Hello Everyone!
I'm hoping to get some guidance and/or best practices on processing, reporting on, and recognizing deferred gifts/sponsorships.
For example, we receive the money for some of our next fiscal year sponsorships in the current fiscal year. Historically we have reported on the revenue as it comes in, but new leadership would like for us to report on that revenue in the fiscal year the sponsorship is intended for. Our finance team used to make that adjustment on their end and we would still report it on the fundraising side.
How do you normally handle this? Do you just go ahead and put it towards the next FY campaign? I'm worried about how this will affect reporting as right now all gifts are confined within the dates of the fiscal year I'm reporting on. Do you create a separate fund/campaign for deferred gifts only? This was a solution that my finance team suggested that I'm struggling to work out.
I looked in the Development and Finance Forums and only saw posts from 7+ years ago so I wasn't sure if there were any new solutions.
It's looking like this will be a big change in processing and reporting on my end and I would really love any and all guidance.
-Kelsey
Hello Kelsey, it does sound like there's a change in your process coming your way, but I think it'll ultimately make life easier for you and Finance. We have future year campaigns set up a few years in advance so that if we receive pledges or gifts for future fiscal years we can process them right away and not worry about them later. I've learned the trick in setting up future years is to make sure to check the box that says "Auto-Restrict Conts Before Start Date" in the Campaign setup. If I don't Finance notices a mistake right away, as the money gets released into this fiscal year even though it's marked for a future one. Then Finance works some magic on their side to release the money once that particular fiscal year starts. Because we have gifts set up for many future years, in my reports I make sure to select a report that allows me to not only select the date range, but the particular campaign I'm wanting. That will prevent you from pulling in future year gifts during the select date range. Best of luck!