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Fulfilled Deferred Gift Counting

  • 1.  Fulfilled Deferred Gift Counting

    Posted 29 days ago

    Hello community,


    Looking for advice on deferred gift counting. In our campaign report we have three main categories - outright gifts and pledges, irrevocable deferred gifts, and revocable deferred gifts. Totals are shown by year.


    We have a situation where several large deferred gifts were both entered and fulfilled within the campaign - they were fulfilled a couple of years after being entered, or in some cases, fulfilled the same year. According to NACGP guidelines, a gift should be in the category representing its most recent "state" - so, those fulfilled deferred gifts should move to the Outright Gifts and Pledges category for the year they were fulfilled. This also makes more sense in regards to the reason for listing the separate categories - if we already have a large chunk of the money in hand, it shouldn't show in the category of gifts with an unknown fulfillment date.


    Are we thinking of this right? Any advice on this?



    ------------------------------
    Lauren Hartman
    Lead Reports Developer
    University of Alaska Foundation
    lehartman@alaska.edu
    ------------------------------


  • 2.  RE: Fulfilled Deferred Gift Counting

    Posted 29 days ago
    Lauren, NACGP, and CASE have different guidelines.  You really cannot follow both in the same report.  So, much depends on whether you are reporting per CASE or NACGP.

    For CASE, the NACGP categories are not relevant (for campaign reporting).  The fact that a commitment was realized during the same period does not change anything.  You still count the full amount.  The only difference is when the cash comes in the outstanding pledge amount goes down and the cash amount goes up.

    As for NACGP, you are correct.  You report "what it is" on the day of the report.

    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: Fulfilled Deferred Gift Counting

    Posted 29 days ago
    Thank you John! To clarify, you're saying that if we're following CASE, we should still keep fulfilled deferred gifts in the Deferred Gift category (and not show them in cash and pledges), for the year they were committed?

    ------------------------------
    Lauren Hartman
    Lead Reports Developer
    University of Alaska Foundation
    lehartman@alaska.edu
    ------------------------------



  • 4.  RE: Fulfilled Deferred Gift Counting

    Posted 29 days ago
    I assume you are talking about a bequest expectancy.  I'd have to see what kind of reporting you are doing.  Normally, there are two sets of reports.  One that shows productivity (new commitments, new bequest expectancies, new irrevocable gifts, and new outright gifts).  A second report, Gifts Received, shows cash in the door and omits pledges and bequest expectancies.

    But in campaign reporting, you typically do not move money around.  This was a deferred gift and always shall be.  It was never an "outright" gift.  The only "outright" gift you might record in this scenario is a realized bequest you never knew about or the excess received over the bequest amount that you did record.

    John

    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







  • 5.  RE: Fulfilled Deferred Gift Counting

    Posted 29 days ago

    With respect to irrevocable deferred gifts, absolutely.

     

    With respect to bequest expectancies recorded and later matured during an ongoing campaign, with respect to campaign reporting, I have seen those moved from the revocable/conditional category to the outright category.

     

    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                                                                                                                                            

     






  • 6.  RE: Fulfilled Deferred Gift Counting

    Posted 29 days ago
    I think it really depends on how you have always reported - and who you are reporting to.  It's been a few years since I completed the CASE Survey of Cumulative Campaign Activity.  But the last survey I completed did not have you moving money between columns.  There was one column for "current/outright gifts and pledges" and another column for "planned gifts (future commitments)".  The two columns added together gave you the campaign total.

    Certainly, moving money between the two columns still gives you the same total.  But by definition, I have difficulty equating a realized bequest paying on an expectancy as "outright" or "current".

    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







  • 7.  RE: Fulfilled Deferred Gift Counting

    Posted 29 days ago

    There was-when last I worked with the report-an additional column for revocable and conditional commitments, which is where bequest intentions were reported, and from which matured bequest intentions made during the campaign were moved.

     

    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                                                                                                                                            

     






  • 8.  RE: Fulfilled Deferred Gift Counting

    Posted 29 days ago
    You know, what I really preferred was - back in the day - when we reported these as realized versus unrealized.  Brian Dowling had that as a suggestion in his paper on campaign reporting:

    Useful to explain the counting policy for deferred gifts in terms of unrealized vs. realized so readers know what is being counted. Include implied interest rates used for net present value calculations.
    • Realized by gift type (annuity, trust, bequests, insurance, retirement accounts, etc.)
    • Unrealized by gift type and if possible a projected future cash inflow from these gifts.
    • Relationship of deferred giving realized to total amount of money raised during the campaign.


    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