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Recognition Credit Question - Network for Good net fees

  • 1.  Recognition Credit Question - Network for Good net fees

    Posted 07-06-2020 07:59 AM

    Happy Monday listers!

    1. Donor makes $1,000 gift through payroll at work.
    2. Employer uses Network for Good to distribute the gift to JMU via it's DAF.
    3. Check arrives net fees at ~ $950.

    Do you, at your institution, give the donor $1,000 soft/recognition credit for the gift (our Foundation is forbidding us to do so)?

    Thanks,

    Debbie

    James Madison University

    Assistant Vice-President, Advancement Information Services

    jordands@jmu.edu



  • 2.  RE: Recognition Credit Question - Network for Good net fees

    Posted 07-07-2020 09:15 AM

    Hello,

     

    We soft-credit the donor for the amount received. We have a giving society that starts at $1000. According to your example, the donor wouldn't be included unless they gave an additional $50. We can't control the fees the 3rd parties charge.

     

    Donors seem to understand fees and we even have a few donors change the format in which they give to avoid or lessen fees.

     

    Lara Couture

    Director of Advancement Services

     

    Office: 262-951-3101

    carrollu.edu

     

    carroll-logo-email

     

    100 N. East Avenue | Waukesha, WI 53186

     






  • 3.  RE: Recognition Credit Question - Network for Good net fees

    Posted 07-07-2020 01:24 PM
    We advise that the amount the donor gave should be credited to the donor for recognition purposes, and to reduce the visibility of fees as much as possible. It's like sales tax: Grover Nordquist understood that making taxes visible and unbundled would build opposition to them. In the charitable context, we don't want to deter contributions, or to funnel contributions to inefficient channels because of fee visibility. And just like sales tax, it's not a good customer experience to see a price tag of $99, and then an amount due at the register of $105 - so having a recognition society at $1k, but which actually requires a donation of $1,062.50 isn't a good experience for the donor. It's almost a guarantee that you'll have a bunch of donors who gave $1k, but you stewarded at a lower level because you credited them for $950.

    There's also a consistency issue. An online donation is going to cost you a couple of points, but you hard credit the donor for the full amount before fees, right? For the donor, the direct gift or the workplace payroll gift are the same: it's $1,000. For you, the revenue is within a few bucks of the same - the fees aren't that disparate. But one donor will get stewarded one way, and the other will get stewarded another - without any strategy behind that choice. This seems like a distinction that actively frustrates your stewardship efforts.


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

    Schedule a 30-minute consultation now:






  • 4.  RE: Recognition Credit Question - Network for Good net fees

    Posted 07-07-2020 01:45 PM

    I would love to recognize folks at the $1000 level, but how do I get $'s to reconcile? We are in RE. I've always wondered how to book this situation as $1000 when we only received $950. I'm not sure how to get our Business Office on board with this.

     

    When an online gift is made, we were charged the fee. In this situation we aren't.

     

    Any clarification would be wonderful. Sometimes, I think it's just using the correct language. I already know that I don't speak "Business Office" very fluently.

     

    Lara Couture

    Director of Advancement Services

     

    Office: 262-951-3101

    carrollu.edu

     

    carroll-logo-email

     

    100 N. East Avenue | Waukesha, WI 53186

     






  • 5.  RE: Recognition Credit Question - Network for Good net fees

    Posted 07-07-2020 01:51 PM
    I do not think it makes sense to give credit for less than you receive - except in some special cases.  Those cases I typically reserve for gifts of securities.  I realize some donors may feel they deserve the credit.  But it's not what you have received.  And what do you do if that same donor has a $1,000 pledge on the books when you receive only $950?  Are you going to give them the same recognition as you do another person who gave you the full $1,000?  Are you going to ask them for the missing $50?

    It's also a real problem when donors do not understand that you are not receiving what they thought they were giving.  "Rewarding" them by giving full credit when that isn't what you received seems counterintuitive.

    However, if you plan on doing so then you must do so all the time every time.  So not just Network for Good.  But also Benevity.  And also the United Way.  And also the Combined Federal Campaign.  And so on and so forth.

    Also, keep in mind that several advancement CRMs do not allow you to give more soft-credit than the legal amount.  So you might not be able to do this anyway.

    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: Recognition Credit Question - Network for Good net fees

    Posted 07-07-2020 03:02 PM
    Lara, the reconciliation process is going to look different at different organizations, and with different systems.

    Many orgs that use RE don't reconcile soft credits to anything - the reconciliation is between the hard credit you gave to the DAF that wrote you the check. Rebecca's suggested approach is also a good method for maintaining the 1:1 relationship btw the hard credit and soft credit amount.

    At another client, the decision was made not to change the tracking, but to include anyone within 5% of the stated giving threshold as a member of a recognition society. The thinking was that it was worse to accidentally exclude someone who gave $5k but through a DAF and was undercredited, than it was to include someone who gave only $4,749 directly and was overcredited. I thought there was a lot of wisdom in this decision.


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

    Schedule a 30-minute consultation now:







  • 7.  RE: Recognition Credit Question - Network for Good net fees

    Posted 07-07-2020 01:47 PM

    Hi Deborah,

     

    We would book this as a $950 gift with a $50 'non-gift,' called "3rd party processing fee." This non-gift doesn't feed to our Accounting system, and doesn't count in our campaign totals, but it is included in stewardship reports, so staff have the full picture and can choose to include that $50 in determining the appropriate donor level, etc.

     

    Cheers,

     

    Rebecca Weitz

    she/her/hers

    Senior Director, Gift Management

    University of Colorado Foundation

    1800 Grant Street, Suite 725, Denver, CO 80203 

    rebecca.weitz@cufund.org

    Direct 303-541-1206

    Hotline 303-541-1290

    To make a donation online, please visit giving.cu.edu

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