We use a gift subtype in RE of Binding and those are the only pledges that Finance counts. We already know that’s one of the reasons Development and Finance revenue numbers usually differ, even though our cash reconciliation ties out.
From: Advancement Services Discussion List <
FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Clark, David
Sent: Wednesday, August 14, 2019 9:30 AM
To:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG
Subject: [External] Re: [FUNDSVCS] How should finance record pledges from donors who plan to use a DAF to pay off the pledge
Stephanie,
Raiser’s edge should have the ability for you to mark the pledge so that it can be excluded from Finance. It is not a pledge receivable and Finance will not/should not book that pledge. You need to record that pledge in your system, even if it is not legally binding, because that’s what we do. We track the money that is expected to come in. We track the behavior of our donors. That should all be localized to a single system for accuracy if possible. If finance is still concerned about it, some institutions refer to pledges that they know will be coming from DAFs as a different gift type – I’ve seen intentions used instead of pledges. Then there is no chance of Finance booking it as a receivable, but you can still track the expected gift in your donor system and the payment is not really a pledge payment.
David
David Clark
Manager, Advancement Services & Data Support
Office of Advancement
Spalding University
845 S. Third Street
Louisville, KY 40203
502-873-4316
Dclark07@spalding.edu<mailto:
Dclark07@spalding.edu>
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From: Advancement Services Discussion List <
FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of John Taylor
Sent: Tuesday, August 13, 2019 9:46 PM
To:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG>
Subject: Re: [FUNDSVCS] How should finance record pledges from donors who plan to use a DAF to pay off the pledge
Agreed.
Stephanie, locate my paper on Who Can Make a Pledge and Who Can Pay It Off on the download site. It addresses both legal and axxou ting aspects of this.
John
John Taylor
919.816.5903
johntaylorconsulting@gmail.com<mailto:
johntaylorconsulting@gmail.com>
Big ideas; small keyboard
On Aug 13, 2019, at 9:41 PM, Bill Wong <
wswong@scad.edu<mailto:
wswong@scad.edu>> wrote:
Well, the donor can’t really pledge money that isn’t there’s. So, you don’t even have a pledge. Now, if you want to track those promises to encourage someone else to pay internally on a spreadsheet on your desktop, no one would stop you. —Bill
Sent from my iPhone
On Aug 13, 2019, at 9:30 PM, Carper Stephanie <
stephanie.carper@us.mcd.com<mailto:
stephanie.carper@us.mcd.com>> wrote:
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I’m curious how Finance records a pledge (if at all) when a donor intends to direct gifts from his/her donor-advised fund. The finance team at my organization was not aware that donors cannot use grants from DAFs to pay existing pledges. They would recognize the full amount of revenue in the year the pledge was made and record the gifts from the donor’s DAF as pledge payments. Now that they are aware of these restrictions, we are struggling to determine how to book the pledge (if at all). The advice we received from our auditors regarding a similar situation is that from an accounting perspective it doesn’t matter who pays the pledge. But I am uncomfortable recording gifts from a DAF as a pledge payment in Raiser’s Edge. I would prefer to just reduce the pledge by the amount of the gift from the DAF. However, this will create reconciliation issues between RE and FE, so Finance doesn’t want to do that.
I would appreciate your thoughts.
Thanks,
Stephanie
Stephanie Carper | Development Manager, Major and Planned Gifts
Ronald McDonald House Charities, Inc.
110 N. Carpenter St, Chicago, IL 60607-2101
Cell: 312.520.8370
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