This article will cover how to create soft credit & third party payments in your system. We'll begin with definitions of each transaction and an example of each:
Soft Credit: A soft credit is a non-monetary denotation of a contact's role in bringing in donations to your organization. We like to refer to this as a "pat on the back" to one of your contacts. For example, you may want to give soft credit to a member who solicited donations and sold tickets from friends for your annual fundraising banquet.
Third Party Payment: A third party payment is a monetary amount given by one contact to cover the cost of an obligation of another contact. An example of this would be a grandparent who pays for their grandchild's religious school tuition. This type of payment, if tax deductible, will show on the third party payor's year-end tax receipt.
To indicate a soft credit when recording a new contribution in your system, complete the following steps:
- Login to your back office
- On left-sidebar, click on "Create New" > "Contribution"
- Enter in contribution information, using the monetary giver as the primary contact.
- Under "Contribution Status", fill in the field 'Soft Credit To". Here we will give soft credit to B'nai Bedrock member "Bugs Bunny" who sold the raffle ticket to Jon Slate.
- Click Save
Now the contribution will appear on the primary giver's record, i.e. financial summary screen (Jon Slate). The soft credit will appear on Bugs Bunny's Contribution Tab under the "Soft Credit" area.
Run the "Soft Credit Report". This report shows contributions made by contacts that have been soft-credited to other contacts. To find this report, go to: Back Office > Reports > Contribution Reports > Soft Credit Report.
To record a third party payment for an obligation in your system, complete the following:
- Login to your back office
- If a pledge exists for the obligation, access the pledge tab of the beneficiary (e.g. the RS student); if recording a recurring credit card obligation in place of a pledge, access the contribution tab of the beneficiary
- Enter relevant contribution information
- Under "Extra Contribution Info", record the contact name of the Third Party Payer (e.g. if the grandmother is making a tuition payment, record the grandmother's name)
- Click Save.
Now the contribution will appear on the primary receiver's record (financial summary screen). The third party payer will see the contribution on their financial summary screen as "received". See example screenshot below. The third party payer will also see these payments reflected on their year-end tax letter.
OPTION 1) Search Builder:: If you would like to search for all third-party payments in the system, create the following search: Search / Search Builder / Contributions / Extra Info: Third Party Payer / IS NOT NULL (i.e. is not empty)
OPTION 2) Find Contributions:: If you would like to search for a particular third party payer, create the following search: Finances / Find Contributions / Extra Contribution Info: Third Party Payer / Enter in third party's "Last Name, First Name", find payer in the drop down list and click on the name / Click Search.