Our charity received a loan. Now the loaner wishes to convert the loan to a charitable donation. What entry should we make to reallocate the loan to be a donation?

Hi jtlilley-me-com,

Welcome to Community!  QuickBooks Online enables you to record and track in-kind donations effortlessly.  However, converting a loan to a charitable donation, may impact other areas of your books.  For this reason, I recommend speaking with an accounting professional.  They will be able to provide their expertise and best course of action, to ensure a positive outcome.  If you don't have an accountant, we can help you locate a ProAdvisor in your area.

If you have any other questions, feel free to reach back out.  We would be happy to help!