FundSvcs Community

Hi all,

A fundraiser is working with a company that has generously agreed to donate up to $1,000 worth of product over the course of the year. Each month, our organization will request products for teaching purposes. The company will provide an invoice reflecting the fair market value of the items, but with a $0 balance-meaning we receive the product as a donation at no cost.

I have a few questions about how to record this arrangement, as it functions like a gift-in-kind commitment. Specifically:

• Should this be recorded in Raiser's Edge as a $1,000 pledge?

• While I'm not an accountant, I'm wondering if this would also be treated as a pledge receivable on the finance side?

• If we do enter it as a pledge in RE, we could record each month's product value as a payment toward the pledge (marked as a gift-in-kind). On the other hand, if we don't record a pledge, we could just record each gift-in-kind as it is received monthly.

We're planning to issue an official gift acknowledgment letter at the end of the calendar year. We'll also track the value of each month's donations to ensure we don't exceed the $1,000 limit set by the donor company.

I'm curious-has anyone else encountered similar situations? What's the best and most efficient way to handle this from both an Advancement and Accounting standpoint?

Thanks in advance,

Hi all,

A fundraiser is working with a company that has generously agreed to donate up to $1,000 worth of product over the course of the year. Each month, our organization will request products for teaching purposes. The company will provide an invoice reflecting the fair market value of the items, but with a $0 balance-meaning we receive the product as a donation at no cost.

I have a few questions about how to record this arrangement, as it functions like a gift-in-kind commitment. Specifically:

• Should this be recorded in Raiser's Edge as a $1,000 pledge?

• While I'm not an accountant, I'm wondering if this would also be treated as a pledge receivable on the finance side?

• If we do enter it as a pledge in RE, we could record each month's product value as a payment toward the pledge (marked as a gift-in-kind). On the other hand, if we don't record a pledge, we could just record each gift-in-kind as it is received monthly.

We're planning to issue an official gift acknowledgment letter at the end of the calendar year. We'll also track the value of each month's donations to ensure we don't exceed the $1,000 limit set by the donor company.

I'm curious-has anyone else encountered similar situations? What's the best and most efficient way to handle this from both an Advancement and Accounting standpoint?

Thanks in advance,

Thanks, John, I was trying to search the CASE printed book for that definition of corporate partnerships, but I don't see one.  Is there anywhere you can point to me to I can reference it when trying to explain this to our fundraiser, to make sure  this  might be a gift or not.

Appreciate the help.

Hi all,

A fundraiser is working with a company that has generously agreed to donate up to $1,000 worth of product over the course of the year. Each month, our organization will request products for teaching purposes. The company will provide an invoice reflecting the fair market value of the items, but with a $0 balance-meaning we receive the product as a donation at no cost.

I have a few questions about how to record this arrangement, as it functions like a gift-in-kind commitment. Specifically:

• Should this be recorded in Raiser's Edge as a $1,000 pledge?

• While I'm not an accountant, I'm wondering if this would also be treated as a pledge receivable on the finance side?

• If we do enter it as a pledge in RE, we could record each month's product value as a payment toward the pledge (marked as a gift-in-kind). On the other hand, if we don't record a pledge, we could just record each gift-in-kind as it is received monthly.

We're planning to issue an official gift acknowledgment letter at the end of the calendar year. We'll also track the value of each month's donations to ensure we don't exceed the $1,000 limit set by the donor company.

I'm curious-has anyone else encountered similar situations? What's the best and most efficient way to handle this from both an Advancement and Accounting standpoint?

Thanks in advance,