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Can establishing a CGA satisfy a pledge?

  • 1.  Can establishing a CGA satisfy a pledge?

    Posted 05-20-2022 07:58 AM
    This is a new situation for me, our MGO had a donor establish a CGA, for which they are the beneficiary, to satisfy an existing pledge? Something about this doesn't seem right to me, is this a generally accepted practice?

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    Claudia Sauers
    Director of Development Operations
    Asbury Foundation
    csauers@feedingpa.org
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  • 2.  RE: Can establishing a CGA satisfy a pledge?

    Posted 05-20-2022 08:04 AM
    If the pledge was for cash to spend immediately on a current program or building, no.  You can forgive the pledge but a CGA will not give you money to spend for years.

    If, though, the pledge was a pledge to create a CGA, then yes!

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



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  • 3.  RE: Can establishing a CGA satisfy a pledge?

    Posted 05-20-2022 08:10 AM

    In our system a CGA is a deferred gift. A deferred gift could only pay on a deferred gift pledge. In your scenario, we would write-off the standard pledge and book a deferred gift outright. They are different flavors of activity.

     

     

    Aaron Forrest CPA

    Senior Director Gift and Donor Services

    University of Rochester Office of Advancement

    585.275.2799 | aaron.forrest@rochester.edu

     




    Original Message


  • 4.  RE: Can establishing a CGA satisfy a pledge?

    Posted 05-20-2022 08:20 AM
    Here's an issue I have. Let's say the original pledge was for $100,000 and was booked in a previous fiscal year. I would adjust that "regular" pledge to a CGA pledge, keeping the same pledge date, so that the $100,000 CGA doesn't appear as a new $100,000 commitment this fiscal year.

    You made a comment about beneficiary. Are you saying the donor receives the remainder after they die and not you? If so, I'd say that's an issue.

    Rob Saunders




    Original Message


  • 5.  RE: Can establishing a CGA satisfy a pledge?

    Posted 05-20-2022 08:24 AM
    If the donor is the beneficiary, then there really isn't any charitable portion of this gift.   If eventually the remainder of a CGA pays the pledge, I would just wait until that event to apply the cash to that pledge.   I'd stay away from booking the CGA based on the beneficiary designation

    Tom

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    Thomas Chaves
    Associate VP for Advancement Operations
    Office of Advancement
    Saint Joseph's University
    5600 City Avenue, Philadelphia, PA 19131
    O: 610-660-1255 | M: 610-316-6541 | tchaves@sju.edu
    SJU.edu



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