Watching Over Pledges Receivable During Periods of Change and Uncertainty [SUBSCRIBERS-ONLY]

Pledges receivable are a vital asset on a nonprofit organization’s balance sheet. However, this asset is highly sensitive to changing economic conditions and donor sentiment. Understanding how past management actions have impacted pledges receivable, and learning to adopt new management tactics, is vital to protecting current pledges receivable and attracting new pledges.

We have all gotten better at responding to changing economic conditions and donor sentiment. However, we often tend to rush our response to these changing conditions without considering possible related collateral damage and the long-term impact of our actions. The impact on pledges receivable is a key case in point, surprising many nonprofits and forcing them to reconsider and reposition management practices and actions because of unexpected consequences.