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One-Size-Fits-All Acknowledgement

  • 1.  One-Size-Fits-All Acknowledgement

    Posted 01-27-2023 10:23 AM
    Does anyone have an example of a gift acknowledgment that can be used for all gift types? Currently we use various acknowledgements based on gift type, however, new leadership would like to move towards one letter for everything, no matter the gift type. The fine print clause at the bottom would need to reflect multiple types of gifts. All letters to be sent under the signature of the university president and the relationship manager will send a personalized thank you note. Does such an animal exist in anyone's world?

    ------------------------------
    Karen Dreessen
    Advancement Services Manager
    Morningside University
    dreessen@morningside.edu

    ------------------------------


  • 2.  RE: One-Size-Fits-All Acknowledgement

    Posted 01-27-2023 01:27 PM
    I've never encountered such a thing, and I have no idea how it would work. Different gift types have different required bits of information that live in different fields in the database. Worse, some gifts, e.g. a GIK, need to exclude a field that would normally be included for most other gifts. It also seems like you wouldn't be able to identify the fund the donor gave to in your letter, which seems like both bad stewardship and bad usability,

    Receipt and acknowledgement generation is a pain-point for many. ReceipterPro for Raiser's Edge is a great product, and I've seen some shops use document automation software, or even custom SQL coding, to solve for this. I'm not sure how you can sidestep the whole problem in the way your leadership seems to be hoping. 



    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:




    Original Message


  • 3.  RE: One-Size-Fits-All Acknowledgement

    Posted 01-30-2023 08:30 AM
    Hi Karen,

    We have a very limited set of acknowledgement letters. There are a few versions based on the gift size/signatory. I'm not sure we could ever get down to just one letter and receipt.

    What we've done to manage the issues Isaac mentioned about needing different language for different letters is generate the necessary text in the report, which is then merged into appropriate fields in the letters. The report query checks for things like whether the contribution was made in someone's memory or any other special situations. In some cases the merge field is as much as a whole paragraph.

    Lianna

    ------------------------------
    Lianna Bodzin
    Assistant Director of Advancement Services
    Colorado School of Mines
    lbodzin@mines.edu
    ------------------------------

    Original Message


  • 4.  RE: One-Size-Fits-All Acknowledgement

    Posted 01-30-2023 02:37 PM
    Hi Karen,

    Similar at our institution. During donation processing, there is a step where we are required to select which acknowledgment type the donor is to receive (including an option for no acknowledgment letter). Each acknowledgment type is included in an MS Word template that uses logic and merge field codes to generate the pertinent letter. This letter also takes advantage of addressing logic rules built into our fundraising system. Overall it works pretty well, but in some circumstances we have to customize a letter. Let me know if you have further questions about this process--it can sometimes be difficult to explain/understand without seeing it.

    Ryan

    ------------------------------
    Ryan Elliott
    Associate Vice President
    Webster University
    relliott@WEBSTER.EDU
    ------------------------------

    Original Message


  • 5.  RE: One-Size-Fits-All Acknowledgement

    Posted 01-31-2023 08:59 AM
    Edited by Dariel Dixon 01-31-2023 01:01 PM
    What I think your leadership is talking about is a document with a variety of conditional merge fields.  It can be done, but I don't know how effective of a letter you will have.  Like others mentioned, it involves inserting certain verbiage based upon the various gift types.  But, I don't think they way that is being described is an effective manner of acknowledgement.  You would need more than a footer or fine print to account for the types of changes to the letter.  

    I'm not sure what problem having one letter would solve, but I could foresee a lot of potential problems with this approach.

    ------------------------------
    Dariel Dixon
    Asst. Director of Database and Gift Administraion
    Chautauqua Institution
    ddixon@chq.org
    ------------------------------

    Original Message


  • 6.  RE: One-Size-Fits-All Acknowledgement

    Posted 01-31-2023 09:30 AM
    You can create acknowledgements with conditional merge fields. There are two general approaches: a single template with all the conditional logic in it to create every type of acknowledgement, or a group of templates for different gift types. 

