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Article : Income Categorization & Classification

Summary: Gnosis has a number of options for classifying income for reporting and posting to accounting.  This article describes the income classification methods available.
Applies to: Gnosis Pro - All Versions
Details:

Gnosis Income Categorizations & Classifications

Introduction

Gnosis has a number of ways to classify income for reporting and accopunting purposes.  Each of the acailable classification types are listed below with a description of their purpose.  You may also download a PDF Reference Document describing these classifications.


Campaign

A campaign generally records a certain fundraising event, either a one-off or possibly an annually recurring event.  For instance, 'Year-End Appeal' could be a 'Campaign'. You would probably not add the actual year however as the date of the donation would provide that information and then the campaign name would be used each year that the campaign runs.
 

Source

Typically, the source refers to a location or partner organization that generates donations revenue. This may be something like 'Rotary Club', or, 'Downtown Donations Box' - basically, any location or organization that consistently works to generate donations on behalf of the organization.

Account

The account code primarily serves to classify the donation income into an appropriate account within your accounting system.  Given that accounting codes for income generally exist to classify types of income received, this can also be a very useful field to use for reporting and analysis within Gnosis.

Solicitation Code

Solicitation code is a type of classification that has been used in fundraising for a long time.  It generally is used to classify the type of 'ask' - i.e.: Email campaign, TV campaign, Letter Drop, Phone call solicitation, Street can drive. The code should generally be used to analyze the effectiveness of different ask types so that the organization can work out how to maximize income for effort.

Purpose (Contributions Only - ie: not pledge, subscription or event income)

Purpose is generally designated for describing the reason for the donor donating - over and above any of the foregoing categories.  For example, a donor may give in memory of her husband - 'in memory of' would be the purpose whereas the foregoing categories would describe the donation in terms off campaign, location and type of ask.  The Purpose category in Gnosis is formatted to be most useful for automatically generating very personalized responses in acknowledgement letters as it lets you construct the name of the person in whose name the donation is given and an override description to create a freeform response to the purpose text.


Purpose Occasion (Contributions Only - ie: not pledge, subscription or event income)

Whereas the Purpose describes the motivation for donating (in honor of Jane Doe), the Purpose Occasion optionally describes the reason for donating.  This typically contains terms such as 'on their anniversary' or 'on their birthday'.  The Purpose and Purpose Occasion may be used in conjunction to fully describe the nature of the donation and therefore assist with automation of acknowledgement letters to the donor.  A description override field may be used on an individual donation basis to provide acknowledgement content instead of the Purpose and Purpose Occasion fields.

See also: Download a PDF Reference Document describing these classifications

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