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[External] [FUNDSVCS] How should finance record pledges from donors who plan to use a DAF to pay off the pledge

  • 1.  [External] [FUNDSVCS] How should finance record pledges from donors who plan to use a DAF to pay off the pledge

    Posted 08-14-2019 12:45 PM
    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> Make a gift today at https//www.spalding.edu/donate<https/www.spalding.edu/donate> 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: [EXTERNAL EMAIL] WARNING: This email originated from outside of SCAD. Do not click links or open attachments unless you recognize the sender and know the content is safe. 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 stephanie.carper@us.mcd.com<mailto:stephanie.carper@us.mcd.com> | www.rmhc.org<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.rmhc.org&d=DwMFaQ&c=pFzAfbLt3uYKe9jAqU5I4g&r=ahC1X8XEbG-zsVOX9kr6hj-7xjYl_64qI8R9iBOffcM&m=aUAsFob67bvVLAgKpXNrEwJpe5x6xqWOqjfxZJNZhCQ&s=wrUi7A0oLCGwxFBPkYIgXiuycBnvpK4gZxJC_Py2vFw&e=> <image002.jpg> ** This email originated from an EXTERNAL sender to CHOP. Proceed with caution when replying, opening attachments, or clicking links. Do not disclose your CHOP credentials, employee information, or protected health information to a potential hacker**.