Salesforce Certified Nonprofit Cloud Consultant

Which donation tracking method should be used for cash accounting?

1. Standard Salesforce Opportunity

2. Fixed-Length Recurring Donation

3. Monthly Recurring Donation

4. One-time Donation Record

The correct answer is: Fixed-Length Recurring Donation

The appropriate donation tracking method for cash accounting is the Fixed-Length Recurring Donation. This approach allows organizations to manage and track donations that are expected to occur at regular intervals over a specified period of time. In cash accounting, income is recorded when it is received, making this method particularly useful as it aligns with tracking recurring donations that reflect actual cash flows into the organization. The Fixed-Length Recurring Donation provides a structured way to capture the commitment of donors who provide donations over a fixed term, such as annually or semi-annually, while ensuring that each contribution is documented as it is received. This aligns well with the cash accounting principle, which focuses on the timing of cash inflows rather than the accrual of revenue. Other methods, such as the Standard Salesforce Opportunity or the One-time Donation Record, may not fully support the ongoing nature of cash flow management related to recurring contributions in a structured manner suitable for cash accounting. Monthly Recurring Donations, while they may seem similar, do not offer the fixed-length structure that can be essential for planning and cash flow forecasting in a straightforward cash accounting context.