Pledges
A pledge is a written promise to contribute a specific dollar amount according to a defined schedule.
Pledges may be fulfilled in a single payment or over multiple installments. They are generally considered to be ethically binding commitments on the part of the donor, unless written as an intention.
Pledges can be processed through either The Regents or the UC San Diego Foundation. To ensure accurate recordkeeping and alignment with the donor’s intent, a signed pledge letter is required. This letter should clearly state the total pledge amount, payment schedule, and designation. Verbal commitments are not acceptable; written documentation with the donor’s signature is required.
Gift Services will ensure payments are recorded accurately and campaign reporting remains in alignment with IRS and CASE guidelines.
Pledge Documentation
All pledge agreements must include:
-
The total amount committed
-
A defined payment schedule (annual, semiannual, quarterly, or monthly)
-
Donor’s signature
-
Approval and documentation accepted by Gift Services
If a pledge extends beyond five years, only the first five years may be included in campaign totals in accordance with CASE and university reporting standards.
Pledge payments may be made by check, credit card, wire transfer, securities, or other accepted gift tender types. Gift Services will generate pledge reminders based on the agreed schedule unless otherwise requested by the donor.
Conditional vs Unconditional Pledges
Unconditional Pledges are the most common and are not dependent on specific future events.
Conditional Pledges are contingent on defined criteria or milestones. For example, “I pledge $1 million if the university breaks ground on the new science building by June yyyy.” Conditional pledges are not recorded until the condition is fulfilled.
Pledge Intentions are a non-binding expression of a donor's intent to contribute a gift in the future. Unlike a formal pledge, it does not include a legally enforceable obligation or fixed payment schedule. Pledge intentions are often used when donors anticipate using donor-advised funds or private foundations to fulfill their support. These commitments are recorded for stewardship purposes but are not included in official fundraising totals unless specific campaign counting exceptions apply.
Pledges Paid by Donor-Advised Funds or Private Foundations
Donors may not use donor-advised funds (DAFs) or private/family foundations to satisfy personal pledge obligations. When a donor contributes to a DAF or foundation, the donor receives their charitable deduction at the time of that gift. Any subsequent contribution from that fund is legally made by the fund or foundation—not the individual donor.
The IRS prohibits donor-advised funds and private foundations from satisfying a legally binding pledge obligation due to “self-dealing” rules. Violations may result in penalties for both the donor and the fund.
If a donor intends to support a fundraising initiative via a DAF or foundation, the agreement should be structured as a non-binding statement of intent rather than a legally binding pledge.
When a DAF or foundation makes a contribution:
-
The payment is recorded as a gift from the fund or foundation.
-
The individual donor receives recognition credit only, not legal credit.