Recording Charitable Remainder Trusts with outside Trustee - as Proposal in Prospect tab

Claire SunSpiral

Hi all -


We have a Charitable Remainder Trust (with an outside Trustee), which states that we'll receive a fixed amount (say $100) when the donor passes away.  We are not the trustee, so we don't have the trust assets - our Accounting department just recorded a receivable for the present value of the expected amount, adjusted each year for the donor's life expectancy.


We're trying to figure out the best way to record this in RE.  Previously, they had recorded a pledge for $100, but that's not correct.  We don't have a pledge receivable on the accounting books for $100, since we have this other receivable based on present value/ life expectancy.


Here's what I'm thinking:


1) record the full $100 as a "proposal" in the Prospects Tab.

2) record a "gift" (linked to the proposal") for the initial revenue recognized on the gift, and for each annual adjustment to the receivable value, calculated by the accounting department.

3) once we receive the final cash, there will be one final "gift" that will also be linked to the proposal, but otherwise, the cash is received by accounting, not Development, since it's mostly a conversion from a receivable asset to cash - not a new gift at that time.


How does this sound?  Does anyone have a better way?  Should we be using Planned Gifts?  (but if we do, then what happens when we get the final check for $100?).


I'm a newbie to RE - I mostly work in FE - so thanks for your help!


Claire