Log in to your Xero account and navigate to the “Settings” menu.
Select “Chart of Accounts” from the drop-down menu.
Click the “Add Account” button.
Select the account type as “Revenue” since charity donations are typically classified as revenue for tax purposes.
Choose a suitable account name, such as “Charity Donations.”
Under the “Tax Rate” section, select “Exempt” from the drop-down menu to indicate that charity donations are not subject to VAT.
Choose an appropriate account code for the new nominal code. You may wish to choose a code that is easy to remember and clearly relates to charity donations.
If you wish to add a description for the nominal code, you can do so in the “Description” field.
