Hello!
I am having trouble figuring out the best way to book multi-year pledges that will be paid by a donor's Donor Advised Fund. I want to put the pledge in the donors record since they are the one who will be/wants to receive the invoice, however when the money comes in it will be booked to the Donor Advised Fund account and soft credited to the donors account for proper booking.
Does anyone have a best practice for scenarios like this? or do I simply need to put in the pledge in the donor account and then zero it out when the payment comes in from the DAF and soft credit it appropriately?
Thank you!
There was some discussion about during the Tessitura Conference at Pledge Tracking, Collections, and Reporting and at the Creditee/Creditor Tracking and Reporting peer-to-peer presentation.
We do things the "bad" way at City Center—any check from anywhere can pay off a donor's pledge. This means that our database does not accurately link payments to people/funds/companies that cut the checks.
We only did this after discussion with our Finance office—and our Finance office verifying with our auditors that we could still provide them with the information they needed. We are also very careful in our acknowledgement letter tax language.
So speak with your Finance department and discuss their reporting requirements—and your own!