Glossary
Donor Management

Pledge

By: Alec Hollingsworth
Updated:  
July 2, 2025

Definition:

A pledge is a donor’s formal promise to contribute a specific amount to a nonprofit, often fulfilled at a future date or in installments.
A pledge is a donor’s formal promise or commitment to contribute a specific amount of money or other resources to a nonprofit organization, typically over a set period. Unlike immediate donations, pledges are often paid in installments or at a future date. Nonprofits record pledges as receivables, tracking them separately from received funds. Pledges can be conditional or unconditional, depending on whether certain requirements must be met before the funds are transferred. Managing pledges effectively helps organizations forecast future income, plan projects, and build stronger donor relationships. Accurate pledge tracking is crucial for financial reporting and donor stewardship, as it ensures transparency and accountability in fundraising efforts.

Key Takeaways

  • Pledges are formal promises of future donations.
  • They can be paid in installments or as a lump sum.
  • Tracking pledges helps organizations forecast revenue.
  • Pledges can be conditional or unconditional.
  • Effective management strengthens donor relationships.

Why It Matters

Pledges help nonprofits forecast revenue and plan effectively for upcoming programs and initiatives.

Real World Example

A local animal shelter launches a capital campaign to build a new facility. Several community members make pledges, committing to donate $5,000 each over the next two years. The shelter records these pledges and sends quarterly reminders to donors about their upcoming installments. This reliable pledge tracking allows the shelter to plan construction phases with confidence, knowing when funds will be received, and helps maintain strong communication and gratitude with supporters throughout the campaign.

How Keela Helps

Keela’s donor management system enables organizations to record, track, and manage pledges efficiently. With Keela, users can monitor outstanding pledge balances, send reminders, and generate reports on pledged revenue, ensuring a seamless stewardship process and accurate accounting.

Frequently Asked Questions

What is the difference between a pledge and a donation?

A donation is an immediate gift, while a pledge is a promise to donate in the future, often fulfilled in installments.

How do nonprofits track pledges?

Nonprofits use donor management software like Keela to record, monitor, and send reminders about outstanding pledges.

Are pledges legally binding?

Some pledges are legally binding, especially if documented in writing, but enforceability can vary by jurisdiction and the pledge terms.

Can a pledge be conditional?

Yes, a pledge can be conditional, requiring specific criteria or events to be met before the donation is made.

Why is tracking pledges important for nonprofits?

Tracking pledges helps organizations forecast future revenue, plan programs, and maintain strong relationships with donors.

Related Terms

A/B Test
Accessibility Compliance
Acknowledgement Letter
Address Verification
Affiliation
Archiving Historical Donor Data

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