Hello everyone, I have a very urgent question and hope you can help me.
Two years ago, in FY22, we conducted a Challenge Campaign, and a generous donor pledged $75K unrestricted, to be paid over three years. The first installment of $25K was paid in FY22, leaving a current pledge balance of $50K.
Two months ago, the donor decided to support a new restricted program, sending us a check for $150K. The intention is for $50K to pay off the Campaign pledge balance from FY22, and the remaining $100K should be counted as restricted new revenue for FY24.
Our finance department told us that we can't change the pledge payment fund from unrestricted to restricted and suggested writing off $50K in unrestricted funds on their end, considering the entire pledge was initially booked as unrestricted. However, on our end we aim to show that the FY22 pledge was paid off (not written off), have the full $150K directed to the restricted fund, and at the same time align with our accounting department. Is this even possible?
I was considering applying the $50K toward the FY22 pledge, changing the fund from unrestricted to restricted, changing the Campaign designation from 2022 to 2024. This way, it will reflect a $0 pledge balance and count as new revenue for FY24 which will match our finance department.
I also want to ensure we avoid any double counting when generating pledge receivables reports. Can someone advise on the best way to record this in RE? THANK YOU in advance.
