- A pledge is a promise to make a future donation for a specific cumulative amount and can be paid in a single or in multiple installments.
- Recurring Gift:
- A Recurring Gift is a template used to generate cash gifts at regular intervals. Recurring gifts are similar to pledges paid in installments because a constituent agrees to donate a specific amount for a time period to your organization that will be paid over time, but do not work toward a cumulative amount. Recurring gifts can occur for a specified or unspecified length of time.
The two main differences between Recurring Gifts and Pledges:
- Recurring gifts do not require an end date. If a constituent stops sending gifts, you can edit the gift record with an end date for the recurring gift. When a constituent does not pay the amount owed for a pledge, you must write off the pledge so it is not included as expected income.
- Recurring gifts must be paid with cash gifts. Gift records of all gift types, except pledge, can be applied toward a pledge to reduce the balance. For example, a constituent may pay a $100 pledge with a Gift-in-Kind of a computer printer valued at $100.