(Internal Auditor at Shelby Residential & Vocational Services..) | Aug 19, 2013
Question for the Non Profit experts out there about pledges receivable. I have a client who is in the middle of a Capital Campaign and is getting pledges that span from one to five years, many of which are employees. the client wants to record the present value of all Capital Campaign Pledges at the end of each fiscal year.
My question is how can we accrue Pledges receivable that affects income when there is no legal contract to collect. Just becasue someone pledges a donation does not mean you will ever get it. Does anyone have more detailed information on this issue.