A third-party pledge payment comes in to play when you need to enter pledge payments from a constituent other than the donor who made the pledge. When you enter these payments, they count toward fulfilling the donor’s pledge, and you can track who gave the money so you can send acknowledgment letters and/or recognize these third parties for their contributions.

For this example, let's say, a Community Foundation made a payment towards John Smith's pledge.
  1. Enter the gift on the Community Foundation account and soft credit that gift to the donor "John Smith" that has the pledge.
  2. Navigate to John Smith's account and enter a payment for the same amount as the foundation gift.
  3. In that donor's account (John Smith), also enter a disbursement for the same amount as the payment you just entered.

    This method will allow you to give hard credit to the foundation and link the donor account to it. Adding the Payment will reduce the pledge balance accurately. Adding the Disbursement will correct the total received amount for this donor so that it doesn't appear they gave hard money that they did not.