We are evaluating current gift processing and associated business process practices associated with our employee payroll deducting giving. Is anyone willing to share their standard operating procedure for how they record these types of gifts (specifically – do you record as a commitment/pledge, or just outright) and the best practice reasoning behind your protocol? Also happy to be pointed to IRS guidelines or additional resources on this topic.
Director, Development Operations
IU Health Foundation
317.962.9304 | email@example.com
We use RE for gift processing and have two options we can use when it comes to our payroll deduction. The forms that the employees fill out list both options.
1) They can request that X dollars be pulled from their checks for the next X number of months. In these cases we figure out the total that will be given and add a pledge to the system with the payment schedule as monthly to match the deduction.
2) The second option is they can request that X dollars be pulled from their checks until they request (in writing) for the deduction to stop. In these cases we enter a recurring gift with the dollar amount matching the amount requested to be withheld.
In both of these cases we send a conformation acknowledgement to the employee going over the amount of the deduction, where the money will be going, and that we will send a receipt at the end of each year totaling the amount given.
We look at these gifts like we look at donors who allow us to charge their credit cards each month. Do they have a goal (amount) they wish to reach or are they just giving each month until they decide they no longer wish to give.
Gift Processing Specialist
Development Operations Coordinator
North Shore Country Day
310 Green Bay Road, Winnetka, IL 60093