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Wire (or other external) Fees

Kierstin Sykes

Hi, can anyone share how they have captured/reflected wire fees or other fees imposed by an external entity in CRM? For example, a $500k gift net of $25 wire fee, a deposit of $499,975. We would record revenue of $500k, but want a way to show there was a fee taken off by the bank so the accounting team can reconcile to the bank. We also have some other pass through entities that take fees off before they send us the net. We want to recognize our donors at the full gift amount and then show the fee as a reduction.

Thanks in advance!

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Comments

Orion Ranesteer

If someone knows the answer, let me know! It would also be useful for me.

Jodie Ralston

@Kierstin Sykes When the fee is taken by Benevity or the like on wires, we record the net as the legal revenue amount--this is what passes to financials--and then the full amount as recognition credit. Our credit card processor also takes fees before we get the deposit. On this, however, we give full credit to the donor and financials, and eat the fees as part of our budget. If a donor's bank imposes a fee, legal and recognition credit is the net amount.

Kierstin Sykes

@Jodie Ralston we are considering recording benevity at net. We also gross up credit cards, but the fees are taken separately so we don't need a home for those. It is really the wire gifts that we want to record at gross and reflect the fee somewhere in CRM. Our logic is that its similar to credit card where the donor relinquished the full amount and a bank took a fee.

Erika Layfield

@Jodie Ralston
we do the same thing. Recognition is for the full amount and actual amount is for net.

Petra Hall

@Kierstin Sykes

Hi! In Raiser's Edge we record donations made through third parties at the full amount, and add an attribute to track the third party fee. At posting, we pull a query of those attributes, and Finance manually adds the third party fee to the posting journal.

Kierstin Sykes

@Petra Hall

That's helpful thank you. We are looking at using revenue attributes as well.