FundSvcs Community

Good afternoon colleagues!

I'm seeking best-practice guidance on how others handle soft/recognition credit in a proceeds-based fundraising scenario.

Scenario:

• An affiliated organization (our Alumni Association) plans to sell a branded item (a Lego Duke Dog) to constituents.

• Purchasers understand that a stated portion of the proceeds will ultimately be donated to our Foundation to support a fund (TBD).

• The Alumni Association will:

  • Receive all payments from individuals

  • Make a single contribution of proceeds to the Foundation

  • Retain legal donor status and receive tax acknowledgement

• The Foundation will not receive individual payments or gift intent directly from purchasers.

• This differs from traditional quid-pro-quo items (e.g., calendars/posters) where the charitable portion is explicitly defined and receipted as a gift from the purchaser.

Question:
In this type of arrangement-where funds arrive as proceeds from sales and the affiliated organization is the legal donor-do you:

• Provide soft or recognition credit to individual purchasers for a prorated amount of the proceeds?

• If yes, what documentation or criteria do you require (e.g., purchaser acknowledgment language, defined charitable portion, receipting responsibility, donor intent)?

• If no, do you treat recognition exclusively at the organizational level given the absence of a direct charitable gift from the individual?

Thank you in advance for sharing your practices and rationale.

Good afternoon colleagues!

I'm seeking best-practice guidance on how others handle soft/recognition credit in a proceeds-based fundraising scenario.

Scenario:

• An affiliated organization (our Alumni Association) plans to sell a branded item (a Lego Duke Dog) to constituents.

• Purchasers understand that a stated portion of the proceeds will ultimately be donated to our Foundation to support a fund (TBD).

• The Alumni Association will:

  • Receive all payments from individuals

  • Make a single contribution of proceeds to the Foundation

  • Retain legal donor status and receive tax acknowledgement

• The Foundation will not receive individual payments or gift intent directly from purchasers.

• This differs from traditional quid-pro-quo items (e.g., calendars/posters) where the charitable portion is explicitly defined and receipted as a gift from the purchaser.

Question:
In this type of arrangement-where funds arrive as proceeds from sales and the affiliated organization is the legal donor-do you:

• Provide soft or recognition credit to individual purchasers for a prorated amount of the proceeds?

• If yes, what documentation or criteria do you require (e.g., purchaser acknowledgment language, defined charitable portion, receipting responsibility, donor intent)?

• If no, do you treat recognition exclusively at the organizational level given the absence of a direct charitable gift from the individual?

Thank you in advance for sharing your practices and rationale.

Good afternoon colleagues!

I'm seeking best-practice guidance on how others handle soft/recognition credit in a proceeds-based fundraising scenario.

Scenario:

• An affiliated organization (our Alumni Association) plans to sell a branded item (a Lego Duke Dog) to constituents.

• Purchasers understand that a stated portion of the proceeds will ultimately be donated to our Foundation to support a fund (TBD).

• The Alumni Association will:

  • Receive all payments from individuals

  • Make a single contribution of proceeds to the Foundation

  • Retain legal donor status and receive tax acknowledgement

• The Foundation will not receive individual payments or gift intent directly from purchasers.

• This differs from traditional quid-pro-quo items (e.g., calendars/posters) where the charitable portion is explicitly defined and receipted as a gift from the purchaser.

Question:
In this type of arrangement-where funds arrive as proceeds from sales and the affiliated organization is the legal donor-do you:

• Provide soft or recognition credit to individual purchasers for a prorated amount of the proceeds?

• If yes, what documentation or criteria do you require (e.g., purchaser acknowledgment language, defined charitable portion, receipting responsibility, donor intent)?

• If no, do you treat recognition exclusively at the organizational level given the absence of a direct charitable gift from the individual?

Thank you in advance for sharing your practices and rationale.

John - even if the Alumni Association is a separate 501(c)3?

Good afternoon colleagues!

I'm seeking best-practice guidance on how others handle soft/recognition credit in a proceeds-based fundraising scenario.

Scenario:

• An affiliated organization (our Alumni Association) plans to sell a branded item (a Lego Duke Dog) to constituents.

• Purchasers understand that a stated portion of the proceeds will ultimately be donated to our Foundation to support a fund (TBD).

• The Alumni Association will:

  • Receive all payments from individuals

  • Make a single contribution of proceeds to the Foundation

  • Retain legal donor status and receive tax acknowledgement

• The Foundation will not receive individual payments or gift intent directly from purchasers.

