Soft Credit Types

The “Soft Credit Types” feature in the Finance management module of Retention CRM allows membership organizations such as Nonprofits, Associations and Chambers of Commerce to track payments where the full credit shouldn’t go to the person making the payment (membership fee, event fee, donation etc.). This is beneficial for member-based organizations because it helps them recognize different parties involved in facilitating the payment.

For instance, a healthcare organization might donate to a nursing association in honor of their employee who is a nurse. Using Soft Credit Types, the association can attribute a portion of the credit to the employee while acknowledging the organization’s contribution. This fosters better relationships with both the payer and the person they’re honoring.

How to Use “Soft Credit Types” in Association Management

Here’s a breakdown of the pre-defined Soft Credit Types in Retention CRM and how a nursing association can utilize them:

• In Honor Of / In Memory Of: Used to recognize someone special with the payment. A nursing association can use this for donations made in honor of outstanding nurses or in memory of those who passed away.
• Solicited: The default option for regular payments.
• Workplace Giving: Track donations facilitated by a donor’s workplace. Not applicable unless the association has a workplace giving program. (Disabled by default)

Additional Soft Credit Types (editable):

• Foundation Affiliate: Create this if your association has affiliated foundations.
• 3rd-party Service: Use this for donations processed through fundraising platforms.
• Donor-advised Fund: Track donations directed from a donor-advised fund.
• Matched Gift: Use this for donations that will be matched by another organization.
• Personal Campaign Page: For payments made through individual fundraising pages.
• Gift: The most basic option for regular donations.

Adding a New Soft Credit Type

• Label: “Scholarship Fund”
• Value: “scholarship_fund” (use a descriptive value)
• Description: “Donations to support the nursing association’s scholarship program”
• Order: Choose an appropriate position in the list.
• Enabled? Yes
• Default Option? No (unless this will be the most common soft credit type)

By using Soft Credit Types effectively, a nursing association can gain valuable insights into their payer network and tailor their appreciation efforts accordingly.

More Use Cases for Chambers of Commerce, Associations and Nonprofits

Tracking Donations Facilitated by Volunteers (Non-Profit)

• Soft Credit Type: “Volunteer Promoter” (Customizable)
• Example: The animal shelter creates a “Volunteer Promoter” soft credit type. Volunteers can share a unique fundraising link tied to their profile. When someone donates through that link, the donation is attributed to the donor and the volunteer who promoted it. This allows the shelter to recognize volunteers who significantly contribute to fundraising efforts and potentially incentivize them through rewards or recognition programs.

Recognizing Memorial Gift Contributors and Honoring Descended Families (Association)

• Soft Credit Type: “Family of [Last Name]” (Customizable based on Donor Information)
• Example: The historical society receives a memorial donation for a deceased historical figure. They utilize the “Family of [Last Name]” soft credit type, specifying the family name of the figure. This allows them to acknowledge both the original donor and the descendant family in their appreciation efforts. This can foster stronger relationships with families with historical significance to the community.

Tracking Sponsorships for Events and Programs (Chamber of Commerce)

• Soft Credit Type: “Event Sponsorship – [Event Name]” (Customizable based on Event)
• Example: The chamber organizes a business networking expo. They create “Event Sponsorship – Business Expo” and “Event Sponsorship – Tech Expo” soft credit types for different sponsorship tiers. When businesses sponsor events, the corresponding soft credit type is assigned to their payment. This allows the chamber to clearly differentiate sponsors between various events and tailor their thank you messages accordingly. This can strengthen relationships with key business sponsors.