Our Foundation is discussing booking all annual fund pledges as a non-binding commitment. Below is a summary of the proposal points and implementation notes.
I am curious to hear if anyone else is doing this or if we have overlooked a point.
Booking annual fund pledges as non-binding gifts (1/6/22)
Issue: Currently, we book annual fund pledges as binding pledges in Advance. Suppose donors make pledge payments from a DAF, Foundation or another third party. In that case, it creates a tremendous amount of extra work and opportunity for error that can result in the donor's receiving a past due notice that's incorrect.
Additionally, the Foundation confirms that the payment is NOT related to a binding pledge to receive payments from a DAF.
Proposal: Book all-new annual fund pledges (starting now) as non-binding commitments (LOIs). Keep existing annual fund as currently booked.
What would change: