Pledge Acknowledgement Letter

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Peter Mckay
Peter Mckay ✭
Ancient Membership Facilitator 1
in Blackbaud Raiser's Edge NXT®: General Discussion

This is kind of a naive question, but when you get a hard, written, signed pledge, do you acknowledge the full amount, as you would a cash gift, with 501c3  language?  Since Finance does consider a written pledge to be revenue, this seems like the right way to do it.  Just checking.

 Thanks. 

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  • Melissa Graves 2
    Melissa Graves 2 ✭
    Ancient Membership Facilitator 2
    Peter Mckay:

    This is kind of a naive question, but when you get a hard, written, signed pledge, do you acknowledge the full amount, as you would a cash gift, with 501c3  language?  Since Finance does consider a written pledge to be revenue, this seems like the right way to do it.  Just checking.

     Thanks. 

    Not ever.

    The IRS wants you ONLY receipting CASH in hand received. The Finanial revenue counting and IRS contribution tax deductions are not related or done the same way.

    If you get a pledge and no payment yet, you can send a thank you letter but it should not be a receipt.

    If you get a pledge and a partial payment your receipt should be for the amount received but it can include the overall pledge amount and pledge balance for reference only.

  • JoAnn Strommen
    JoAnn Strommen ✭✭✭✭✭
    Ancient Membership Facilitator 4 Name Dropper Photogenic
    Peter Mckay:

    This is kind of a naive question, but when you get a hard, written, signed pledge, do you acknowledge the full amount, as you would a cash gift, with 501c3  language?  Since Finance does consider a written pledge to be revenue, this seems like the right way to do it.  Just checking.

     Thanks. 

    We send the donor at "thank you for your pledge" letter with what we have recorded for payment schedule.  We do not put any statement about tax deduction.501c3 as there is no cash received yet for them to deduct.  Finance considering it revenue and the donor getting a tax deduction for it are two different things to us.  Our donors receive a receipt with tax deduction statement for each payment we receive. 

    That's what we do...

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