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  • 1.  Soft Crediting Spouses

    Posted 10-10-2024 12:34 PM

    I have a question about soft crediting spouses.  In our database, we have separate records for each spouse which are joined by a "connection".  When we receive a gift from the couple, I record a hard credit for the entire amount on one record and soft credit the spouse for the same amount.  But I have a new VP who tells me that I should be splitting the gift – posting half the amount as a hard credit on each spouse's record.  This doesn't seem correct to me because then each spouse only looks like they gave half of what they actually gave.  Am I wrong?



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    Dawn Kramrech
    The Children's Institute of Pittsburgh
    dawn.kramrech@amazingkids.org
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  • 2.  RE: Soft Crediting Spouses

    Posted 10-10-2024 12:54 PM
    To some extent my advice here depends on the CRM and its capabilities, but generally, I dislike split gifts. They make reporting more technically complex, and they make it more difficult to truly track engagement. It's pretty typical in many settings, including higher ed, to have a non-constituent spouse. Splitting spousal gifts obscures this issue. It also makes for a mess when spouses divorce!

    But you have to evaluate your approach holistically, thinking about soft credits and splitting together. Some systems have more robust soft crediting options and types that enable you to distinguish between an indirect gift like a DAF, a spousal credit, a donation-driver credit, recognition credit,  etc. Others (looking at you, RE) have one kind of soft credit, forcing you into other approaches for tracking these different types of credits. Don't make a change lightly, think through all the implications on your reporting outputs.  

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

    Schedule a 30-minute consultation now:






  • 3.  RE: Soft Crediting Spouses

    Posted 10-10-2024 01:02 PM
    Splitting gifts is an awful practice. It destroys data integrity. Your current approach is the best practice - I promise you! Record the gift in its entirety on the legal donor (check signer) record and give the spouse soft credit!

    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







  • 4.  RE: Soft Crediting Spouses

    Posted 10-10-2024 01:24 PM
    Edited by Alan Hejnal 10-10-2024 01:28 PM

    I would say that there is no one "right" way to do this.  The important thing is to have a consistent approach that meets all the requirements for reporting and recording.  That in turn will need to take into account your system's capabilities/design and your data practices. 

     

    Many people will advocate your practice, perhaps advocating that the hard credit be assigned to the spouse signing the check or authorizing the credit card charge.  You would need to decide what happens when you receive a check from someone who is not in the system but whose spouse is in the system (further complicated, for educational institutions, when one spouse is an alum and one is not).  In this approach, you'd create a record for the spouse and connect it to the person in the system.

     

    That doesn't really solve the "each spouse only looks like they gave half of what they gave" problem, because one spouse may give one time, and the other the next time, and then in total "each spouse only looks like they gave half of what they gave."  So your reporting needs to be sophisticated enough to  give a full picture of giving by the couple.

     

    In general, the overwhelming majority of gifts from couples are made from joint assets, so neither recording the entire gift on one spouse record or splitting it between the spouse records is meaningfully more "correct". 

     

    I'm in the minority, but I've always liked the splitting method.  If you received a gift from one spouse (in the absence of any information that this is intended as a gift from only that one spouse, which requires a different analysis), I would split the hard credit and give each spouse full soft credit. So if the gift was $100, I'd give each spouse $50 hard credit and $100 soft credit.  That way, when you're working on recognition issues for an individual, you just look a the soft credit, and don't have to add $50 hard credit and $50 soft credit that one might add using a different approach.  It has worked extremely well, whatever somewhat strident rhetoric you might on occasion hear about it being an awful practice or some such.

     

    None of this is perfect.  You might have a whole string of gifts from someone with no idea whether they're married or not, then get another gift initiated by a spouse (and typically without any idea of how long they've been a spouse).  Neither giving all the hard credit to the spouse who initiated the particular gift nor splitting the hard credit is going to solve how you report that giving history. 

     

    Receipting, in my experience, often smooths these issues by receipting the couple jointly, regardless of whether you split the hard credit or recorded it against spouse A or recorded it against spouse B (again, in the absence of specific information that the gift is to be treated as coming from one spouse).

     

    Besides receipting, and besides reporting per se, whatever approach you choose, you will need to train the people looking at the data in your system.

     

    Since it seems like your history is giving all the hard credit to one spouse, changing to a different policy now is likely to just confuse matters, without any meaningful gain, in my opinion, my own druthers notwithstanding.  You would, I would opine, want to make sure that your system is equitable, which presumably it is (e.g. assigning the hard credit to the spouse who initiated the gift, not just assigning it to the husband in a "traditional" couple).

     

    Life would (perhaps?) be easier if there were one "right" approach, and if we had complete data on donors' marital statuses and their intentions.  But that's not my experience.

     

    What might be helpful is to sit down and decide collectively how you want giving by couples to appear in different contexts: donor histories, annual totals, giving trends, etc.  You certainly wouldn't want to solicit someone as not having given this year because their spouse wrote this year's check!  And then, once you decide how you want the couple to be reported, you figure out how to accomplish that within the capabilities of your system and your reporting practices.

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

    Alan

     

    Alan S. Hejnal (he/him)

    Data Quality Manager

     

    SNAGHTML5cbfa34

     






  • 5.  RE: Soft Crediting Spouses

    Posted 10-10-2024 01:27 PM

    In paragraph 5, I of course meant "I would split the hard credit and give each spouse full soft credit," as described in the example.

     

    Thanks,

    Alan

     

    Alan S. Hejnal (he/him)

    Data Quality Manager

     

    SNAGHTML5cbfa34

     

    Office of Advancement

    600 Maryland Ave SW Ste 600E

    PO Box 37012, MRC 527

    Washington, DC 20013-7012

    (202-633-8754 *HejnalA@si.edu

     

     






  • 6.  RE: Soft Crediting Spouses

    Posted 10-10-2024 03:37 PM
    Hey there, Dawn - 

    It seems like you've hit upon a question that would benefit from developing some sort of industry standard (maybe best practice?) for how to handle spouse/household gifts. 

    For starters, I'll confess that I tend to agree with John's POV about the nightmares around trying to do split gifts. And, if you think about it, unless a checking account requires that both spouses sign a check then there really isn't any great reason not to hard credit whichever spouse signs the check with soft credit to the other spouse. 

    Honestly, IMHO, it sounds as though your VP has some good - albeit perhaps naive? - intentions that aren't always as good a practice in reality as they might sound in prospective recognition practices. Perhaps some simple demonstrations about how your practices support the standard reporting strategies already supported at the organization (and likely based on what your database tool can do) would be helpful?

    Good luck and best regards - Amy

    amy.j.phillips@hotmail.com
    Founding, Charter and Active member of AASP!





  • 7.  RE: Soft Crediting Spouses

    Posted 10-10-2024 03:58 PM
    Actually, such a "best practices" document already exists. It is in the newly renamed aasp Knowledge Base: Knowledge Base - aasp (connectedcommunity.org)

    After logging in with your aasp credentials, you will find this document within the Records Management category. The title is "Applying Recognition Soft Credits." I updated the document two years ago, but the document has been around since 2008!

    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







  • 8.  RE: Soft Crediting Spouses

    Posted 10-11-2024 08:30 AM

    My thanks to everyone who replied.  Your thoughts have been very helpful.  In particular, thanks for pointing me to the Best Practices document in the Knowledge Base.  Every time my VP and I disagree on a given point, she cites her opinion as being the "best practice" - now I have something concrete to show her.  Thanks again!



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    Dawn Kramrech
    The Children's Institute of Pittsburgh
    dawn.kramrech@amazingkids.org
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