Terms and calculations relating to reports in ABE and Advancement Resources.
Accumulated market appreciation/depreciation
Increase or decrease in earnings of the book value.
Cash to be endowed
Asset account 1010, 20-1010 or 30-1010. Money in this account is donations intended to increase the value of the endowment and is held in the account until the quarter is closed. They are then transferred to the Fund Book Value account, 1150.
Date entered
The date the gift was processed by WFAA Gift Processing staff. The date the gift was processed by the WFAA gift processing staff.
Endowment book value
The total of all gifts and reinvested income received since the fund was established. The principal cannot be spent unless specifically allowed by the donor in the memorandum of agreement.
Estimated annual income (EAI)
An estimate of the interest expected to be accrued on the endowment in the next 12 months, based on the previous quarter’s interest payments made. The EAI is only an estimate and cannot be guaranteed by WFAA.
Fixed term pledge
A pledge made with a payment schedule and anticipated end date.
Matching gift claim
A pledge created when a donor indicates his or her company or corporation will match his or her gift. The matching claim is created on the company or corporation’s record and linked to the donor’s revenue.
Net asset class
References the distinction between Permanently Restricted, Temporarily Restricted and Temporarily Unrestricted.
Payroll deduction
A pledge made for which payments are made from the donor’s payroll check.
Permanently restricted
Net Asset Class with prefix ‘30’. The endowment fund has a portion of the funds that are required to be retained permanently either by explicit donor stipulation or by State Prudent Management of Institutional Funds Act (SPMIFA).
Recapture Fee
Was deducted from the Market Value at the pool level in the past and was not viewable in your individual funds. Going forward, we have implemented new procedures to make this fee more transparent, now showing the exact fee at the individual fund level. This fee is also a direct deduction from the 1160 Market Value Account.
Recognition credits
Recognition credits represent the way WFAA credits or recognizes constituents for one particular revenue transaction. These are mainly used to calculate an individual constituent's eligibility for recognition programs, such as the Bascom Hill or Middleton Societies.
In ABE, multiple recognition credits can be applied to a given revenue transaction.
At go-live, there will be five recognition credit types in ABE:
- Self - applied to the constituent making a gift on his or her own behalf or by an organization on its behalf. The amount of recognition applied is equal to the payment/revenue amount. Only one Self Recognition Credit may be applied to a given revenue transaction.
- Spouse - applied to the spouse only when a “joint gift” is made and the spousal relationship or life partner relationship is indicated. Only individuals can receive this type of Recognition Credit. The amount of recognition credit applied is equal to the payment/revenue amount. Only one Spouse Recognition Credit may be applied to a given revenue transaction.
- Donor directed - applied to an organization when an individual or company makes a gift through an organization. Usually only found on an organization’s record. The amount of recognition credit applied is equal to the payment/revenue amount. Only one Donor Directed Recognition Credit may be applied to a given revenue transaction.
- Matching company - applied to an organization when an individual’s gift is matched. Only found on an organization’s record. The amount of recognition credit applied is equal to the payment/revenue amount. Only one Matching Company recognition credit may be applied to a given revenue transaction. Acknowledgement letters will be sent to soft credit recipients to notify them that the match has been received.
- Soft - applied to both individuals and organizations, mainly in conjunction with Donor Directed and Matching Company recognition credits. The amount of recognition credit applied is equal to the payment/revenue amount. One or more Soft Recognition Credits may be applied to a given revenue transaction. Acknowledgement letters will be sent to soft credit recipients to notify them that a gift has been received on their behalf.
Examples:
| EX1 |
Mary and John Smith make a joint gift of $100. The revenue/payment will be recorded on one of the constituent records in the household (Mary, in this case) and $100 in recognition credit will be given to each. The recording of this donation is as follows: Revenue: Mary Smith ($100) Recognition Credit:
|
| EX2 |
Gary Johnson owns ABC Company and makes a gift of $5,000 through the company. The revenue/payment will be recorded on ABC Company's record. $5000 recognition will be given to both ABC Company and Gary. The recording of this donation is as follows: Revenue: ABC Company ($5,000) Recognition Credit:
If his spouse is Lisa Johnson, and they make a joint gift, the recording is identical as the above, except Lisa is credited with a soft (not spouse) recognition credit. |
| EX3 |
Jane Williams works for IBM and makes a $500 donation, informing us that IBM will match this gift 2:1. The recording of this donation is as follows: Revenue:
Recognition Credit:
|
| EX4 |
Jim and Sue Anderson make a $1 million donation via the Anderson Family Foundation. The revenue/payment will be recorded on the Anderson Family Foundation's record. The recording of this donation is as follows: Revenue: ($1 million, Anderson Family Foundation) Recognition Credit:
|
| EX5 |
Jenny and Bob Richards make a $10,000 donation through a fund they hold with Fidelity Charitable. The revenue/payment will be recorded on Fidelity Charitable's record. The recording of this donation is as follows: Revenue:: Fidelity Charitable ($10,000) Recognition Credit:
|
General guidelines:
- Revenue can exist on only one constituent record per transaction.
- Individuals can only have self, spouse or soft recognition credits.
- Organizations will usually only have Self, Donor Directed or Matching Company Recognition Credits. In some cases, organizations can have Soft Recognition Credit. For example, BMO Harris Bank in Milwaukee makes a gift to Athletics but the payment is made through BMO Harris Bank NA in Chicago. BMO Harris in Milwaukee receives Soft Recognition Credit and BMO Harris Chicago receives Donor Directed Recognition Credit.
Recurring gift
A donor has committed to making multiple gifts with no end date and sometimes no set amount.
Revenue
- Revenue represents the actual payment (cash, check, stock, etc) made on a donation, pledge, matching gift, etc.
- In ABE, revenue will be applied to only one constituent (individual or organization) per transaction.
- See examples in the definition of Recognition Credits
Spendable cash
Asset account 10-1000, 20-1000 or 30-1000. Money within the account can be used for the intended purposes of the fund at any time by authorized users. Also Cash – ST Spendable
Spend Plan Cash
Posted to the 1005 (Spendable Endowment Income) account in all 132 funds. This posting represents quarterly income based on our Board Approved WFAA Spend Plan policy and can now be viewed as a direct deduction from the 1160 Market Value Account.
Telefund pledges
A pledge generated by the Wisconsin Telefund student calling program. The majority of these pledges are fulfilled in one payment and the payment schedule is contained within one calendar year.
Temporarily restricted
Net Asset Class with prefix ‘20’. The money within in a temporarily restricted NAC can be spent. The portion of the endowment fund subject to a time restriction under SPMIFA.
Total endowment market value
A sum of the Endowment Book Value and the Accumulated Market Appreciation/Depreciation.
Total household giving
In future state, household giving will be calculated by taking all recognition credit for both members of the household and combining them. For gifts that were given by the household, each member of the household will have full recognition credit. In those cases, the recognition credit will be de-duplicated using the revenue transaction ID. This will allow for more accurate reporting and will additionally ensure that when household relationships are dissolved, each member maintains their recognition credit (and prospect rating, etc.).
Transaction Date
The date the gift was received and processed by US bank.
Tribute
A gift given by an individual to show gratitude, respect or admiration. In ABE, the tribute types are: In Honor of, In Memory of, Pet Memorial, In Celebration of and In Support of. Multiple tributes may be associated with a single gift.
Unrestricted
Net Asset Class with prefix ‘10’. The money within an unrestricted NAC can be spent down to zero.
It would be awesome if you could add examples to these terms of where to look for them in ABE record/how to interpret them, like for pledges and recurring gifts, for example.