This is one of the most frequent occurrences in which a change to a pledge is required, especially if batch billing is used. The method is the same for pledges with no recorded payments as it is with pledges that have payments recorded against them.
- Bring up the contact record of interest
- Click to view the contact's Financial Summary tab
- Click the “Pay Existing Balance(s) Using Installments or in Full" button
- Select which obligations to pay off by an automated, recurring credit card subscription
- The total amount due is the sum of the balance of all the obligations selected
- The last payment date is based on the due date of the last installment of the pledge as determined by the information entered when the obligation is created in the back office and as explained in the following examples:
- If a pledge was created for 12 monthly installments beginning July 1, 2014, the last payment date will be May 31, 2015 - the day before the due date of the last installment of the pledge
- If a pledge was created for 1 installment due July 1, 2014, the last payment date of the pledge will be June 30, 2014 (the day before the installment is due)
- If a donor selects to pay for both pledges as listed in examples a and b above, the last payment date for both pledges is determined according to the pledge that is due soonest, so the last payment date for both pledge will be June 30, 2014
TIP: For organizations using cash basis accounting and who want to allow donors the flexibility of paying up to the last day of the fiscal year (e.g. fiscal year starts July 1, 2014 and ends June 30, 2015), pledges should be created for one installment every 1 day dated June 30, 2015 - the last payment date will be calculated as June 29, 2015 and will allow congregants to select the highest frequency desired. Organizations using accrual basis accounting should consult with their CPA as to whether this method is acceptable given the impact it will have on financial aging.
- Select the desired payment plan (e.g. weekly, monthly, quarterly, annually, or all at once) - if a frequency is selected that will not allow for the pledge to be paid off by the due date, the system will inform you that a shorter frequency must be selected
- Based on the selections made, the system calculates the maximum number of installments allowed and shows the amount of the periodic payment
- The basic information for the contact for whom you are creating the recurring subscription will be automatically filled in by the system according to the details of the contact record
- Enter credit card details
- Click the "Confirm Contribution" button at the bottom of the screen (not shown here)
- Please click HERE for detailed explanation on what happens under the hood once the contribution is confirmed, and what you will see in different places, searches and reports in the system.