Partial Pledge Write Off / Gift Adjustment after payment received

Cindy Fields

I have a fully paid pledge in a closed month where the donor has reduced their pledge commitment and will be refunded the difference since payment in full has been received.  What is the best practice to handle this in Raiser's Edge?

~Cindy Fields, St. Charles Foundation

JoAnn Strommen

I would do gift adjustments to the pledge and the payment. How the adjustments hit your finance dept will need to be discussed with them. They may want the adjustment to hit closed month and rerun their reports especially if it's significant. Or they may just say let the adjustment hit this month and manually make the adjustment. I assume that you would be making detailed notes in both adjustment records as to why and what is being done.

Crystal Bruce

Discussion moved to Raiser's Edge Community. Thanks!

Austen Brown

Hi Cindy Fields‍ - Like JoAnn‍ has mentioned already, it is ultimately up to your Finance Department on how they want to handle this.  Based on how my organization handles pledges and closed months/years, this is my recommendation: 

• Adjust the pledge payment to the amount less the refund, with the adjustment date in the current month (as this is when the refund will be processed).  
• Write Off the remaining portion of the pledge as the constituent has let you know they want to reduce their pledge commitment (i.e. they are unable to fulfill the original pledge amount).