Pledges and fund selection

Julie Whitney 3 · February 2019

Hello!

We have a capital campaign fund and have fundraiser's such as an auxiliary group raises money for us that come from different events/lobby sales (one by one, mostly by individuals) throughout the year. Recently they pledged to our campaign but the only way for them to pay it is through transfers that happen behind the scene with finance. My question is how do we track this in RE since they won't be able to actually pay by check of cash?

Option 1:

Create a pledge and write it off with a note so that we can report on this gift.

Thank you in advance. I hope I can answer any questions you may have.

Aaron Rothberg · February 2019

Hi Julie-

It depends upon your reporting needs. If accounting is asking you to separate this payment method from everything else for general ledger purposes, you could create a new Gift Subtype called "Transfer". We have that in our database. If you don't need to break this money out, I would think you could leave the Gift Subtype as Cash so it comes out in your fundraising totals, taking into consideration any policies or procedures you have about reconciling with your business office. You can, of course, track the details in a note on the Gift Miscellaneous tab.

Julie Whitney 3 · February 2019

Aaron Rothberg:

Hi Julie-

It depends upon your reporting needs. If accounting is asking you to separate this payment method from everything else for general ledger purposes, you could create a new Gift Subtype called "Transfer". We have that in our database. If you don't need to break this money out, I would think you could leave the Gift Subtype as Cash so it comes out in your fundraising totals, taking into consideration any policies or procedures you have about reconciling with your business office. You can, of course, track the details in a note on the Gift Miscellaneous tab.

Hi Aaron,

This actually sounds like something that could work since we report to finance monthly on all gifts (cash and pledge). In terms of reporting for finance, we would then update our finance reports to reflect this gift subtype, correct?

Thank you!

Aaron Rothberg · February 2019

That sounds right to me. If you post to a a general ledger you'll need to have a discussion with finance to determine if that Subtype should go into a different ledger account or not, but if you don't post to a general ledger, then yes, just include the Gift Subtype in your reports so fiance can see that gift is a behind-the-scenes bank transfer.

JoAnn Strommen · February 2019

Aaron Rothberg‍ suggestion would work well. Restructuring, I would definitely talk about doing it that way. We enter these transfers, we have just a couple per year, as a regular cash gift, note in reference field 'internal transfer' and the gift is marked "Do Not Post." This is what was set up with Finance years ago. It would be an option, but I think gift subtype is a better one.

We have used gift sub-type I guess also when we cancelled a capital campaign and funds were moved to various other funds based on donors preference. We recorded the transfer using table entries in gift sub-type.

Pledges and fund selection

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