FundSvcs Community

Expand all | Collapse all

Crediting Donors from Benevity and other 3rd Party vendors with fees

  • 1.  Crediting Donors from Benevity and other 3rd Party vendors with fees

    Posted 18 days ago
    Good Morning,
    First, I apologize if this has already been discussed, but I didn't see on previous posts.  Everyone knows how much we all enjoy the hassles of Benevity processing and there seem to be a few different interpretations of how and who the revenue should be recorded under.  However, we are struggling with the fact that we are getting more and more donations via Benevity between payroll, matching and out right gifts and how we should be giving credit within our system to the donor.  Not all gifts from Benevity are subject to a fee (customer support fee or merchant fees).  We have been recording these gifts based on what we actually receive vs. the full face amount (if fee is applied).  However, Benevity has placed on their website that we should acknowledge the donors at the full donation amount as this is what the donors are expecting.  We are on the fence with this as we are not going to acknowledge our donors for a total we didn't actually receive.  So here is where I am looking to see what other schools are doing.  We could enter the full amount into our data base and "eat' the fees and chalk it up to the cost of doing business, but here is our issue, we don't have a contract with Benevity - other companies do and therefore we shouldn't take the hit for these fees (especially because a lot of these donors don't realize we are not getting their full donations).  Or we could (as we have been doing) record the donation for the amount we are actually receiving and recognize the donors at that amount, but we don't want to upset our donors either.  Thoughts appreciated.

    Regards,

    ------------------------------
    Bonnie Burleigh
    Associate Director of Data Services
    The UConn Foundation, Inc.
    bburleigh@foundation.uconn.edu
    860-486.6625
    ------------------------------


  • 2.  RE: Crediting Donors from Benevity and other 3rd Party vendors with fees

    Posted 18 days ago
    You have been following the correct protocol regarding counting and receipting.  Whether you want to thank them for the total amount they paid to Benevity is up to you.  But I would make sure it is clear that the donor knows that you never received the full amount.

    When you think about this, there's no difference with these gifts than those through the United Way who also takes a (bigger) cut.  So however you acknowledge UW gifts is probably the way you should these.

    John


    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Crediting Donors from Benevity and other 3rd Party vendors with fees

    Posted 18 days ago

    Hi Bonnie,

     

    We record the gift as what we received, but our CRM allows us to also have a recognition amount on that gift-the amount the donor intended. Since they have already been receipted and we are only sending soft-credit letters, we use the recognition amount in those letters.

     

    --Jodie

    Jodie M. Ralston
    Executive Director, Advancement Services
    Advancement and External Affairs

    T 315.443.1718  F 315.443.2874
    jralston@syr.edu

    Syracuse University Forever Orange The Campaign for Syracuse University

     






  • 4.  RE: Crediting Donors from Benevity and other 3rd Party vendors with fees

    Posted 18 days ago
    Hi Bonnie,

    The way Benevity works is essentially like a DAF or private foundation - givers give to an intermediary foundation using the software. It's not the same as receiving money from a payment processor, who is an agent on your behalf, and with whom you have negotiated a service fee.

    Benevity's instructions regarding acknowledgement are because they don't want to deal with donors being unhappy about the difference between what they donated and what the charity received, so they want you to acknowledge the full amount. 

    My advice is as follows: if you can record a recognition amount different from the donation amount, I would do that, and perhaps add some small print disclosure that "The total amount received from Benevity is reduced by processing fees" or something like that. If you can't record a different amount, I would acknowledge the amount actually received and indicate "the remainder of your gift through Benevity directly covers payment processing fees and other valuable services that make programs like this possible." Since this is all soft credit, there aren't tax implications either way.

    Thank you,
    Isaac Shalev
    CRM Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:






  • 5.  RE: Crediting Donors from Benevity and other 3rd Party vendors with fees

    Posted 18 days ago

    Thanks for your insight on this Isaac.  We now need to decide what makes the most sense.

     

    Regards,

     

    Bonnie Burleigh

    Associate Director of Data Services

    The University of CT Foundation, Inc.

    2390 Alumni Drive Storrs, CT 06269-3206

    W: 860.486.6625

    F: 860.486.8150

    www.foundation.uconn.edu

     






  • 6.  RE: Crediting Donors from Benevity and other 3rd Party vendors with fees

    Posted 17 days ago

    While I understand that our organization hasn't entered into a contract with Benevity, the gifting organization has.  I believe that there is a cost of doing business, as well as the cost of the gift.  If a donor has to use a Benevity provided platform to get a gift match, why should we penalize them for the fees associated with the gift?  I think that it can depend on the gift, but I would be careful how we account for these things.  The CRM database is not the GL, so I think there is a case to be made either way.

     

    It is a slippery slope.

     

    Dariel Dixon | Business Analyst

    Rex Healthcare Foundation

    2500 Blue Ridge Road, Suite 325

    Raleigh, NC 27607

    Dariel.Dixon@unchealth.unc.edu | (919) 784-7689

     

    ----- Confidentiality Notice -----
    The information contained in (or attached to) this electronic message may be legally privileged and/or confidential information. If you have received this communication in error, please notify the sender immediately and delete the message.