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  • 1.  Money received before gift agreement/pledge forms signed.

    Posted 9 days ago

    Currently, if we received money for a pledge/gift agreement before we have a signed document, we will decrease the pledge commitment entered into the CRM by the amount of said payment.  If we have a document from the donor with a date before the payment, agreeing the pledge, even though we don't have a signed formal agreement then we will build the pledge for the full amount.  The reducing of these pledges when we get the payment first, results in manual work for pledge reminders (and can cause confusion with the donor).  I would be interested in knowing how others handle this and if there is a guideline in writing or something from the IRS that I missing that states clearly how this should be managed. We would prefer to build the pledge for the full amount to stop the manual work and then move the payment we received early and posted as an outright gift, to a pledge payment. Any input would be appreciated!



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    Dana Neal, Director
    Purdue For Life Foundation
    DJNeal@purdueforlife.org
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  • 2.  RE: Money received before gift agreement/pledge forms signed.

    Posted 9 days ago
    If you do not have an executed pledge agreement, I would not record a pledge. I'd enter the money as an outright gift for the time being. When the agreement is received, record it and then adjust the previous gift and apply it as a pledge payment. Ideally, the pledge document will reference the previously provided donation.

    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






  • 3.  RE: Money received before gift agreement/pledge forms signed.

    Posted 9 days ago

    Thank you!  So there is no legal issue with applying a gift that is dated before the pledge to that pledge? 



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    Dana Neal
    Purdue For Life Foundation
    DJNeal@purdueforlife.org
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  • 4.  RE: Money received before gift agreement/pledge forms signed.

    Posted 9 days ago
    It is done all the time! But it is cleanest when the previous gift is referenced in the pledge document.

    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







  • 5.  RE: Money received before gift agreement/pledge forms signed.

    Posted 9 days ago

    Greatly appreciate the input!!  



    ------------------------------
    Dana Neal
    Purdue For Life Foundation
    DJNeal@purdueforlife.org
    ------------------------------



  • 6.  RE: Money received before gift agreement/pledge forms signed.

    Posted 9 days ago
    I should add that I have encountered the occasional business office that hasn't been thrilled about doing this when the gift and the pledge are made in different fiscal years. But it is still doable, and my institutions have not had an issue.

    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