Glossary
Donor Management

Soft Credit

By: Alec Hollingsworth
Updated:  
July 2, 2025

Definition:

A soft credit recognizes a person's influence on a donation, even when they are not the direct financial contributor.
A soft credit is a recognition of a donor’s indirect contribution, typically when someone gives through a third party, such as a donor-advised fund or in honor/memory of another individual. Unlike a hard credit, which is attributed to the person or entity making the financial contribution, a soft credit acknowledges the influence or encouragement of another party in facilitating the donation. Soft credits are crucial in donor management systems because they allow organizations to track the influence of advocates, board members, or supporters who help bring in donations, even if they are not the direct source of the funds.

Key Takeaways

  • Soft credits recognize indirect donor influence.
  • They help track advocates who facilitate donations.
  • Essential for accurate donor stewardship.
  • Keela allows easy assignment of soft credits.

Why It Matters

Soft credits help nonprofits recognize and steward donors who influence gifts, strengthening donor relationships.

Real World Example

Imagine Sarah donates $1,000 to a nonprofit in honor of her friend Emily’s birthday. The nonprofit gives Sarah a hard credit for the donation but also assigns a soft credit to Emily, acknowledging her role in inspiring the gift. This way, Emily is recognized in the organization’s records for her influence, even though she did not make the payment herself. Over time, tracking soft credits allows the nonprofit to see which supporters are effective at encouraging others to give, helping guide stewardship and engagement strategies.

How Keela Helps

In Keela, you can assign soft credits to contacts, ensuring that advocates and influencers are properly acknowledged for their roles in securing donations. This feature supports accurate donor stewardship and comprehensive reporting, making it easy to track both hard and soft credits within your fundraising campaigns.

Frequently Asked Questions

What is a soft credit?

A soft credit is recognition given to an individual who influenced or facilitated a donation, but did not make the direct contribution themselves.

How is a soft credit different from a hard credit?

A hard credit goes to the actual donor who made the payment, while a soft credit acknowledges someone who inspired or directed the donation.

Why should nonprofits track soft credits?

Tracking soft credits helps nonprofits recognize key supporters and advocates who help bring in gifts, strengthening donor relationships and stewardship.

Does Keela support soft credit tracking?

Yes, Keela allows nonprofits to assign and report on soft credits, making it easy to acknowledge all contributors to fundraising success.

Related Terms

A/B Test
Accessibility Compliance
Acknowledgement Letter
Address Verification
Affiliation
Archiving Historical Donor Data

Are You Ready to Grow Faster and Raise More?

TALK TO US
EXPLORE KEELA'S PLANS