Third party pledge payments

Based on the governing rules of a donor advise fund – its checks/grants CANNOT be used to fulfill a pledge.  

So to keep things kosher in v.11 you want to do exactly what you did in v.10.  You soft credit the donor who recommended the grant and cancel the existing pledge in the donor’s record.

We receive gifts quite often from donor advised funds and the soft credit (in our color world a green bar) works beautifully when there is not a pledge on an individual's record.  At a past organization we would adjust the pledge on the individual's record to reflect the amount of the monies received from the donor advised fund and then choose the creditee function to apply credit from the record on which the check was written. The pledges were not created in the foundation's record only on the individual account. as we rarely knew from which entity the check would arrive

Has that process changed in Version 11?  Can we now "pay" a pledge from a check received from a third party while crediting the individual in the same entry?

I am told that this organization has not done it this way in the past, but I don't see another way around it.

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Hey Michelle,

I’ll pipe in a little here also.  No, the functionality is not available in v11 to pay a pledge with a soft credit.  It is an enhancement request and the Network is aware of the desire for this ability. 

Leslie’s point is true in that most donor advised funds and many foundations do not allow the funds to be used to satisfy a prior commitment.  To circumvent this, we “write-off” the pledge and book the “new gift” to the organization’s record and soft credit to the individual’s record with a gift note in the original pledge.  Make sure to read the letters that arrive with the checks as they will specify whether or not the funds may be used to satisfy a prior commitment, receive benefits, etc.  If they do not have language prohibiting the practice, you may use the funds to satisfy a pledge (though the functionality in Tessitura still doesn’t exist to soft credit a pledge payment).  

Many cautions against booking the funds directly to the individual’s record: we used to do this in the past until a few foundations were audited and asked us for a history of all of their contributions to our organization.  As you can imagine, it was very difficult to compile the data that was booked directly to the individual record without a soft credit from the organization’s record.  We’ve changed this practice and it has been much smoother since.

Best,

Amber

Amber Newsome

Manager of Special Campaigns
Segerstrom Center for the Arts

E ANewsome@SCFTA.org

We receive gifts quite often from donor advised funds and the soft credit (in our color world a green bar) works beautifully when there is not a pledge on an individual's record.  At a past organization we would adjust the pledge on the individual's record to reflect the amount of the monies received from the donor advised fund and then choose the creditee function to apply credit from the record on which the check was written. The pledges were not created in the foundation's record only on the individual account. as we rarely knew from which entity the check would arrive

Has that process changed in Version 11?  Can we now "pay" a pledge from a check received from a third party while crediting the individual in the same entry?

I am told that this organization has not done it this way in the past, but I don't see another way around it.

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!