    The former has the advantage that universal changes are easy to make, as there is only one place where updates need to be applied. The disadvantages, though, are substantial. The template is usually pretty complicated, and it takes IT's help or advanced skills to edit it. It is also very prone to becoming a big pile of code spaghetti, since there are so many conditionals and variables. Version control and commented code is super important, because otherwise, if there's a mistake it can be very painful to debug, and your whole operation is on pause until it's fixed. Organizations that use this approach with success are typically using document automation software to manage this and provide better user interfaces and so on. 

    More often, we see organizations with a small stable of templates that are designed to each cover a range of similar gifts. These are usually simple enough for Advancement staff to manage themselves. The biggest disadvantage is that changes must be propagated into each template separately. Without good governance, templates can also begin to sprawl.


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message


  • 7.  RE: One-Size-Fits-All Acknowledgement

    Posted 02-01-2023 09:33 AM
    You certainly can accomplish this with one template and multiple variables, and some complex programming.  I am wondering if your leadership is imagining something very different though.  

    Perhaps they are looking for a generic acknowledgement letter that emphasizes the importance of the gift, the mission of the organization and the appreciation for their supporters. 
    You already mentioned there would be a tax receipt. In addition, there would be a hand-written letter from the DO/Department which would be more specific.  
    This could meet your needs in all but the very highest level gifts.  

    I don't have an example, though an experienced acknowledgement writer could develop some drafts for review.  First step would be to clarify the expectations a little more specifically.  Are they looking for a complex, specific mail merge type letter, or a scenario similar to the one I mention above (or some hybrid). 

    Hope this helps!

    Terry Callaghan
    Senior Director, Management Consulting
    Zuri Group 

    Proud aasp Executive Board member



    Original Message


  • 8.  RE: One-Size-Fits-All Acknowledgement

    Posted 03-09-2023 03:55 PM
    Good afternoon,

    I'm circling back on the One-Size-Fits-All acknowledgement. As suggested, further clarification was obtained. Below is the directive I was given.

    The acknowledgement will have a generic message emphasizing the impact of the gift, university mission and appreciation for support. This will be used for all gift types except estate gifts.

    The gift information provided will be the  DATE   DESIGNATION   AMOUNT (Even for stock)  DETAILS (Shares of stock (if any), donor-advised fund name (if any), IRA custodian name (if any)).

    The footer for all acknowledgements will read: "This letter serves as a receipt for a gift given or directed to MU. The university is recognized as tax-exempt by the IRS under Section 501(c)(3). No goods or services were provided in exchange for this donation."

    Any concerns here? 

    Karen Dreessen
    Advancement Services Manager
    Morningside University






    Original Message


  • 9.  RE: One-Size-Fits-All Acknowledgement

    Posted 03-09-2023 04:14 PM
    What about non-stock GIKs? Pledges? 

    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message


  • 10.  RE: One-Size-Fits-All Acknowledgement

    Posted 03-09-2023 04:28 PM

    Sorry, non-stock GIKs will receive a separate letter to include the donor's provided value. Pledge payments will receive the letter outlined previously.

     

    Karen Dreessen

    Advancement Services Manager

    Morningside University

    dreessen@morningside.edu

     




    Original Message


  • 11.  RE: One-Size-Fits-All Acknowledgement

    Posted 03-10-2023 08:58 AM

    Hi Karen,

    Assuming the issue you're asking about is the message of the letter vs the details, it seems like a standard universal message thanking a donor for a gift and incorporating some brand messaging would not be that difficult. If that is the case I think that is what has some scratching their head thinking there must be more to the story. Most modern CRM's allow you to create customized messages based on gift type where you set it up then let the system do the work. If you already have that working for you, why swap that out for something more generic that doesn't eliminate work?

