What is an External Organization?
An External Organization, refers to an account that is distinct from individual donors and operates in a manner similar to a trust. This type of entity acts as an intermediary or steward of funds, managing and distributing them on behalf of the donor, but the donation itself originates from this separate entity.
Examples of external organizations include:
- Churches
- Non-Profits
- Trusts
- Foundations
- Corporations
Tithely Tip
This is feature is only available to Beta users at the moment.
How to Create an External Organization
- From the Giving tab, select Admin Batch Giving.
- At the top-right hand corner select Add New External Organization.
- The fields that are required to enter are the External Organization's name, and the type of organization it is, such as a church, non-profit, corporation, foundation, trust or other.
- While other fields like Address and Primary Contact information are not required, we encourage you to fill out this information to the best of your ability.
- Create External Organization.
For more information on processing donations associated with your external organization, see our resource on Admin Batch Giving: How to Record and Process Donations.
What is a Pass Through Donation in External Organizations?
A pass-through donation refers to a donation made to a charitable organization through an intermediary entity or conduit, rather than directly by the individual donor. The intermediary (or external organization) serves as a conduit, "passing through" the donation to the final recipient charity. Common intermediaries include IRA Contributions (Qualified Charitable Distributions - QCDs), Donor-Advised Funds (DAFs), private foundations, trusts, or third-party platforms that facilitate charitable giving.
When Recording and Processing Donations donations in Admin Batch Giving, you will have the option to select whether the donation is a pass-through donation. You will then want to select the type of Conduit Giving this is, such as an IRA, a DAF or other conduit.
Note that you will still need to associate the transaction to a donor as shown below, even if selecting to be given by an External Organization. If you are unable to associate this donation to a donor, we recommend selecting the option below for Unable to Choose Donor, which will ensure this becomes an Unmatched Donation that can be associated at a later time.
Additional Notes
- Once an External Organization has been created, it cannot be deleted.
- You can edit the information stored under an External Organization by clicking on an organization in your list and updating the details on the right-hand pane.