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Recognition Name

Very often, the name that someone wants to be recognized as in an honor roll of donors may be different than their Individual or Household name, or Addressee name. That's why it makes sense for some organizations to create a custom field called Recognition, or Thank As, Name.

If that information will not change from gift to gift (and for most, it won't) then that field should be set up at the Contact record level.

In the odd chance that your organizations's experience is that you have a number of donors for whom that changes on a gift to gift basis, then you should set up the field on the Contribution record.level.