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  • 1.  Pledge Booking-Best Practices

    Posted 11-01-2024 01:00 PM

    Hello, can anyone share their policy and/or best practices with regards to booking future pledges (not planned gifts)?  More specifically, booking pledges with first or only installment date extending over one year or more?  We go through the process of creating new projects/funds for a gift that isn't anticipated to be realized for well over a year or more and just curious if others have same process.

    Thank you!



    ------------------------------
    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
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  • 2.  RE: Pledge Booking-Best Practices

    Posted 11-01-2024 01:27 PM
    "Booking" and recording can be two different things.

    There's no reason to create multiple projects/funds/accounts for pledges to be paid over multiple years. The standard is to create (or use) a single fund, provided the pledge's purpose will not change over time. If that's the plan, you will likely record multiple pledges - one for each purpose.

    You record the entirety of the pledge to that one fund in your CRM. You identify the anticipated payments toward that pledge by recording payment schedules.

    Typically, the Finance side of the house will "book" the entire pledge amount toward that fund as a receivable. However, I have occasionally seen instances when Finance will prorate pledges values on the GL if the anticipated payments exceed five years.

    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


  • 3.  RE: Pledge Booking-Best Practices

    Posted 11-01-2024 01:40 PM
    PS

    Dena, it may be that Finance wants to place anticipated future payments in different buckets. This can still be accomplished by using a single GL account. You can create the pledge to that fund but also feed them the unique payment schedule data and the single account number. They can then establish different projects within that account to "book" different anticipated amounts by year.

    Remember that you are NOT running a subledger for Finance. Your CRM is more of an information reporting tool.

    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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