Donations can be recorded using the Accounts Receivable Module with a modified (custom) statement which can then be used for income tax purposes. This, however, requires manually maintaining the custom statement when the government makes any changes to their requirements. I try to avoid this kind of manual work as often as possible.

For the many churches and charities i work with i use a program call Donation by Software4nonprofits. This program maintains the donations, provides reports and produces excellent receipts for income tax purposes which can then be emailed to the donors or printed and mailed. I have more than thirty of my clients using this program and all are pleased with the ease of use.

Donation does not integrate with Sage 50. There is a report which can be run daily, weekly, monthly or as you wish which can used used as an input through a General Journal which can be as easy as two lines or as long as multiple lines depending on your categories and the donations to each. On an average of fifty envelope donations per week from the start of input until the Sage 50 entry is posted would only take a person about 45 minutes. More experience with both programs and the time lessens significantly.

Hope this helps

disclaimer: while I do know the originator of Donation and I use it significantly, I have no financial gain from its promotion.