Best Practice: crediting donations for year-end donation summary

Drew Lineberger

What is the best practice when entering a gift that a parent gives in their student's name, but we know it comes from the parent? We have the student in our database so gift has been credited to them; however, I am thinking from recognizing the gift in a year-end donation summary for tax purposes. Should the gift be in the parent's name or keep it in the students? Thanks so much for your help on this.

Drew Lineberger

Dariel Dixon 2

@Drew Lineberger How do you know it comes from the parent? If you put it on the record of the student, why change it?

Faith Murray

@Drew Lineberger
According to the IRS, tax credit must be given to the person from whose account it comes. So in the case of a credit card gift or check, you would post it to the donor whose name is on the card/account. It can be marked “in honor of” the student as a tribute, or it can be soft credited to the student's record if you use soft credits.

The only exception would be a cash gift; in that case, there's little definitive way to decide whose account it came from. In that case, you might apply it to the student's donor record if the parents intended it that way.

Drew Lineberger

@Faith Murray Thanks so much; this is very clear and helpful!

Candace Chesler

@Drew Lineberger - this fall one of our Annual Campaign Parent Volunteers decided to teach his children about philanthropy. He sat with each one and created a pledge in their name - via our online donation form. He specifically told us that he will be sending the money in for these donations - but he wants them on the constituent record of his children. (We are not talking about individual gifts of over $250)
I am not a tax advisor - I am in the business of stewarding donors - and as such - I put those three pledges on the records of the students.