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Benevity, Mycause, etc - Standardization help

  • 1.  Benevity, Mycause, etc - Standardization help

    Posted 17 days ago
    We recently lost both our gift processors, which has been painful but has provided an opportunity to take a good look at our procedures. One area we've discovered needs a lot of help is in how we're handling the gifts (and the matches) that come in from these donation management companies.  I understand that the contributions should be considered DAFs, but bigger picture we're looking to document clearly - and in a way understandable to the gift processors - how they should be entered in the system.  There's been a lot of inconsistency regarding crediting around these gifts.  Before I start writing this myself I wondered if anyone has documentation they would be willing to share and that I could use as a starting point.

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    Lianna Bodzin
    Assistant Director of Advancement Services
    Colorado School of Mines
    lbodzin@mines.edu
    ------------------------------


  • 2.  RE: Benevity, Mycause, etc - Standardization help

    Posted 17 days ago
    I do not have a one-pager for you.  Mostly because you cannot say that one size fits all.  At least not by the name of the vendor.  Further, as some, but not all, of these providers take a piece of the action before sending you a check, different organizations handle those situations differently.

    However, when I am asked for a "standard" protocol for cases like Benevity (American Online Giving Foundation) - where you receive a single check representing the net donation from both the employee and the employer - I suggest the following:
    • 100% (of the payment amount) hard/legal credit to the DAF (American Online Giving Foundation in this case)
    • 100% soft credit to the individual/employee (normally, they would have gotten hard credit for their gift and soft crest for the match - this is essentially the same)
    • Soft credit the employer for only the amount of the match (like you would have if there was no DAF)
    The same general process is the same for those institutions that want to recognize the original amounts given - before the DAF took their fee.  However, in that case, while the DAF only gets hard credit for what you received, the individual and employer could be given soft credit for the full amounts before the fee was taken.

    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: Benevity, Mycause, etc - Standardization help

    Posted 14 days ago
    Thank you for this, John.  I appreciate the help getting clarity around this.  From my on-line reading over the past couple of weeks it seems like this is creating confusion for more than just us but your description is pretty much what we're leaning towards.

    Lianna

    ------------------------------
    Lianna Bodzin
    Assistant Director of Advancement Services
    Colorado School of Mines
    lbodzin@mines.edu
    ------------------------------



  • 4.  RE: Benevity, Mycause, etc - Standardization help

    Posted 16 days ago

    American Online Giving Foundation is a DAF.

    I don't think Benevity, Network for Good, YourCause, etc. are DAFs. For example, Google, Microsoft, Exxon, Lenovo, and many more, have employer-sponsored payroll giving programs. Benevity or YourCause are more like program administrators, but the legal donors are the employee and the employer. We treat these as indirect contributions. 






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    Cameron Alzubi
    Director, Gift Administration
    Illinois Institute of Technology
    calzubi@iit.edu
    giftadmin@iit.edu
    ------------------------------



  • 5.  RE: Benevity, Mycause, etc - Standardization help

    Posted 14 days ago
    Thanks Cameron. So, to be clear, are you entering the gifts so the legal credit goes to the person, or to the company the person works for, or to the donation management company? What about the legal credit for the match?

    Based on my reading last week I got the impression that the donation management company was doing the receipting for the gift, which is in part why the argument was made that they should be treated like DAFs. Since these arrangements are becoming so common I would hope we don't have to research that every time a new one pops up.

    Lianna

    ------------------------------
    Lianna Bodzin
    Assistant Director of Advancement Services
    Colorado School of Mines
    lbodzin@mines.edu
    ------------------------------



  • 6.  RE: Benevity, Mycause, etc - Standardization help

    Posted 14 days ago
    Lianna, Benevity is not really involved.  However, that corporation uses the America Online Foundation - which is a donor-advised fund - to manage its matching processes.

    They do issue receipts to the employees and employers.  Thus, when you receive a gift from the America Online Foundation, it is a legal gift from them.

    And, yes, you almost always need to research all of these the first time they pop up as you cannot make a rule for all of these third parties.  Some are DAFs, some are pass-throughs.  When in doubt, you must do the research.

    BTW, the Blackbaud Giving Fund is a DAF, and they now handle YourCause donations.

    Some of the others Cameron mentioned are corporate foundations attached to a single company.  They also issue receipts to their employees.  But not all corporations use an attached foundation.  So you need to check.

    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: Benevity, Mycause, etc - Standardization help

    Posted 13 days ago
    John is correct (as usual; it's the Gospel According to John) about the Blackbaud Giving Fund -- which has recently taken over many of the companies previously under the YourCause umbrella. 

    It takes a bit of due diligence. If you'd like to speak over the phone and review a few scenarios, I'm happy to to speak with you. Send me a DM.
    There are instructions for calculating giving in the 990 particularly helpful when trying to consider and report on what is an indirect contribution.

    ------------------------------
    Cameron Alzubi
    Director, Gift Administration
    Illinois Institute of Technology
    calzubi@iit.edu
    giftadmin@iit.edu
    ------------------------------