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I have just submitted an issue for the core team to develop the "Existing Contact" functionality to behave more like it does in Webform where, if a contact is not found, an "Add New" option is selectable. My org will pay for this development but we are wondering if other's might want to chip in also.

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It does provide an option to include a profile for creating on a contact reference field.

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    Thanks... Yes, after looking at this more I think I will try to use it as it already is. Apr 19 at 16:22

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