• This differs from traditional quid-pro-quo items (e.g., calendars/posters) where the charitable portion is explicitly defined and receipted as a gift from the purchaser.

Question:
In this type of arrangement-where funds arrive as proceeds from sales and the affiliated organization is the legal donor-do you:

• Provide soft or recognition credit to individual purchasers for a prorated amount of the proceeds?

• If yes, what documentation or criteria do you require (e.g., purchaser acknowledgment language, defined charitable portion, receipting responsibility, donor intent)?

• If no, do you treat recognition exclusively at the organizational level given the absence of a direct charitable gift from the individual?

Thank you in advance for sharing your practices and rationale.

John - even if the Alumni Association is a separate 501(c)3?

Good afternoon colleagues!

I'm seeking best-practice guidance on how others handle soft/recognition credit in a proceeds-based fundraising scenario.

Scenario:

• An affiliated organization (our Alumni Association) plans to sell a branded item (a Lego Duke Dog) to constituents.

• Purchasers understand that a stated portion of the proceeds will ultimately be donated to our Foundation to support a fund (TBD).

• The Alumni Association will:

  • Receive all payments from individuals

  • Make a single contribution of proceeds to the Foundation

  • Retain legal donor status and receive tax acknowledgement

• The Foundation will not receive individual payments or gift intent directly from purchasers.

• This differs from traditional quid-pro-quo items (e.g., calendars/posters) where the charitable portion is explicitly defined and receipted as a gift from the purchaser.

Question:
In this type of arrangement-where funds arrive as proceeds from sales and the affiliated organization is the legal donor-do you:

• Provide soft or recognition credit to individual purchasers for a prorated amount of the proceeds?

• If yes, what documentation or criteria do you require (e.g., purchaser acknowledgment language, defined charitable portion, receipting responsibility, donor intent)?

• If no, do you treat recognition exclusively at the organizational level given the absence of a direct charitable gift from the individual?

Thank you in advance for sharing your practices and rationale.

Here's the statement from CASE on page 46. Please note that this isn't a change. Similar language goes back several editions - maybe to the 1980s, although my books are in the US and I am not so I cannot check!

 

John H. Taylor, Principal

John H. Taylor Consulting, LLC

2604 Sevier Street

Durham, NC     27705

 

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

 

Serving the Advancement Community Since 1987

Original Message:
Sent: 1/21/2026 1:13:00 PM
From: John Taylor
Subject: RE: Soft/Recognition Credit Best Practice Question

Original Message:
Sent: 1/21/2026 1:07:00 PM
From: Gretchen Armentrout
Subject: RE: Soft/Recognition Credit Best Practice Question

John - even if the Alumni Association is a separate 501(c)3?

------------------------------
Gretchen Armentrout
James Madison University
housergh@jmu.edu

Original Message:
Sent: 01-21-2026 11:58 AM
From: John Taylor
Subject: Soft/Recognition Credit Best Practice Question

Original Message:
Sent: 1/21/2026 12:55:00 PM
From: Isaac Shalev
Subject: RE: Soft/Recognition Credit Best Practice Question

Original Message:
Sent: 1/21/2026 12:19:00 PM
From: Gretchen Armentrout
Subject: Soft/Recognition Credit Best Practice Question

Good afternoon colleagues!

I'm seeking best-practice guidance on how others handle soft/recognition credit in a proceeds-based fundraising scenario.

Scenario:

• An affiliated organization (our Alumni Association) plans to sell a branded item (a Lego Duke Dog) to constituents.

• Purchasers understand that a stated portion of the proceeds will ultimately be donated to our Foundation to support a fund (TBD).

• The Alumni Association will:

  • Receive all payments from individuals

  • Make a single contribution of proceeds to the Foundation

  • Retain legal donor status and receive tax acknowledgement

• The Foundation will not receive individual payments or gift intent directly from purchasers.

• This differs from traditional quid-pro-quo items (e.g., calendars/posters) where the charitable portion is explicitly defined and receipted as a gift from the purchaser.

Question:
In this type of arrangement-where funds arrive as proceeds from sales and the affiliated organization is the legal donor-do you:

• Provide soft or recognition credit to individual purchasers for a prorated amount of the proceeds?

• If yes, what documentation or criteria do you require (e.g., purchaser acknowledgment language, defined charitable portion, receipting responsibility, donor intent)?

• If no, do you treat recognition exclusively at the organizational level given the absence of a direct charitable gift from the individual?

Thank you in advance for sharing your practices and rationale.

------------------------------
Gretchen Armentrout
Director, Gifts & Records
James Madison University
housergh@jmu.edu
------------------------------