Sometimes, a donor will receive something in return for a donation. The most common example of this is probably the good old PBS tote bag, a staple of on-air pledge drive weeks everywhere. Premiums can be used for tangible items, like tote bags and t-shirts, or for other items of value like event or gala tickets. Crucially, any time a donor receives ANYTHING of value in return for a donation, the tax-deductible amount of their donation will be reduced by the fair market value of whatever they receive. In Virtuous, these can be tracked by using Premiums.
Virtuous administrators can create and manage Premiums from the Settings menu in Virtuous, There, on the Data Management tab, you’ll see the option to manage premiums.
On the Premiums screen, use the Actions button in the upper right to select the “Create a Premium” option to add new Premiums. Each Premium must have a name and a unique code. The other critical piece of information is the Fair Market Value, which is used in calculating the tax-deductible amount of donations including a particular Premium.
For example, Let’s say that a donor makes a $50 Gift, and in return for that Gift they receive a coffee mug with a Fair Market Value of $10 and a t-shirt with a Fair Market Value of $7. This would make the tax-deductible amount of their Gift $33. The tax-deductible amount of any Gift in Virtuous can be seen when viewing the details of each Gift.
In addition to the Fair Market value, you may choose to enter a description of each Premium, a price, or indication of how much a donor must give to receive a particular Premium, and a cost to track your own expenses for each item. There is also an Inventory Count field, to track on-hand amounts for each item. Note that the inventory does not automatically increase or decrease as Gifts are entered; this value must either be updated manually, or it can be updated automatically by connecting with the Virtuous API.
Once you have entered all the information for your new item and clicked on Save Premium, you’ll see it in the list of Premiums. Click on the edit icon to the right of any Premium to make changes. When editing a Premium, you’ll see an additional option to deactivate any Premium. Inactive Premiums cannot be associated with any new Gifts, and will not show when entering Gifts in Virtuous.
Once you have created your Premiums, they can be added to any Gift during Gift entry. If you are importing Gifts via the csv template, look for the Premium1Code and Premium1Quantity columns to enter the Code and Quantity of any associated Premiums. If there are multiple Premiums, add them in additional columns. The template contains columns for up to two separate premiums, but by using the same pattern, up to 20 different premiums may be added to a single Gift by adding additional columns to the template.
When entering Gifts in the Gift & Contact Import tool, start typing in the Premium field to search with either a name or code. As with using the csv template, you will also need to specify a Quantity, even if only 1 Premium is included, and then either type “Enter” or hit the add button onscreen in order to add a Premium to your Gift. Once a Premium has been entered, it is possible to continue adding additional Premiums as necessary.
Once you’ve added Premiums to your Gift, you’ll be ready to continue with Gift processing. Check out the other videos in our series to learn more.