We are reviewing how we record Charitable Gift Annuities (CGAs) in Raiser's Edge NXT and would love to hear how other organizations are handling this.
Based on guidance we've received, the recommended approach is:
- Enter the planned gift using the Planned Gift gift type.
- Treat the Planned Gift similarly to a pledge and record the establishment of the annuity obligation.
- When payments are received, enter them as Cash gifts against the Planned Gift.
Our challenge is that once the cash is received, RE NXT does not appear to have a native way to distinguish whether that cash transaction represents:
- Revenue to the organization, or
- A reduction of the annuity liability.
The recommendation we've heard is to use different Gift Subtypes and leverage those subtypes for GL distribution mapping into Financial Edge NXT. While that may solve the accounting side, it feels like a user-defined workaround rather than something RE NXT natively understands.
For example:
- Donor giving summaries and other RE NXT calculations do not appear to consider Gift Subtype when determining giving totals.
- Cash gifts that are actually liability-related transactions can end up looking the same as true revenue gifts from a donor history perspective.
- Reporting becomes dependent on users consistently applying subtypes.
I'm curious how others have addressed this.
Questions for the community:
- How are you recording Charitable Gift Annuity payments in RE NXT?
- Do you use Gift Subtypes to distinguish revenue vs. liability activity?
- How do you ensure donor giving reports and summaries are not overstating charitable revenue?
- If you integrate with FE NXT, how are you handling the GL distributions?
- Have you found an alternative approach that better preserves both fundraising and accounting accuracy?
I'd appreciate hearing how other organizations, especially those with active planned giving programs, have structured this process and any lessons learned.
Thanks in advance!
