425.1 Recording of Pledges

425.1 Recording of Pledges

A. Background

The accurate recording of pledges is fundamental to sound fiscal planning. All pledges should be appropriately recorded and documented.

B. Policy

Furman Fund and Paladin Club pledges are recorded from a variety of sources, including pledge cards, phonathons, and even by word of mouth. Further documentation for these pledges is not required. Should a Furman Fund or Paladin Club pledge remain unpaid at the end of the fiscal year, it is considered a defaulted pledge and is to be eliminated from the books; this fact is noted in the record of the person who made the pledge. Non-annual-fund pledges such as those for endowed funds or buildings are not eliminated at the end of the fiscal year, and therefore it is all the more critical that they be recorded properly.

C. Guidelines

1. All non-annual-fund pledges, in order to be recorded, require the following: date, purpose, and amount of pledge; payment schedule; and donor's signature.

2. Unless otherwise noted, the assumed payment schedule shall be December of each year for the period of years indicated by the donor or the pledge form. Any exception shall be noted in the file.

3. The Director of Development Services shall be responsible for periodic review to ensure compliance with this policy and for an annual review to determine which capital pledges need to be written off.

...........................