I have never seen an audited financial statement that did not include in the pledge receivable section pledges over five years.
Charlotte McGhee
Vice President for Advancement Services
Office: 312-372-4040
Mobile: 312-286-5269
Email:
cmcghee@grenzglier.com
[https://dl.dropbox.com/s/jvdk7c989i6q5wo/GGA_signature_10x94.png]<http:\\grenzebachglier.com>
Our mission is advancing yours.
grenzebachglier.com<http://www.grenzebachglier.com>
[LinkedIn]<https://www.linkedin.com/company/grenzebach-glier-&-associates/> [Twitter] <https://twitter.com/GrenzebachGlier>
From: Advancement Services Discussion List [mailto:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of Eric Valdescaro
Sent: January 28, 2019 6:42 PM
To:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG
Subject: Re: [FUNDSVCS] Recording pledges beyond five years
John, thanks for your additional clarity and guidance on this.
With appreciation,
Eric
From: Advancement Services Discussion List [mailto:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor
Sent: Monday, January 28, 2019 1:23 PM
To:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG
Subject: Re: [FUNDSVCS] Recording pledges beyond five years
Eric, this is one of the many areas I have suggested to CASE that new language is developed to better accommodate longer pledges.
Do keep in mind that the CASE Guidelines are not "law." Many institutions develop their own protocol in this area - and roughly 9 other categories of "gray areas." I find this to be just fine as long as those exceptions are documented and approved by leadership before going into a campaign - and that those exception parameters remains solid during the entire campaign.
At NC State our leadership approved a pledge length exception 18 months before launching the pre-public phase of the campaign. Here is that policy statement:
• Pledge payment period
o The CASE suggested 5-year payment period will be honored. Exceptions for leadership gifts will be taken to the Chancellor and Vice Chancellor for University Advancement for approval
o If longer pledges are approved, they can be extended no more than 5 additional years (10 years total)
I do not like breaking pledges up (to your point). So the above worked for us. Other institutions I have worked with have discounted the pledge amount over time - while retaining the original amount in their system for donor relations purposes.
John
John H. Taylor
Principal, John H. Taylor Consulting
2604 Sevier St.
Durham, NC 27705
johntaylorconsulting@gmail.com<mailto:
johntaylorconsulting@gmail.com>
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987
On Mon, Jan 28, 2019 at 6:07 PM Eric Valdescaro <
eric.valdescaro@uhfoundation.org<mailto:
eric.valdescaro@uhfoundation.org>> wrote:
Aloha all,
I've read Section 7.7 of the CASE reporting guidelines on campaign pledges and I have a question. Searched the archives and fundsvcs.org<http://fundsvcs.org> and found a 2017 Case Guidelines presentation by someone named John Taylor on this, but that's about it. ;-)
John states on slide 15 you can accept pledges beyond five years but you should establish a policy on how to handle. Sounds great, but I still need a little help on this one.
Essentially, the CASE reporting guidelines state that for pledges beyond five years the institution, "can count a lengthier commitment in whole or in part." It goes on to explain that if a donor wants to make a commitment beyond five years that the pledge should be broken up with the total expected beyond five years being entered in a separate pledge around the fifth year after the first five years of installments have been paid using the example of a $1M pledge broken into two $500K pledges.
I have two concerns. First is how to convey to leadership that we have a commitment for the full face amount when CASE is advising us not to enter it into our database. IOW, using the CASE example, leadership would know there's a $1M pledge, but the CRM would only show a $500K pledge. Not ideal.
Secondly, how do we more easily reconcile with our fiscal office that has accounted for the entire commitment as an asset ($1M in the example), when we only have a portion of that in our fundraising system. (Yes, I understand that our CRM is not an accounting database, but I think it's fair to say that if our fiscal team is aware of a large commitment for $X, the anyone looking for that commitment in our CRM should be able to find it as well.)
One suggestion may be to enter the portion to be received after five years immediately upon commitment, but with a date of record five years out so that it's all there. That's an OK solution, but still one that would leave us explaining to leadership and fiscal that we that we won't find the one commitment at face value in our CRM for the full amount -- and that rather it's been broken up to abide by CASE guidance.
I'm sure I can't be the first institution to run into this. Perhaps I'm missing something. Recommendations appreciated.
Thanks,
Eric
Eric F. Valdescaro
AVP, Advancement Services
University of Hawaii Foundation
This message (including any attachments) is covered by the Electronic Communications Privacy Act, 18 U.S.C. 2510-2521. It is the property of the University of Hawaii Foundation. It may contain confidential information intended for a specific individual and purpose. If you are not the intended recipient, you must delete this message. You are hereby notified that any disclosure, copying, or distribution of this message is prohibited.