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  • 1.  Can recurring payroll deductions be applied to an active Pledge?

    Posted 06-12-2025 07:08 AM

    Hello!

    I have several university employees who want to have their recurring payroll deduction gifts applied to their active pledge. Raiser's Edge allows this in database view, but we are not "allowed" to do this because internally it's been stated that a recurring payroll deduction should not be applied to an active pledge. I still do not have a clear reason why. If an employee desires to use their payroll deduction to pay down their pledge, why is this wrong? Can anyone help me understand?



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    Ponzell Thatcher
    Millersville University
    ponzell.thatcher@millersville.edu
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  • 2.  RE: Can recurring payroll deductions be applied to an active Pledge?

    Posted 06-12-2025 07:20 AM

    Not sure what is behind the restriction at your institution-- maybe the shadow of an old annual fund push?  Here at Lenoir-Rhyne, we apply payroll deduction to open pledged, or wherever the donor directs.
    Susan Quinn




    Original Message


  • 3.  RE: Can recurring payroll deductions be applied to an active Pledge?

    Posted 06-12-2025 07:37 AM
    It is customary to create separate pledges for payroll deductions. Many CRMs have a unique pledge type to reflect that. Another issue with some payroll deductions is that their commitment can be open-ended. For example, at both Duke and NC State, I signed up for perpetual deductions-they remained in force until I left. Those arrangements are difficult to accommodate for pledges.

    There could be a couple of reasons your organization does not want to allow this. Clearly, and technically, it is possible to apply a payroll deduction to an active pledge. But then you have a new mechanical issue when that pledge is paid off, but the deduction is still occurring.

    There isn't anything "wrong" with what you want to do. But there might be reasons why doing so could create reporting and recording issues downstream. If a donor has an open pledge and has decided to pay exclusively through payroll deductions, it might be easier for all concerned to write that old pledge off and create a new one for PDs only.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 4.  RE: Can recurring payroll deductions be applied to an active Pledge?

    Posted 06-12-2025 08:33 AM

    John, in our system employees can set up a deduction with a stop date to match the pledge. We work closely with payroll to ensure the proper hi authorizations from  participating employees are in place place. Maybe another example of the small shop life-- lots of customization.





    Original Message


  • 5.  RE: Can recurring payroll deductions be applied to an active Pledge?

    Posted 06-12-2025 09:02 AM
    And that will work! However, I will note that many organizations will not mix and match payroll deductions and outright gifts to a single pledge. Often, that's due to reporting requirements. You cannot answer the question, "What's the total of all pledges paid by payroll deduction?" (as we reported monthly at Duke) if the pledges were not exclusively PDs.

    But again, I don't know of any accounting or legal reason that prohibits applying payroll deductions to a non-payroll deduction pledge.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


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