In 'Donor Management', the best way to track your supporters who directly influenced a donation or secured a gift for your organization is through a “soft credit.”
Soft credits can give you and your organization more insight into a donation. You can then use that information to pinpoint key individuals you can leverage for support in the future – and can help you make sure that the individuals who secured a gift on your behalf are properly thanked for their indirect contribution.
Here are some examples of how you can use soft credit:
give your donors credit for contributions they made through a different charitable organization, such as a local foundation
give an employee credit for a matching gift from their employer
give board members credit for donations that they directly solicited
give a business owner credit for a donation made by their company
give a peer-to-peer fundraiser credit for donations they brought in through their campaign page
give a committee member credit for an event sponsorship gift
give multiple members of the same household and family credit for the same donation
give supporters credit for donations brought in through shared posts and other social media
1) Do we need to send a tax receipt for a soft-credited donation?
No. Soft credits are not tax deductible - so, you do not need to send a tax receipt. Our automated system will not send one out either. However, we recommend you send an acknowledgment to recognize the soft-credited donor who played a role in your organization receiving a gift or donation.
2) How can I track a donor's soft credits?
When a soft credit is added for a donor, you will notice the stats next to the graph in their donor profile have been updated to include 'Soft Credits (YTD)'. This total lets you easily view how your contact has helped bring in donations from other contributors.
3) Do soft credits impact any other totals for each donor?
No. Soft credits do not impact other totals. However, they do affect a donor’s listed status (such as lapsed, active, etc.).
They also will not be listed as a donation when you send donation summary-related communications – which is another reason we recommend you send an acknowledgment to those soft-credited donors instead!
4) Can soft credits be applied to a donor's pledge?
Not quite. A pledge should reflect the amount a donor intends to contribute to your organization. The amount they have given directly is the only amount that can be applied to a pledge – so, linking a soft credit to a pledge is not an option within 'Donor Management'.
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