How to Log a Pledge and Track Pledge Payments

Pledges are promised donations. This guide covers logging pledges and tracking payments against the pledge amount until it's fully satisfied.

What is a Pledge?

A Pledge action records a donor's promise to give a certain amount over time, typically:

• Multi-installment gifts (e.g., $10k per year for 3 years)
• Bequests or deferred gifts
• Capital campaign commitments
• Pledges with specific payment schedules

Pledge vs. Donation

Key difference:

Donation: Money has been received and deposited.

Pledge: Promise to give; payment(s) still expected.

Step 1: Click on the “Action +” button

1. Click 'Add Manual Action'.
2. Choose 'Donation Made' from Action Type.

Pledge form with payment schedule and total pledge amount

Step 2: Enter Pledge Information

Constituent: The person making the pledge.

Total Pledge Amount: Full amount promised (e.g., $30,000).

Date Pledged: When did the donor make the commitment?

Step 3: Enter Payment Schedule

Most pledge systems allow you to define the payment schedule:

• Annual installments: $10,000/year for 3 years
• Custom schedule: $5k Year 1, $10k Year 2, $15k Year 3
• Quarterly or monthly payments

Payment schedule showing installments and due dates

1. Click 'Advanced (Pledge Schedule)'.
2. Select Payment Schedule.
3. Click “Specify Each Payment Amount and Frequency”
4. Enter Frequency and first Payment Amount.
5. Click “Re-Generate Payment Schedule”.
6. System calculates total to ensure it matches pledge amount.

Step 4: Save the Pledge

1. Review the entire pledge and schedule.
2. Click 'Save'.
3. Pledge is logged in the system.
4. Payment schedule is now tracked.

Recording a Payment

When the donor makes a payment:

1. Go to the Donation Action of the correct date.
2. Click “Unverified”.
3. Then the Donation Action will change to “Verified” (which means it has been received).

• Tip 1: Always log the pledge before receiving payments.
• Tip 2: Set reminders for upcoming pledge payment due dates.
• Tip 3: Use pledge tracking to identify major donor relationships.
• Tip 4: For capital campaigns, pledges are often as important as gifts.
• Tip 5: Reconcile pledge records with accounting records monthly.