Conditional Pledge Posting Options

Keri Hendon:
I need some guidance. We have a pledge that I need to put in RE, but the $500k gift that has a conditional clause on parent participation in the campaign. The first $400k is a regular pledge to be paid over 2 years, but the remaining $100k will be donated in the 3rd year in $1,000 increments to match the percentage of parent participation. (Example: If 95% parents participate in the campaign, they will donate $95k.) How is the best way to have this in RE for reporting but not mess up the FE/Bus. Office side of things? My CFO doesn't want the final $100k posted so I was thinking I would have it as a "do not post." But before I move forward, does anyone have better solutions? Thank you, Keri

I created a gift subtype of "contingent pledge" for these situations. I set up the fund distribution to debit and credit the same account and the post away. This creates a db record of the pledge so it is visible. I also like to post everything so using the same account for the debit and credit results in a no impact gl posting. ( I inherited a db where the posting was done inconsistently so I instituted a "post everything" business rule which makes reporting and reconciling easier.). Later, when the contingency is met, do a gift adjustment to remove the subtype. Post the adjustment and the revenue will be recorded. I'm an accountant by trade, so if your business office has questions, feel free to reach out.