DonorWise TM
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How to classify transactions in DonorWise



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Each donation processed is classified by several factors:

payment type


Entries into DonorWise are made in batches, a logical grouping of transactions.
How you batch your transactions relates strongly to your bank reconciliation process. Ideally you should batch transactions in such a way to make bank reconciliation easier.
There are other factors that may affect the making of batches. For example, wire transfers to your bank may occur without your knowledge and you may not know about them until you receive a bank statement. It may make sense to batch these together.

Possible recommended groupings

By deposit and date. With this group, reconciliation is easier because the batch and bank statement will match easily.
With a large volume of daily donations, you may want to separate your batches based on type of funds, bank used, or currency used.
With a minor volume of daily donations, you may choose to combine a week's worth of donations into one batch, based on how they were deposited.

Discouraged groupings

Logically, a deposit into the bank may constitute several batches but you would normally not have a batch divided between several deposits.
A batch is posted into your General ledger according to the accounting period. Thus a batch can never contain donations from different periods (months).
Large batches. Although the batch size is not limited either in DonorWise or in your General ledger, it is easier to locate errors if batches are not too long.

Currency and exchange rate

You may receive donations in currencies other than your local currency. Due to exchange rate issues, the value of the exchange may change between the receipt of the gift and the bank posting. See Currency for more information on this process.

Payment types

Payment type refers to how the money is received – as cash, cheque, bank transfer. This is identified for each entry into DonorWise. The payment types and their codes are defined during set-up.
Donations of different payment types can be combined in a single batch, and DonorWise will display a running total for each payment type as you complete the batch.
If you have a sufficient number of donations of different types, it may be better to have a separate batch for each payment type.


Each donation is assigned to a donor. If a donor does not exist, a new contact must be set up.


A designation is the person, ministry, or event for which a donation was given. The name of the designation appears on the receipt.
Each designation is a separate contact ID.
Each designation is assigned to a responsibility centre in the General ledger; a responsibility centre can have multiple designations assigned to it.


Accounts classify donations (and other transactions) by type.
DonorWise synchronizes its chart of accounts with the integrated General ledger, thus ensuring that accounts used are valid.
DonorWise designations are classified as to type (Ministry, Staff, etc.). Each designation has a default account and assessment scheme based on this type. This would usually be 40xx for Staff donations and 41xx for Ministry donations.
At the time of set-up, the ministry will determine which accounts are used for the following:
Donations received for staff designations
Donations received for ministry designations
Other items (non-donations) received and receipted through DonorWise.
The “Suspense” designation (designation unknown).
The clearing account.


Assessments are used to allocate a portion of contributions to areas of operations that are funded without direct donations.
Assessments are calculated automatically by DonorWise when a donation is recorded.
Assessment schemes are determined during the system set-up; the schemes can later be changed if the ministry so decides. Changes will affect new donations only.
When transactions are posted from DonorWise into the integrated General ledger, the assessments are calculated automatically as part of the journal and posted accordingly.

Classification exceptions

Unclear items (unknown donor or designation)

When funds are received, it is possible that they cannot be immediately and adequately classified by donor or designation. However, all funds should be deposited immediately; thus all funds need to be processed. DonorWise allows you to process “unclear” items where:
The identity of the donor is not clear and requires research (use the “Unknown” donor).
The exact designation (purpose) of the funds is unknown and requires research (use the “Suspense” designation).
Items using the Unknown donor contact can be seen on the Unresolved Donor screen in DonorWise.
They must be cleared in 6 months or the system will prevent new periods from being opened.
A correction would be made in DonorWise to re-assign the donation to the correct donor or to the 'Anonymous' donor if it is decided that the actual donor will not be determined.
Items using the Suspense designation are managed on the Unresolved Designations screen in DonorWise.
When posted into the General ledger they will appear in a “Donation system suspense” account.
This should be a Balance sheet account in the Other Current Liabilities category (23xx).
A correction will also need to be made to correctly assign the designation once it is determined.
If it cannot be determined then it can be assigned to a default designation that is specified in the system set-up.

Other Receipts (non-donation items)

You may receive funds that are not donations but are received together with donations and must thus be processed through DonorWise.
Non-donation income is tied to a related designation called “Other receipts.”
The “Other receipts” designation does not have a default account or responsibility centre so that any allowed account (in the COA and RC set-up screen) or any responsibility centre can be chosen during data entry.

Anonymous donors or undesignated donations

If a donor chooses to remain anonymous, his wish should be honoured. His donation will be credited to a donor or contact named “Anonymous.”
Some donors may contribute to the ministry without specifying the purpose. Such donations are considered undesignated, and they can be used at the discretion of the ministry. The ministry should still credit these donations into a designation (of their choosing, or a General designation) in DonorWise, so as to keep an accurate record of them.
The leadership may choose to allocate the undesignated donations to various responsibility centres within the ministry. This takes place within the General ledger as an account transfer – which must be supported by appropriately authorized written documentation (a journal voucher or JV).



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