Hi Rebecca,
I think it's possible both you and your CFO are right but may just be referencing different points of usage of the quid info. It sounds like you are looking at it from the perspective of issuing tax receipts and are absolutely correct that the Quid should be reflected at the point you are issuing receipts.
From your CFO's standpoint, I think it depends on what is meant my the word "recognize." If that refers to what should be recognized in fundraising reporting I would agree with your CFO that the net recognized amount should be reduced by the quid amount and the quid should be recorded in the pledge when it is set up. If you're CFO is referring to how it should be recognized as a receivable on the balance sheet, then they may be trying to make their life easier by not having to record a pledge receivable for the full amount and a corresponding liability for what your org has promised to deliver towards costs.
If the latter is the case, I agree that you have a valid disagreement. Since you'll be managing the entire pledge, including quid, you should record the full amount, even if that creates a reconciling item or causes a little extra work for the finance folks.
That's my view.
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
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