I have some pledges which were made in the middle of this past fiscal year. Our Finance department would like all remaining balances to be placed on the current Fiscal Year. From a Development standpoint the balance should be on the same FY as the initial pledge. Is there anyone else with this issue? How do you handle this situation?
I think you are referring to the fact that Finance wants the unpaid balance to show as due in the Current Fiscal Year, right? If you look at the payment schedule when you booked the pledge, was it to be paid over several years? If so, did you indicate Current and Future, as appropriate, for each payment?
If so, you need to run a batch that updates the appropriate Future payments to Current now that you are in a new fiscal year. There is a special batch type to do this – when you open a new batch, select Future to Current as the batch type, then follow directions. Since this is done only once a year, I’d advise you to look at the documentation to make sure you are using the right dates when you set up the batch.
_______________
Julie P. Hamre
Development Associate
Strathmore Hall Foundation, Inc.
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North Bethesda, MD 20852-3385
301.581.5136; fax 301.581.5201
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-----Original Message----- From: Tessitura Development Forum [mailto:forums-development@tessituranetwork.com] On Behalf Of Marie Kocher Sent: Tuesday, July 28, 2009 5:01 PM To: Julie Hamre Subject: [Tessitura Development Forum] Pledges and Fiscal Years I have some pledges which were made in the middle of this past fiscal year. Our Finance department would like all remaining balances to be placed on the current Fiscal Year. From a Development standpoint the balance should be on the same FY as the initial pledge. Is there anyone else with this issue? How do you handle this situation? This message was sent automatically to you by www.tessituranetwork.com because you subscribed to the Tessitura Development Forum. You may reply to this message to post to the Development forum or visit the site to search, read and post to the forums. In the interest of keeping the forum posts from becoming cluttered, we encourage you to delete previous message text from your reply before sending. Thank you!
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Julie-
I am not sure if that is what I am trying to do. But I will look into it.
But, no the pledges were not over multiple years. Say someone gives a pledge of $540.00 and they want to make monthly payments of $45.00 (12 payments). However they made their pledge and have been paying every month since November 2008. Our finance department wants to put all remaining payments from July 2009-Oct 2009 on the FY10 books.
I don’t know enough financial terms…but am I actually talking about reconciliation, or no?
Thanks for your help.
Marie Kocher
Development Assistant
Kansas City Ballet
1616 Broadway
Kansas City, MO 64108
(816) 931-2232
www.kcballet.org
From: Tessitura Development Forum [mailto:forums-development@tessituranetwork.com] On Behalf Of Julie Hamre Sent: Tuesday, July 28, 2009 4:26 PM To: Marie Kocher Subject: RE: [Tessitura Development Forum] Pledges and Fiscal Years
-----Original Message----- From: Tessitura Development Forum [mailto:forums-development@tessituranetwork.com] On Behalf Of Marie Kocher Sent: Tuesday, July 28, 2009 5:01 PM To: Julie Hamre Subject: [Tessitura Development Forum] Pledges and Fiscal Years I have some pledges which were made in the middle of this past fiscal year. Our Finance department would like all remaining balances to be placed on the current Fiscal Year. From a Development standpoint the balance should be on the same FY as the initial pledge. Is there anyone else with this issue? How do you handle this situation? This message was sent automatically to you by www.tessituranetwork.com because you subscribed to the Tessitura Development Forum. You may reply to this message to post to the Development forum or visit the site to search, read and post to the forums. In the interest of keeping the forum posts from becoming cluttered, we encourage you to delete previous message text from your reply before sending. Thank you! This message was sent automatically to you by www.tessituranetwork.com because you subscribed to the Tessitura Development Forum. You may reply to this message to post to the Development forum or visit the site to search, read and post to the forums. In the interest of keeping the forum posts from becoming cluttered, we encourage you to delete previous message text from your reply before sending. Thank you!
Marie,
Part of the answer to your question will rest with whether your organization operates on an accrual accounting or cash accounting basis, which your finance team can advise you on.
In an accrual accounting environment, a booked pledge in any given fiscal year lives with that fiscal year, so in your example, the entire $540 would live in FY09. Signed pledges are the driving force in that environment, and even a signed pledge on the last day of your fiscal year, with no cash for months following, would be "countable" for FY09 for development and finance's purposes. (Although there is still a point at which an outstanding, unpaid pledge would cause a red flag for finance and auditers...but as I'm not a "finance" person, I'm not going to advise.) My last organization worked on this model, and it was all about the pledges.
On the other hand, if you are operating on a cash accounting basis, then finance is correct, in that any remaining payments (beginning July 2009) should rightfully be "counted" in FY10, because everything is driven by cash in the door. We have actually moved towards using Tessitura to support our cash accounting model where I am now, which means we do have to take the time to "split" pledges...so in your example, $360 would be booked into FY09 (with payments due on a monthly basis through June 2009), with the remaining $180 booked into an FY10 pledge for the remaining payments.
Don't know if this entirely answers your question? But maybe it helps!
Julia Foster
Director of Annual Giving
Orange County Performing Arts Center
We actually did a fair amount of clean-up...backing out future-booked pledges from FY09 and creating the pledges for FY10 (and beyond, if applicable). I imagine our Tessitura administrators ran the unpaid balances pledge report for future fiscal years and then processed one-by-one to back-out and re-book under each constituent.