I'd like to start a conversation with those of you who use PayPal (or a similar resource) for online giving.
We made a decision as a department to acknowledge donors for the full amount of their gift, despite the fact that when we receive the check from PayPal, around 3% is taken out. We decided to expense those costs out of our usual Credit Card Fee line, but don't know how to reflect that decision in Tess.
So what I have on my hands is a pledge entered for the full amount of the gift (example $100), a check for a lower amount (ex. $97.50), and the need to fulfill the entire pledge payment.
What have other organizations done to remedy this situation?
Hi Andrea,
We're not using PayPal but we've encountered similar situations when gifts are processed by third parties. We set up a separate payment method tied to the GL where those fees are expensed. At the time of gift entry, we enter the actual amount of the gift received the usual way, and then on the payments screen insert a second payment to the "Third Party Fees" payment method for the amount that was deducted in fees. E.g., we would enter $97 as a check and $3 to third party fees. On the contribution side it reflects the full $100, but things are still accounted for correctly.
Hope that helps!