     

    Generally speaking, a personalized hand written note on a letter will draw the primary focus of the reader so there is a school of thought that de-emphasizes the letter text and emphasizes the manual personalization. I'm in favor of that whenever feasible but that doesn't preclude still using built in customization by gift type. If the process of customizing letters in your office is manual and you don't have a means to automate it, then the idea of saving time by going with one letter and instead using that time to add personal notes may, indeed, be the best option.

     

    When I served in a Campaign Director role and spent quite a bit of time with the institutions top donors, one thing I gained heightened awareness of is that often they compare operations of institutions courting them and even know the lingo of advancement. It heightened my awareness of how important operational excellence is to the overall brand of your fundraising operations. Major donors want to give to quality so you want to make sure that any aspect of your operation that is external facing reflects that. For gift processing and receipting, that means timely acknowledgments and good messaging. I think those that are requesting this of you should keep that as a big consideration.

     

    Best wishes,

     

    John Smilde

    Director of Gifts and Records Administration

    Advancement and Alumni Relations

    George Mason University

    4400 University Drive, MSN 1A3

    Fairfax, VA 22030

    703.993.8680

    jsmilde@gmu.edu

     

    This electronic message contains confidential information which is, in whole or in part,

    subject to exclusion from disclosure under the Freedom of Information Act pursuant to

    §2.2-3705.4.7. of the Code of Virginia.

     

     

     




    Original Message


  • 12.  RE: One-Size-Fits-All Acknowledgement

    Posted 03-10-2023 10:28 AM
    Hi,

    When RENXT turned off access to Mail Merging within RE last year and we had to all switch to mail merge as a CSV export at my previous job, I did learn the tips of conditional mail merging within a Word Document (there are helpful youtube videos Blackbaud created on this).

    With conditional mail merging, it works best to have the body of the letter exactly the same as you discuss with the same signer or drop-sig, and then you have "conditions" based on some field or fields which would hide/show information in the footer below the signature line.

    For instance, at my last job we had one letter for tax-deductible gifts and one letter for DAF donors. The conditional field we used was the letter code within RE. When it was the regular letter, the tax clause would appear in the mail merge. If it was the DAF letter, the tax clause about the tax-deductible portion of the gift would disappear.  Gift date and amount would still be present for both letters.

    If you or someone on your staff has the time/ability to practice with this and figure out the conditions you want to include/exclude, you can easily have one letter that will merge and properly have all the content it should or should not based on the gift conditions.

    I will add that creating the conditional mail merge and setting it up was something I was very proud of lol, as it did take some time/effort, but in the end, was well worth it and enabled us to stick with one mail merge process (and not have to run 2-4 different mail merges daily).

    Good luck, 

    Tara Zoltek
    Director of Advancement Services
    Direct 484-417-2728
    The Haverford School
    450 Lancaster Avenue
    Haverford, PA 19041



    Original Message


  • 13.  RE: One-Size-Fits-All Acknowledgement

    Posted 03-10-2023 11:26 AM

    Unfortunately, we do not have a modern CRM, however we are in the process of choosing a new ERP.  For now, the process is manual, which I am ok with as long as we are meeting IRS guidelines. 

     

    The letter itself will be standard with an electronic signature.  Donors with an assigned relationship manager will receive a handwritten note.

     

    My concern is sending this same letter as a thank you to someone who suggested a gift from a DAF. They are not the donor, however the footer indicates "This letter serves as a receipt for a gift given or directed to MU...." They should not be receiving a receipt.  Is this OK because of the word "directed?"

     

    The letter will not include any QCD language such as "Your gift from your Individual Retirement Account was received directly from your plan trustee/administrator and that it is your intention for all of your gift to qualify as a qualified charitable distribution under section 408(d)(8) of the Internal Revenue Code.  Accordingly, we warrant to you that Morningside University is qualified under section 170(b)(1)(A) of the Internal Revenue Code and that your gift was not transferred to either a Section 4966(d)(2) donor advised fund or a supporting organization as described in section 509(a)(3). "  From my research on the site, this information does not appear to be legally required, however good stewardship to include.

