Hello,
Does anyone have any suggestions or recommendations on how to handle situations where other entities make payments towards a pledge? For example, if a Family Foundation or Donor Advised Fund pays a pledge payment for a pledge on the household? We're running into this issue for both Annual Fund pledges, where the multi year pledge is broken out to one contribution per year, and Endowment pledges, where the entire multi-year pledge is entered as one pledge.
Thanks!
Memo Notice 2017-73 Policy Implications.docx
Attached is a memo I put together when Notice 2017-73 came out. https://www.irs.gov/pub/irs-drop/n-17-73.pdf.
Basically, the Notice states that as long as you didn't know the 3rd party was going to be paying the pledge payment, you can apply it to the pledge. In Tessitura, what we do now is reduce the pledge by the payment amount and book a new gift from the 3rd party. We just always make sure the Fund/Campaign/Restrictions are all exactly the same between the pledge and the new contribution.