This article explains the difference between hard and soft credits, why soft credits matter for fundraising analysis, and how Avid processes them.
Hard credits
A hard credit is assigned directly to the donor who made the payment. For example, when a donor gives $10 through an email campaign, the CRM records a hard credit to that donor for $10.
Soft credits
A soft credit assigns value to someone other than the payment source. This commonly happens when a gift originates from a business, Donor-Advised Fund (DAF), estate, or other organization on behalf of an individual. Soft credits ensure the person who motivated the gift receives proper attribution.
Common soft credit scenarios include:
- Matching gifts: A donor gives $10, and a sponsor matches the amount. The sponsor's $10 is soft-credited to the original donor.
- Corporate or DAF gifts: The hard credit goes to the company or fund. The soft credit goes to the individual who initiated the gift.
- Household sharing: Both spouses receive credit for a gift made from a joint account.
Types of soft credits
| Type | Description |
|---|---|
| Full soft credit | The entire hard credit amount is assigned to another constituent. |
| Partial soft credit | Portions of the gift amount are distributed to one or more recipients. Any remainder goes to the hard credit constituent. |
| Duplicate soft credit | The full value is credited to multiple recipients (for example, both spouses). |
Why soft credits matter
Soft credits provide a more complete view of donor behavior. They help your organization:
- Properly categorize midlevel and major donors who give through intermediaries.
- Avoid treating a major donor as a non-donor when gifts come through a DAF.
- Segment and suppress donors based on overall activity, not just direct payment relationships.
- Inform strategies for appeals and high-urgency campaigns.
How Avid handles soft and hard credits
Avid supports both hard and soft credit models. The default behavior follows soft credits when available. This gives a fuller picture of donor contributions.
Key processing rules:
- Avid handles full, partial, and duplicate soft credits.
- When partial soft credits leave a remainder, Avid creates an additional record for the hard credit recipient with the remaining amount.
- Avid never allows the combined soft credit amount to exceed the total hard credit amount.
- Duplicate soft credits (for example, 100% to each spouse) are preserved.
If your organization requires hard credit analysis instead, contact your Account Manager to change this setting.
File upload guidance for soft credits
You can include both hard and soft credit details when uploading CRM data by file. If your organization uses partial soft credits, include separate amount fields for hard/total and soft credits on those records.
See required columns for contacts and transactions for field specifications.