Employee Giving Campaign Issues

Lanetta Gilder

Hello everyone!

Needing assistance solving a few employee giving campaign issues.

Your organization has an employee giving program and leadership wants to report out on the commitment from the employee giving initiative for the year. Employees start to make payments to the campaign this month and the organization has received the first gift via payroll deduction.

In the past, advancement and accounting has split the contributions to account for goods & services received (ie backpacks, water bottles and t-shirt) to reflect the fair market cost of goods received as an employee. The total amount of goods received is $50. (Ie split gift unrestricted fund and a fund to capture cost of FMV)

Here’s the questions:

1. Should the org record the employee contributions as a 26 biweekly pay schedule as a pledge to pay down? (Which doesn’t count for possible write offs due to possible employee turnover)? Or should the employee contributions be recorded as a recurring gift on the same 26 biweekly schedule?

2. Both advancement and accounting want to apply the fair market value to the payroll payments. Should the $50 FMV be applied to the payroll deductions until the amount is $0 for IRS purposes? Note the FMV pay down could run into multiple payroll deductions.

3.Should the FMV, be added as a benefit where it will adjust the receipted amount?

4. How should employees giving be used in reporting tools in RE7 or RE NXT, if they want to report based on the receipt amount?

Thanks in advance for your feedback! ?

Christine Robertson 4

@Lanetta Gilder A few things to consider:

• Employment turnover - how does that effect the amounts actually paid as well as the upkeep of the gifts (particularly with pledge payments). If the donor only gives $10 and that is the FMV of what they received, then they should not receive any receipts.
• Employees who do not always receive a paycheck (PT employees who don't get paid when they don't work, etc.)
• Do you need pledges for reporting purposes or will they cause more work than you can justify for the end results?
• Will pledges cause issues with your current pledge status reporting procedures?