How to Create an Effective Pledge Management System

In the dynamic world of nonprofit fundraising, donor pledges are a powerful tool for securing long-term financial stability and fostering deeper relationships with supporters. Research shows that donors who give online one year are nearly 40% more likely to give again the following year. We recommend being proactive by engaging donors early, and often in order to cultivate a strong relationship with donors year after year so that securing pledges feels natural and becomes a reliable source of revenue for your organization.

Let’s explore why it is crucial for nonprofit organizations to create and manage donor pledges effectively and how to maximize the impact of sustainable giving.

What are donor pledges?

A donor pledge is a commitment made by a donor to contribute a specific amount of money or resources to a nonprofit organization over a defined period of time. This is different from charitable gifts that donors pay immediately. For example, pledges can be one-time, monthly, quarterly, or annually, allowing donors to spread their contribution out based on their financial circumstances and charitable goals.

You can ask for pledges in a variety of ways, such as via face-to-face meetings, mailings, or over the phone. Hosting a fundraising event is also a great way to engage donors. Based on recent data, donors make an average pledge of about $170 on a mobile device at fundraising events. While your team is planning events, be sure to think about ways to incorporate options for attendees to get involved in your mission, including how they can make a charitable pledge.

With DonorPerfect, you can accept mobile payments on-the-go!

Pro tip: You don’t have to produce new fundraising processes and procedures! If your team is looking for some best practices and sample pledge forms, check out this guide from the Association of Fundraising Professionals.

Why donor pledges matter

Pledges are essential for nonprofit sustainability, providing a stable financial foundation so that organizations can forecast future income and plan accordingly. This is critical for long-term goals and when unexpected economic circumstances arise.

From a donor engagement perspective, pledges often lead to deeper relationships with supporters as they create an ongoing connection to their favorite charities. Another benefit is that donors might be more willing to commit to a larger level of funding when they are able to spread out the payments over time.

3 Tips to Create an Effective Pledge Management System

Tip 1: Establish types of pledge options for your nonprofit 

• Offer a variety of pledge types to accommodate different donors’ giving preferences and capacities. When entering a pledge, DonorPerfect allows you to select from several frequency options (e.g., annual, bi-weekly, monthly, quarterly).
• Include ways to secure in-kind donations for non-monetary support. For example, a company might want to pledge supplies at fair market value for your upcoming event. 
• Tailor pledge amounts and durations to your donor base and organizational needs. Ensure each option is clearly defined and easy to understand. For example: pledge $120 annually ($10 per month) to support your local animal shelter.
• Create materials that educate donors about pledge options and the benefits of pledging future gifts. Be sure to highlight exciting programs that your team is working on and how donations will make a difference. 

Monthly giving continues to be a popular option amongst donors. You can learn how to set up, stop, or change monthly giving pledges in DonorPerfect. If you are looking to learn more about recurring giving, check out our Top 5 Tips to Grow Your Monthly Giving Program.

Tip 2: Develop a robust pledge management system

• Utilize a CRM, like DonorPerfect, capable of tracking various pledge types.
• Create clear protocols for recording pledge information, including amount, frequency, and purpose to help your team track pledges for specific funds and ensure that a donor’s intent to make a donation if fulfilled. 
• Set up a pledge reminder process for payments and follow-ups.
• Establish a system for regular pledge fulfillment reporting and analysis.
• Train staff on proper pledge recording and management procedures.
• Implement security measures to protect donor information.
• Develop a process for handling pledge modifications, cancellations, and closed pledges. 

Tip 3: Create a comprehensive donor communication strategy 

• Set up a regular schedule for updates and impact reports for donors who have made a donation or a pledge.
• Develop clear, compelling messaging about the impact of pledges on your mission.
• Send thank you notes or a summary of contributions to donors to maintain a positive relationship.
• Create personalized pledge agreements or forms that outline pledge terms and expectations.
• Establish protocols for addressing missed payments or changes in donor circumstances.
• Develop a strategy for upgrading one-time donors to pledge donors.

Creating and managing donor pledges is a vital strategy for nonprofits seeking to build sustainable funding and deeper donor relationships. By implementing a comprehensive pledge program and managing it effectively, organizations can secure more predictable revenue, increase donor loyalty, and ultimately amplify their impact.

Remember, the key to a successful pledge program lies not just in securing initial commitments, but in nurturing those relationships throughout the pledge period and beyond. With the right approach, pledge donors can become some of your organization’s most valuable and committed supporters, providing a strong foundation for long-term success and mission fulfillment.