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Gift Annuity Data Entry

  • 1.  Gift Annuity Data Entry

    Posted 15 days ago

    Good Morning All,

     

    We are in the middle of re-evaluating our planned giving program and entry processes.  One point that is being debated is Charitable Gift Annuities.  Currently the charitable deductible present value is entered as hard credit and the face value is in the soft credit portion on the gift transaction. This created some difficulties in pulling the VSE data from Advance. It also creates some interesting donor stewardship crediting issues.

     

    My last institution put the full face value in the hard and soft credit and captured the NPV in the tender details.  The institution I was at prior to that entered the NPV as the gift in both hard and soft credit and the full face value was never captured in Advance (they are currently looking to add the face value somewhere).

     

    What I have been asked to do is get a sense of what other institutions are doing, using full face value and putting the charitable NPV as a benefit under premiums or in the tender details.  Or entering a transaction for only the charitable deductible gift value and recording the face value somewhere else. We have advocates for both ways so we are trying to get a sense of "best practice" or "typical" entry method.

     

    Kirsten Williams

    logo

    Kirsten Williams. | Director

    kirsten.williams@wku.edu 
    Division of Philanthropy & Alumni Engagement

    Advancement Services
    292 Alumni Avenue | Bowling Green, KY 42101-3416
    Tel: 270.745.5377 |  Fax:
     270.745.5017

      

    Support the WKU Alumni Association as a member.

    Make a gift to support WKU.

     



  • 2.  RE: Gift Annuity Data Entry

    Posted 15 days ago
    Regardless of what numbers are entered where, per CASE, you need to track BOTH the face and IRS deductible amounts.

    For VSE purposes you report the IRS deduction amount.  That is true for all irrevocable planned gifts.

    However, for campaign purposes, CASE urges us to report both amounts in our campaign totals.  Normally, the face value is what's used in counting toward goal.  However, in the interest of transparency CASE wants us to also report the actual deductible amount.

    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: Gift Annuity Data Entry

    Posted 15 days ago
    Kirsten, I was digging through the CASE Guidelines just now to help someone with a planned gift issue.  While digging I found two references for you that provide backup for my earlier comments - in case you need it:
    • The very top of page 24 explains the counting and reporting of am irrevocable deferred gifts at present value.  And page 25, paragraph 1.3.2 explains this again for CGAs.
    • Page 87 (in the campaign management section of the book), paragraph 7.9.2.1 explains the reporting of both amounts for transparency purposes
    Best of luck!

    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


    On Thu, Jun 18, 2020 at 12:27 PM John Taylor <johntaylorconsulting@gmail.com> wrote:
    Regardless of what numbers are entered where, per CASE, you need to track BOTH the face and IRS deductible amounts.

    For VSE purposes you report the IRS deduction amount.  That is true for all irrevocable planned gifts.

    However, for campaign purposes, CASE urges us to report both amounts in our campaign totals.  Normally, the face value is what's used in counting toward goal.  However, in the interest of transparency CASE wants us to also report the actual deductible amount.

    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






  • 4.  RE: Gift Annuity Data Entry

    Posted 11 days ago

    John,

    I have been arguing the reporting end of the need for change on my end since the beginning. I even provided examples from the VSE report to show the need for reporting both pieces.   For one person, they are hung up on where the data should be stored in Advance. Despite providing information from my last two institutions they still want to 'get an idea of how others are doing their data entry'.  For some reason this is a sticking point and has been for months. 

     

    That's why I finally brought it here. I have lots of supporting information on the reporting end but almost nothing on preference for where the data lives. My recommendation to them was to enter full face value in the hard and soft credit for the primary donor with the NPV in the tender details. That keeps the data clean and in easily identifiable fields to create (or use the canned reports) for pulling both pieces of data (face and  easily for report).   That is how my last institution does it.

     

    If we go with entering only the NPV at the donor hard and soft credit transaction level and capture face value in a separate field or in the proposal we can create reports to pull both pieces. This is how my previous institution does it.

     

    This person wants more than these two examples of data entry methods.

     

    Kirsten Williams

    logo

    Kirsten Williams. | Director

    kirsten.williams@wku.edu 
    Division of Philanthropy & Alumni Engagement

    Advancement Services
    292 Alumni Avenue | Bowling Green, KY 42101-3416
    Tel: 270.745.5377 |  Fax:
     270.745.5017

      

    Support the WKU Alumni Association as a member.

    Make a gift to support WKU.

     






  • 5.  RE: Gift Annuity Data Entry

    Posted 11 days ago
    It would be best if you reached out directly to institutions using the same version of Advance.  But even then, you won't find a standard.  I have visited several Advance installations and cannot recall two consistent ways of recording these.  I remember two institutions that did all of their planned giving reporting out of the Advance Planned Giving module and another institution that disregarded Advance entirely and used a combination of PGCalc and Excel.

    I do not see why it matters to your leadership where you store the data within Advance.  As long as it is obvious (can be seen clearly by the end-user), and you can do the reporting piece we have already discussed.

    BTW, another option is to record the NPV as the hard credit and the FMV as the soft credit.  I have seen that a few times as well.  Other versions of Advance (I do not know which one you are using) put the FMV in the legal and soft fields and the NPV in the receipt amount field.  Yet another approach is to record the FMV in the hard and soft areas and then employ the premium feature of Advance and treat the discount as a QPQ.

    Options are quite numerous.  And I don't think what you do matters as long as it is consistent and achieves the two objectives I mentioned above.

    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







  • 6.  RE: Gift Annuity Data Entry

    Posted 10 days ago
    Edited by Alan Whaley 10 days ago
    I do not see why it matters to your leadership where you store the data within Advance. As long as it is obvious (can be seen clearly by the end-user), and you can do the reporting piece we have already discussed.
    I have found some people who may not understand the details about how things are entered and stored (nor are they involved with the details on a regular basis), still want to dictate the structure of how they are entered and/or stored, often in a way that makes sense to them. This can cause wonderful headaches in attempting to report things since the structure ends up missing necessary pieces and requires creative workarounds. 

    ...................................
    Alan B. Whaley
    Fund Development Data Analyst | Fundraising Analytics
    The Rotary Foundation of Rotary International
    Alan.Whaley@rotary.org
    ROTARY INTERNATIONAL | One Rotary Center | 1560 Sherman Ave. | Evanston, IL 60201 USA
    rotary.org
    ------------------------------



  • 7.  RE: Gift Annuity Data Entry

    Posted 11 days ago

    Hi Kirsten,

     

    We share a previous institution, so I won't re-iterate that policy.  ��

     

    At another previous institution, we followed on of the options that you mention, the face value as the hard credit amount (and the soft credit amount), and the NPV/deductible amount in the NPV amount field.

     

    At the Smithsonian, gift entry is well outside my portfolio, but my understanding is that we record the NPV/deductible amount as the hard credit amount (and the soft credit amount), and that we enter a Giving Code with the code type Planned Giving Flag and description PG Face Value to record the face value.

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Good luck!

     

    Alan

     

    Alan S. Hejnal   

    Data Quality Manager

     

    SNAGHTML5cbfa34

     

    Smithsonian Institution - Office of Advancement

    600 Maryland Ave SW Ste 600E

    PO Box 37012, MRC 527

    Washington, DC 20013-7012

    Voice: 202-633-8754 | Email: HejnalA@si.edu