|7 Feb 2023|
|Written by Ella Bennett|
Understanding the importance of pledges is key for successful planning of 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 period of time, usually several years. Pledges, a promise by donors to make a gift over a similar time frame, play a critical role in this fundraising effort.
The success of a capital campaign relies heavily on the ability to request, secure, and collect pledges from donors. Therefore, pledges really matter in a capital campaign because they serve as a commitment of support and a measure of potential success - and they can also provide a basis for securing additional funding and establishing a timeline for the campaign. Additionally, pledges not only demonstrate community support which can encourage others to give, but also demonstrate to stakeholders that the campaign is viable.
Pledges provide a sense of commitment for donors, which is essential in securing the funds necessary for a successful campaign. 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 are demonstrating their belief in the organisation and its mission, which can be a powerful motivator for others to get involved as well.
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 their spending and ensure that they are able to achieve their goals. This can be particularly important for capital campaigns, which often require large investments over a period of several years.
Don’t forget that pledges also 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. This allows organisations to secure the funding they need to achieve their goals without putting undue financial strain on donors.
By using a pledge tracking system, you can effectively manage and monitor the collection of pledge payments, ensuring that your capital campaign is successful:
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 their 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 enables users 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 the donor to discuss the situation and make arrangements for payment.
Acknowledge payments: Send thank you letters, emails or receipts to donors for each payment received. ToucanTech’s all-in-one comms system enables users to send personalised emails and newsletters to donors using a variety of eye-catching templates.
Pledges are a critical component of successful 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 campaigns. 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 CRM offers a comprehensive solution for pledge collections, supporting a variety of organisation types with their 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? Click here to get in touch with the ToucanTech team today.
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