Accounting for Recurring Gifts

Nichole Spates

Hello all!

We're just starting the process of using RE to accept recurring gifts.  My main contact in our accounting office is unsure about how she she log these gifts.  They aren't the same as pledges, at least not how I bring them in to the Raiser's Edge.  She is considering them pledges but then if she books them that way, our respective oustanding pledge numbers will not match.


Our accounting office uses Quickbooks.  I've done some research but haven't really come up with an answer.  Ideas and suggestions are welcome!

Nichole

Joshua Bekerman bCLO bCRE

Depending on your accounting policies, they probably shouldn't book the recurring gift at all (Gift Type = Recurring Gift).  They should only book the actualy payments (Gift Type = Recurring Gift Pay - Cash).  The initial recurring gift isn't really a pledge and is most likely revocable at any time.  The gift amount could also change (increase or decrease) at any time.  Given all of this you're probably better off not booking it as it isn't guaranteed income.

JoAnn Strommen

Ditto what Josh posted.  Not posted as a pledge for exactly the reasons listed.  We are integrated with FE.  Recurring gift gift type does not post to FE, pledges do get posted creating accounts receivable.  Gift type Recurring Gift - pay cash in RE is handled just like a new cash gift in FE. 

Heather MacKenzie

Ditto times 2.  Your accounting staff should treat them as if they were cash gifts only, and just record them when they arrive.

Nichole Spates

Thanks all, this is what I had thought too, a gift isn't a gift until it's hit the bank, and a recurring gift and a pledge are two different animals. The accountants like paper documentation, so that might be part of their hesitation.  I can print a batch or credit card report of course, but there just isn't the usual paper trail associated with a gift. It's all new.  We'll get it sorted out and I appreciate everyone's input!