipt	Donor	Amount	Source
#1	Smith Foundation	$20,000	Check #1234
#2	Johnson Family	$15,000	Wire
#3	Community Fund	$10,000	ACH
#4	Anonymous	$5,000	Check #5678

Each fund receipt preserves the donor source for acknowledgment letters.

3. Allocate Expenses to the Grant

All expenses are allocated to the grant—not to individual donors:

1. Go to Allocations → Unclassified Transactions
2. Select expenses for the restricted purpose
3. Allocate to the grant
4. GrantLink applies the QBO Class

4. View Unified Reporting

The grant dashboard shows everything together:

┌─────────────────────────────────────────────┐
│  Grant: Audio System Upgrade                │
├─────────────────────────────────────────────┤
│  Award Amount:      $50,000                 │
│  Funds Received:    $50,000 (100%)          │
│    - Smith Foundation:     $20,000          │
│    - Johnson Family:       $15,000          │
│    - Community Fund:       $10,000          │
│    - Anonymous:            $ 5,000          │
│                                             │
│  Total Spent:       $35,000                 │
│  Remaining:         $15,000                 │
└─────────────────────────────────────────────┘

Donor Acknowledgments

Export fund receipt history for thank-you letters:

1. Go to grant Overview tab
2. View the receipt history
3. Export for acknowledgment letters

Each receipt includes:

• Donor/source information
• Amount
• Date received
• Source reference (check number, etc.)

Special Scenarios

Matching Gifts

A donor gives $10,000, and their employer matches:

• Receipt 1: Original Donor - $10,000
• Receipt 2: Employer (Matching Gift) - $10,000

Both credited to the same grant.

Pledge Payments

A donor pledges $50,000 over 5 years:

Record each payment as a separate fund receipt. GrantLink tracks the running total.

Note: Under GAAP, an unconditional multi-year pledge may be recognized as revenue when promised (with a receivable), not only when cash is received. Work with your accountant on proper revenue recognition.

In-Kind Contributions

A donor contributes equipment instead of cash:

• Record fund receipt with Source Type: "Other"
• Notes: "In-kind contribution - Audio equipment valued at $5,000"

Note: In-kind contributions require separate GL entries in QuickBooks (debit asset/expense, credit in-kind revenue). GrantLink's fund receipt provides grant tracking, but the accounting entry must be recorded separately.

Best Practices

1. Consistent source documentation — Use consistent naming: "Check #1234", "Wire - Ref 987654"
2. Link deposits promptly — Process within a week
3. Separate acknowledgment tracking — Export fund receipt data for donor letters
4. Reconcile monthly — Verify total fund receipts match QBO deposits