When you set a gift type directly on the source, it will only be used if the gift type rule checks there. Some gift type rules such as GMGTMT1 do not check for a gift type rule on the source.

If the gift type is not set from the source:

If the account already has a current activity
(in the Account Activities screen) for that activity_type, TA will use the gift type rule for that activity if there is one. If the gift type rule on the current activity is blank then it will use the gift type rule on the activity.
 
If the account does not have a current activity for that activity type then TA will use the gift type rule for the default activity on that activity type and if that is blank it will use the gift type rule for the activity type.

Note that the current activity is not necessarily the same as the activity on the source of the transactions you are entering.

If you have questions about this or the gift type rules used by your organization, please create a support request at www.blackbaud.com/support providing the details of the issue and referencing this solution.