Pledges Policy

Policy Statement

The policies and procedures set forth in this document are intended to assist and guide the activities of Adelphi University personnel who are involved in gift accounting procedures.

Reason for Policy

These policies and procedures are intended to provide a standardized and consistent approach to the University’s gift accounting procedures.

Who Is Governed by this Policy

Staff

Policy

I. Pledges

1. Pledges are only to be recorded when full payment is expected at some point in the future. There will be a document, in most cases a governing fund agreement that will have the pledge schedule imbedded within the governing document, from the University to the donor outlining the pledge agreement. Financial Accounting Standards Board statement FAS116 requires non-profit organizations to regard pledges in much the same manner as accounts receivable. Therefore, there must be a clear understanding of the donor’s payment intentions/schedule so that future anticipated payments can be value-dated. Furthermore, there must be proof that pledges are in good standing. Pledges not in good standing, for which there is no amplifying correspondence with the donor outlining revised payment terms, are subject to direct investigation by the University’s auditors. If full payment is received at the same time a “pledge” is made, no pledge record should be created.
2. Pledges can be overpaid. In other words, if the final payment against a pledge will cause the sum of all payments to exceed the original pledged amount, the University will accept the payment without requiring a modification to the pledged amount. This situation will most likely occur when the payment is made by a gift of securities. If, however, the donor specifically indicates he/she is increasing his/her pledge, when the pledge is $250.00 and higher, then the pledge record must be modified and, if necessary, rescheduled. On the other hand, if the donor indicates he/she wishes to establish a new pledge with the excess payment, a new pledge record must be created and the payment split accordingly.
3. Once the sum of all pledge payments exceeds 99% of the pledged amount, the Office of the Vice President of University Advancement will mark the pledge as paid. The Controller’s Office will generate a list of due pledge payments monthly in accordance with the payment schedule. This will occur as long as there is an outstanding balance on the pledge. The Office of the Vice President of University Advancement will issue pledge reminder letters to be sent to the pledge holders.

II. Written Pledge

The Office of the Vice President of University Advancement enters pledges into the database for documented pledges. A copy of the signed pledged is given to the Office of the Executive Vice President of Finance to be entered into the SaaS system. The amount of the pledge recorded represents only the amount the donor personally plans to contribute. It does not include any anticipated matching gifts from the donor’s employer or any payments which will be made through a donor advised fund. A donor cannot obligate a company to continue to match his/her gifts. Therefore, any matching gift revenue that is received by the donor’s company of employment will be designated to the same fund(s) the donor has identified but will not be applied as a pledge payment. Additionally, a donor cannot obligate a donor advised fund to make payments to his/her pledge. If a donor advised fund will be utilized, a Statement of Intention will be recorded rather than a pledge.

At the time the pledge is entered into the database, an installment schedule, based on the number of anticipated payments and the beginning and end date of the pledge, is established. Installment information is used to generate pledge aging reports for the Office of the Executive Vice President of Finance to use in monitoring the progress of pledges and for writing-off pledges as described in the next section.

III. Phone Pledge

Phone pledges are electronically transferred from the phone-a-thon vendor to the Office of the Vice President of University Advancement and are recorded in the database. These pledges are held active for approximately two months after the end of the fiscal year. If not fulfilled within that timeframe, phone pledges are written off.

IV. Online Pledge

Online pledges are recorded in Net Community based on the information provided through Adelphi University’s main giving page by the donor. Online pledges are count as new business once the pledge is entered and submitted; pledge payments are tax exempt for the donor in the year that they are made. The Office of the Vice President of University Advancement will track pledges that are made online for stewardship purposes. For pledges of $25,000 or more, a major gift stewardship plan will be implemented. Pledges will be acknowledged via protocols in place including a governing fund agreement where appropriate.

V. Acknowledging Pledges

The Office of the Vice President of University Advancement will send written acknowledgement to all donors for pledges of $5,000 or more.

VI. Pledge Reminders

All donors with an active pledge(s) will receive a pledge reminder generated by the Office of the Vice President of University Advancement in the month(s) indicated in their original commitment documentation. The pledge reminder will include the following information relative to the commitment:

• Original Pledge Date
• Pledge designation
• Original Pledge Amount
• Current Pledge Balance
• Current Installment
• Overage or Shortage from previous payments, if any
• Total Currently Due

The Office of the Vice President of University Advancement will generate pledge reminders each month and perform a quick review in order to identify any anomalies that need to be brought to the attention of Development staff. The Donor Relations Coordinator will manage the pledge reminder process for the Office of the Vice President of University Advancement after receiving the electronic file from the Office of the Executive Vice President of Finance.

VII. Pledge Monitoring, Modification, and Write-Off Policy

1. Pledge Monitoring
   The Office of the Executive Vice President of Finance will produce a quarterly report for all pledges 3 months past due. The reports will be distributed to the Office of the Vice President of University Advancement for review. Appropriate action will be taken accordingly. The Office of the Vice President of University Advancement will report out to the Office of the Executive Vice President of Finance on the follow up performed.
2. Pledge Modifications
   Should a donor indicate that an existing pledge requires modification, a written confirmation outlining the altered conditions, such as changes in pledge period, installment amount, or fund designation, must be forwarded to the Office of the Executive Vice President of Finance.
3. Pledge Write Offs
   If deemed appropriate, the Office of the Vice President of University Advancement may terminate a donor’s pledge. Such requests may originate with either the donor or the Office of the Vice President of University Advancement. The Office of the Vice President of University Advancement will coordinate with the Office of the Executive Vice President of Finance on implementing the write-off. A request must be in writing and include a brief statement of justification. Pledge write-offs associated with previously assigned naming opportunities will be handled as outlined in the governing fund document. A statement addressing the total of pledge balances written off during the course of a fiscal year will be included in an annual report to the University’s Board of Trustees.

Definitions

This policy does not have definitions associated with it at this time. Upon periodic policy review this area will be evaluated to determine if additional information is needed to supplement the policy.

Forms

This policy does not have forms associated with it at this time. Upon periodic policy review this area will be evaluated to determine if additional information is needed to supplement the policy.

Related Information

This policy does not have related information at this time. Upon periodic policy review this area will be evaluated to determine if additional information is needed to supplement the policy.

Document History

• Last Reviewed Date: October 29, 2017
• Last Revised Date: October 29, 2017
• Policy Origination Date: Unknown

Who Approved This Policy

Brady Crook, Vice President of University Advancement