Glossary
Donor Management

Soft Credit Donations

By: Alec Hollingsworth
Updated:  
August 6, 2025

Definition:

A soft credit donation is when someone is recognized for facilitating a gift, though they are not the legal donor.
Soft credit donations refer to gifts that are credited to an individual or organization for recognition purposes, even though they are not the legal donor. This usually happens when someone influences or facilitates a donation but does not actually make the financial contribution themselves. For example, if a board member convinces their employer to make a donation, the employer is the legal donor, but the board member receives a soft credit. Soft credits help nonprofits track and acknowledge those who play a significant role in fundraising, even if they do not give funds directly.

Key Takeaways

  • Soft credits recognize those influencing donations.
  • They differ from hard credits, which are for legal donors.
  • Tracking soft credits helps build strong donor relationships.
  • Soft credits are essential for comprehensive fundraising reporting.

Why It Matters

Soft credits recognize and encourage fundraising efforts beyond direct giving.

Real World Example

Imagine a nonprofit is hosting a gala and a board member persuades their company to sponsor the event with a $10,000 donation. The company is the legal donor and receives the tax receipt, but the board member is given a soft credit for the amount in the nonprofit's records. This allows the organization to acknowledge and thank the board member for their pivotal role, motivate them to continue advocating for the cause, and track their overall influence on fundraising outcomes, even though they did not personally give the funds.

Frequently Asked Questions

What is a soft credit donation?

A soft credit donation is when recognition is given to someone who facilitated or influenced a gift, even though they are not the legal donor.

How is a soft credit different from a hard credit?

A hard credit is given to the legal donor who provides the funds, while a soft credit recognizes those who encouraged or arranged the donation.

Why should nonprofits track soft credits?

Tracking soft credits helps nonprofits acknowledge key supporters and understand the full impact of their fundraising efforts.

Does a soft credit donor get a tax receipt?

No, only the legal donor (hard credit) receives a tax receipt. The soft credit is for recognition purposes only.

Can Keela track soft credits?

Yes, Keela allows organizations to assign and report on soft credits, providing a full view of supporter impact.

Related Terms

Accessibility Compliance
Automation Trigger in a Nonprofit CRM
Average Gift Size
Board Member Profile
Bounce Rate
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