     

    The letter will include an amount from stock but will not include the manner in which that amount was reached.

     

    I just want to make sure we meet all IRS legal requirements with this one letter and one footer - no matter the gift type, with the exception of estate gifts and non-stock GIKs.

     

    Karen Dreessen

    Advancement Services Manager

    Morningside University

    dreessen@morningside.edu

     




    Original Message


  • 14.  RE: One-Size-Fits-All Acknowledgement

    Posted 03-10-2023 12:27 PM

    Yeah, you should not send a letter with tax language to the person who referred a DAF gift to you. You're technically not obligated to send them anything but, if since it's generally wise to send something, it should be a donor relations type letter with no tax language. Generally the message should say something like "thank you for recommending..."

     

    I don't think the IRS, the DAF, or the donor would be happy to know you are sending out tax language to referrers (or even thanking them like it's a direct gift). It is something you need to hold the line on.

     

    Thanks,

     

    John Smilde

    Director of Gifts and Records Administration

    Advancement and Alumni Relations

    George Mason University

    4400 University Drive, MSN 1A3

    Fairfax, VA 22030

    703.993.8680

    jsmilde@gmu.edu

     

    This electronic message contains confidential information which is, in whole or in part,

    subject to exclusion from disclosure under the Freedom of Information Act pursuant to

    §2.2-3705.4.7. of the Code of Virginia.

     

     

     




    Original Message


  • 15.  RE: One-Size-Fits-All Acknowledgement

    Posted 03-10-2023 02:50 PM

    I would agree with you John.  I'm having a very difficult time convincing our leadership of this, which is why I'm reaching out to the community.

     

    Thank you all for your feedback!

     




    Original Message


  • 16.  RE: One-Size-Fits-All Acknowledgement

    Posted 03-13-2023 10:54 AM
    Karen, there may be a way, with careful language and disclaimers, to produce a uniform acknowledgement that complies with the laws and regulations. But just a little bit of conditional coding in creating your acknowledgments can produce a much cleaner result, and one that would be better for donor stewardship. Is leadership simply not aware of the possibility of this approach? Sometimes we leap to describing solutions instead of explaining our problems - maybe that's what's happening here? I feel your frustrations!


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message


  • 17.  RE: One-Size-Fits-All Acknowledgement

    Posted 03-15-2023 02:20 PM

    Hi Karen,

    If you just finished attending John Taylor's annual AASP IRS Tax Update, then you saw this as well but the presentation contained a slide that had information relevant to your situation. The presentation sited IRS Code 6700 and 6701 about fines for providing misleading info regarding gift values. In the case of what you are being asked to consider - sending receipt with tax language to donors who have not made a gift to you - would definitely be considered a misstatement of gift value. The scenario I'm referring to is sending a receipt to donors who recommended a gift to you via a foundation or donor advised fund to whom they actually made the gift.

     

    https://www.irs.gov/pub/irs-tege/eotopicm99.pdf

     

    It would be worth sharing this with those who are considering this. An important point was that, ignorance of the law, is not considered an excuse.

     

    Best wishes with navigating your situation.

     

    John Smilde

    Director of Gifts and Records Administration

    Advancement and Alumni Relations

    George Mason University

    4400 University Drive, MSN 1A3

    Fairfax, VA 22030

    703.993.8680

    jsmilde@gmu.edu

     

    This electronic message contains confidential information which is, in whole or in part,

    subject to exclusion from disclosure under the Freedom of Information Act pursuant to

    §2.2-3705.4.7. of the Code of Virginia.

     

     

     




    Original Message


  • 18.  RE: One-Size-Fits-All Acknowledgement

    Posted 03-15-2023 02:33 PM

    Hi John,

     

    Thank you so much for thinking of me and sending the attachment.  Unfortunately, we are in the midst of a 36-hour giving marathon and I was unable to attend John's IRS Update.

     

    I will most definitely share this and the point that ignorance of the law, is not considered an excuse.

     

    THANK YOU!!

     

    Karen

     




    Original Message


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