Are You Still Using Pledges to Track Legacy gifts?

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While the ‘Legacy Gift’ gift type was introduced a number of years ago there are some instances where gifts in The Raiser’s Edge are still being recorded as Pledges.

As you know, a pledge is a useful way to track regular giving where you know the total amount the donor intends to pay and the time period, for example a pledge for £120 in total that will be paid at £10 a month for the next 12 months.

A legacy is money or assets that the donor intends leaving in their will. There is no fixed starting date, like there is for a pledge, which is where the gift type Legacy Gift should be used.

An example of a Legacy Gift :

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The main points on the gift are:

a)      Gift type of Legacy Gift to distinguish from other “promises” of money

b)      Gift date and amount - the date you were advised of this bequest and the value at the time.

c)      Vehicle is the manner of the legacy and the Assets button can be used to identify the bequest, in this example it is property:

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a)      Remainder value is the amount that remains outstanding once the person is deceased and the estate has been partially settled – for example there are circumstances when the solicitors for the estate will release a portion of money to the beneficiaries.

b)      NPV (net present value) tracks how much the gift is now worth as the value of property, stock and so on can change over time

c)       Gift has been realised is used to confirm when all money for the legacy has been received.

A couple of things to note about Legacy Gifts:

  • By default, the gift type Legacy Gift is not included in the “standard” Financial Reports like Gift Detail and Summary report, because there is no associated time scale and therefore would not normally be included.
  • The Legacy Gift Report in the Reports, Financial Reports section is available to review the current status of your legacies
  • Setting up with a separate gift type of Legacy Gift lets you take this into account in Queries and Mailings.

How to record money received as the result of a Legacy

When the donor passes away and you receive money as a result of the legacy you would add a Cash gift, as this is money received.

  • When adding the gift, select Gift from the menu and Apply To… Legacy Gift from the drop down menu.

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  • As this is a Cash gift, it will be included in your Financial Reports, just like any other cash gift.
  • When the gift is applied to the legacy it will then show on the Realised Revenue tab of the Legacy Gift.
  • More than one cash gift can be applied to a Legacy as money may be received at different stages of the deceased estate being wrapped up.
  • When all monies has been received tick the ‘Gift has been realised’ box on the Legacy Gift to confirm no further gifts expected.

Related Resources:

See the Legacies Guide for more information.
News Raiser's Edge® Blog 06/17/2014 6:00am EDT

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