My org recently received a settlement on an Annuity for which we are the remainder beneficiary. According to paperwork received from the donor at the time the annuity was purchased, the designated purpose was to support a capital campaign for building renovation. That campaign was completed but the building and land was subsequently sold.
For reasons we don't know (all the players have changed since then) that bequest was not booked by either Advancement or Finance, so it was never part of our accounts receivable. My understanding is that if the pledge had been booked, we would apply this gift to our accounts receivable, with any difference between the pledged and actual amount being recorded as a gain/loss on the finance side.
Since the gift was never booked, I believe this is now a "new gift" but we are unable to honor the designation as we no longer own the building in question. In order to accept it, we would have to ask the estate attorney and the foundation through which the annuity was purchased to authorize a change in designation. Both spouses are deceased and they have no heirs.
Is my understanding correct? Is there anything I am missing here about the difference between a pledge that was actually recorded and one that was not? As always, thanks so much for collective wisdom and knowledge of this group!