Planned Giving Gifts / CRUT, DAF, etc. Accounting and Managing

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Justin Rehklau
Justin Rehklau
Tenth Anniversary Photogenic First Comment Participant
in Blackbaud Raiser's Edge NXT®: General Discussion
We have a number of Charitable Lead Trusts, Donor Advised Funds, etc. that we manage for our donors. We are trying to figure out the best practices for how we account for those. I have looked through the white pages and community and didn't find an answer yet, so here we go!

 

We receive the initial gift of ($25k) and book it as a deductible planned gift that complies with IRS regulations; however, as the donor advises us, we make distributions to either ourselves or other organizations on their behalf.

 

If we record the initial gift, it isn't truly correct because those monies are under management and can fluctuate, but we still want to be able to summarize how much we have received from the donor over their life-time.

 

Hence our conundrum. Do we book the initial gift in RE, do we only book monies given to us, or do we book both (which would double count gifts on our reports)?

I am interested in hearing how other similar foundations deal with this issue.

 

At present, our accountant is in charge of distributions and we are only tracking the initial gift. We would like to get a Policy/Procedure in place so we can standardize our efforts and reporting.

 

Many thanks!

Justin

 
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  • JoAnn Strommen
    JoAnn Strommen Community All-Star
    Ancient Membership 2,500 Likes 2500 Comments Photogenic
    Justin,

    Was waiting to see if a foundation RE user could offer you advice because they also serve as a DAF.  Having only worked on the side of receiving funds from a DAF, I'm of the opinion that you need to enter and receipt full amount to the donor. I'm assuming that the IRS regs you mentioned require that.  In my experience as a recipient of DAF gift it's not my job to receipt is what correspondence says.  Gift was receipted by DAF organization.



    Are the initial gift and the distributions you receive going to the same fund?  I would think that the initial gift would be in a fund separate from your other funds.  If you feel the need to track the distributions especially those you receive, what about using "Other" for pay method, a gift sub-type that you then can exclude from your reports or marking as do not post if you post gifts?  This could allow you to move $ to the new fund.  I can see desire to be able to report on funds moved from the DAF to one of your other funds.



    Just trying to think of options.  Hope you get some other suggestions as these are just thoughts based on no experience with the situation. Maybe they'll elicit a post saying I'm totally off base. laugh You may want to post your question on fundsvcs.org. 
  • Corbett Shinn
    Corbett Shinn
    Tenth Anniversary 10 Comments Photogenic 5 Likes
    Interested in this topic because we ran into a similar problem. Justin or anyone, were you able to come up with a solution?

    Thanks!
  • Matt Haynes
    Matt Haynes
    Tenth Anniversary Photogenic Name Dropper First Comment
    Justin


    Do you have the planned gift module in RE?  Those gift types don't hit FE, nor appear in 'cash' based reports without being selectively added.  You then can track the realized revenue as cash as it's received along with other detail about the planned gift. 


    Matt Haynes

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