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[ASK AN EXPERT] How Do I Credit DAF Gifts In My CRM, And Also Recognize These Gifts?
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Our Ask An Expert series features real questions answered by Claire Axelrad, J.D., CFRE, our very own Fundraising Coach, also known as Charity Clairity. Today’s question comes from a nonprofit employee who wants advice on how to recognize and credit donor-advised fund gifts in their CRM:
Dear Charity Clairity,
I have a nuanced question on how to record DAF gifts in my CRM. I think I give a hard credit to the sponsor and a soft credit to the individual? How should I record if (1) check says Schwab Charitable, (2) accompanying letter says “this grant was made on behalf of Better Get to Giving at Schwab Charitable,” and (3) the grant was recommended by the Smith family. The Smith family should be soft credited and acknowledged. But do I enter Schwab Charitable as the donor, or is Better Get to Giving at Schwab Charitable the donor? Is it the name of the bank, or the name of the fund? Just trying to keep our accountant happy by knowing WHERE the money came from, and the Dev team happy by knowing WHO to thank.
— Questioning credit intensity
Dear Questioning,
I’ve answered a similar question previously (see here), but you do in fact bring up a nuance.
First: What I would do is enter the name of the “bank” (or it could be a community foundation, individual charity that offers donor-advised funds, or any other DAF sponsor) as the hard credit donor. This entity is the place where the donor’s DAF funds are invested, and they are the ones who have the final say over where the money is distributed per the donor’s nonbinding recommendation.
They do not necessarily need to be publicly recognized, but you should definitely send them a prompt acknowledgement thanking them for making the DAF grant. My advice is to recognize them as described below in “Third.”
Second: The next step is to ask the donor how they would like to be recognized in whatever places you publish donor listings. Many DAFs already ask donors this question on the interface where they make their grant recommendations. So, you’ll often already know if they want to be listed as “The Smith Family” or the “Better Get to Giving Donor Advised Fund of Schwab Charitable,” or even “Joe and Mary Smith.”
Third: Regarding donor recognition, some organizations do a double listing. First there is a corporate listing, determined by cumulating all gifts from a single sponsor (e.g. Schwab Charitable) and then listing Schwab as a single donor at whatever level the component DAF gifts from different donors add up to. Simultaneously, there is an individual listing for the Smith Family (or however they’ve let you know they would like to be listed) at the amount/level of their individual gift.
If you’re unclear from the DAF paperwork you receive about how the individuals making the grant recommendation would like to be recognized, simply ask them! Do this in whatever way you think they’re most likely to respond (e.g., phone call, email or text).
Make sense?
Hoping your question has been answered – in every nuance!
— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Questioning” did.)
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