Understanding the importance of pledges is crucial to successfully planning a capital campaign. With a focus on securing major gifts, capital campaigns aim to generate sufficient funds to achieve an organisation’s long-term goals and objectives over a certain period of time, usually several years. 

Pledges are a promise from donors to make a gift over a similar period of time and play a very important role in fundraising efforts. 

Why pledges matter

The success of a capital campaign relies heavily on the ability to request, secure, and collect pledges from donors. Pledges serve as a commitment of support and a measure of potential success by providing a basis for securing additional funding and establishing a timeline. Pledges not only demonstrate community support, which can often encourage others to give, but also demonstrate the viability of a campaign to stakeholders.

Donors are more likely to make a pledge if they feel confident that the organisation is capable of delivering on its promises and that their gift will make a meaningful impact. When a donor makes a pledge, they’re showcasing their belief in the organisation and its mission. 

Having pledges in-hand also allows organisations to plan and budget effectively. With the knowledge of what funds will be available in future years, organisations such as schools and charities can prioritise spending and ensure they’re able to achieve their goals. This can be particularly important for capital campaigns, which often require large investments over a period of several years. 

It’s also important to remember that pledges generally solicit larger gifts than a donor might make otherwise if they needed to make the gift in a single year. Donors may feel more comfortable making a larger gift over several years rather than a single major gift all at once. 

Step-by-step guide for setting up your pledge tracking system

By using a pledge tracking system, you can effectively manage and monitor the collection of pledge payments, ensuring that your capital campaign is successful. 

Here’s how to get started:

Set up a pledge tracking system

Choose a pledge tracking software to keep track of pledges and payments.

Record pledges

Ensure that all information about each pledge is inputted into your database, including the amount, payment schedule, and donor information.

Send reminders

Regularly remind donors about pledges and upcoming payments.

Track payments

Record when payments are received and ensure that this is updated on the tracking system. ToucanTech’s donor pipeline offers the ability to effectively track, manage and steward donors and their pledges.

Report on progress 

Use your pledge tracking system to generate reports on the progress of the campaign and the status of pledges and payments.

Follow up on late payments 

If payments are overdue, follow up with donors to discuss and make arrangements for payment.

Acknowledge payments

Send thank you letters, emails or receipts to donors for payments received. ToucanTech’s all-in-one system has the ability to send personalised emails and newsletters to donors using a variety of eye-catching templates.

A winning formula for capital campaigns

By providing a sense of commitment for donors, enabling effective planning and budgeting, and allowing organisations to solicit larger gifts, pledges are the secret ingredient for capital campaign success.

Organisations that understand the importance of pledges - and incorporate them into their fundraising strategies - are more likely to achieve their goals and secure the funding they need to make a positive impact in their communities

ToucanTech’s all-in-one system offers a comprehensive solution for pledge collections, supporting a variety of organisation types with capital campaigns. 

With features such as pledge tracking on a donor pipeline, centralised donation management, robust reporting and analytics, and a powerful CRM, ToucanTech helps streamline the pledge collection process, reducing administrative burden and enabling more effective tracking and reporting of campaign progress. 

Want to find out more? Get in touch with the ToucanTech team today.