Write Offs In Mass?

Stacie Dennis

Due to how data entry was done in the past, we have several "pledges" in our database that are unpaid. Is there a way to close/write-off several pledges at once? Or close all pledges from the previous fiscal year?

JoAnn Strommen

It is possible if you have the user rights to globally write off pledges.  See KB BB55270.  Personally I'd be hesitant to do it globally unless I was very sure they were all to be written off. 



If the list is not really large what I do at year end it make a query of the gifts that I need to write off and just start with record #1 in query, write it off, save, and click next record.  Makes it at least a little easier.



If it's due to improper data entry and you don't want large #/% of gift write offs you may want to consider gift adjustments instead.  For some orgs those #s matter.

Stacie Dennis

JoAnn Strommen:

It is possible if you have the user rights to globally write off pledges.  See KB BB55270.  Personally I'd be hesitant to do it globally unless I was very sure they were all to be written off. 



If the list is not really large what I do at year end it make a query of the gifts that I need to write off and just start with record #1 in query, write it off, save, and click next record.  Makes it at least a little easier.



If it's due to improper data entry and you don't want large #/% of gift write offs you may want to consider gift adjustments instead.  For some orgs those #s matter.

So basically the history with these are that gifts were entered from our Walk program in as pledges until the checks were received in the mail. But since there wasn't a formal structure set in place, upon arrival, some checks would be entered as a paid pledge, but sometimes they would be entered as an outright gift.



Then (to add an additional layer of crazy) there were true pledges that were never followed up on that are SEVERAL years old (we're talking more than five years), and I'd just like to start with the proverbial "clean slate" and only use pledges properly moving forward. 

Michael Langley

We have a lot of pledges with a system for reminders.  After the fourth reminder, they get written off based on a query and I use the global tool to do this.  It does not do everything however and if you want to add notes to the pledge you will need to do this individually.  If you do want to use the global write off be very, very careful.  The only reason I use it is because I know exactly what I am writing off.  Before you do anything you should probably do a great deal of analysis to determine which ones to keep.

Milly Whittington

Our organization has to track % of write offs, so we never want to enter a write off unless it truly needs to be written off.

If your gifts are not posted, I would suggest a cleanup of applying the cash gifts to the pledges.  

If your gifts are posted, I would agree that adjustments would be more appropriate than write offs.

 

Candace Chesler

So basically the history with these are that gifts were entered from our Walk program in as pledges until the checks were received in the mail. But since there wasn't a formal structure set in place, upon arrival, some checks would be entered as a paid pledge, but sometimes they would be entered as an outright gift.

Then (to add an additional layer of crazy) there were true pledges that were never followed up on that are SEVERAL years old (we're talking more than five years), and I'd just like to start with the proverbial "clean slate" and only use pledges properly moving forward. 

 

Stacie - some other points to consider.  Do you post gifts form RE into FE?  If yes - are these gifts posted?  If no  - then choose whatever method works for you (write-off vs. adjustment) - keep them as Do Not Post - and be done.

If they ARE posted to the General Ledger through FE - then talk with your accounting staff.  I have WriteOffs and Adjustments set to hit two different accounts in FE.  WriteOffs go against the Pledge Recievables account as bad debt - Adjustments go against the original Fund where the gift was posted.  If the gifts are posted but you don't use FE - still talk with your Accounting Folks.  If they are holding these gifts as a Pledge Recievable then they will need to know that you are writing them off - and will most likely ask for some documentation as to WHY you want to write them off. 

Food for thought - what I have done at previous orgs with "pledges" for a walk-a-thon is enter the pledges in RE - to make the Director of the Event happy - but I coded them as Do Not Post.  I also set the Pay-Cash payments for the Walk Fund debiting the same GL account as Cash payments.  That way - when the pledge payments came in if the data entry folks forgot to apply the payment to the "pledge" - and I didn't catch it before posting - I could delete the pledge without any changes to the GL.

PLUS - this solves the problem of the fund raising staff wanting to classify a gift as a "pledge" when it doesn't meet FASB requirements.