Purpose
This policy establishes guidelines for the acceptance, recording, and stewardship of promises to give (pledges) made to Midland’s Open Door. It ensures transparency, accountability, and faithful stewardship of resources entrusted to the ministry.
Definition
A promise to give is a written or verbal commitment from a donor to contribute a specific amount of money, goods, or services to the organization, either immediately or over a defined period.
Acceptable Forms of Promises
- Written Pledges: Signed pledge cards, letters, or electronic forms.
- Verbal Pledges: Accepted only when documented by staff or volunteers and confirmed in writing to the donor.
- Conditional Pledges: Accepted only if the conditions are clearly stated and approved by leadership.
Non-Binding Nature of Pledges
Unless otherwise specified in a legally enforceable written agreement, all charitable pledges are considered moral commitments and not legally binding obligations.
The organization understands that financial circumstances may change and will treat donors with grace and respect should they need to modify or withdraw a pledge.
Documentation Requirements
- All pledges must include donor name, contact information, pledge amount, payment schedule, any restrictions on use, and a statement that no goods or services were provided in exchange for the pledge unless otherwise disclosed.
- Staff will issue written acknowledgment within 10 business days.
Recording & Reporting
- Pledges will be recorded in the accounting system in accordance with generally accepted accounting principles (GAAP) for nonprofit organizations.
- Conditional pledges will be recorded only when conditions are substantially met.
Stewardship & Follow-Up
- Donors will receive periodic updates on the ministry’s work and the impact of their giving.
- Friendly reminders may be sent for outstanding pledge balances.
Confidentiality
All donor information will be kept confidential and used solely for ministry purposes, unless the donor provides written consent for public recognition.
Authority & Review
This policy shall be reviewed periodically by the Board of Directors to ensure compliance with applicable laws, accounting standards, and best practices.