Your shortcut guide to pledge agreements (free template!)

While major donations are always cause for celebration, securing a pledge for ongoing support, especially for multiple years, is even better. Such commitments are essential for long-term nonprofit fundraising success, but to ensure that you and your donors are on the same page about expectations, you’ll need a pledge agreement. 

In this guide, we’ll explain what a pledge agreement is and why it’s so beneficial. We’ll also outline what an informal agreement should contain and the steps for writing one, along with a free template to get you started.

What is a pledge agreement?

Sometimes known as a gift agreement, a pledge agreement is a written commitment in which a donor or sponsor agrees to contribute a specific amount of money to a nonprofit organization, usually over a set period of time and under certain conditions.

Pledges are different from typical donations because they’re not immediate. A pledge agreement provides a helpful record of your donor’s pledge, ensuring that you and your donor have a clear understanding of the terms, dates, amounts, and any conditional requirements or obligations. 

For bigger charitable institutions that frequently handle hefty pledges and other forms of planned giving from major donors or corporate sponsors, more formal, legal agreements may be made to protect both parties. However, for most nonprofits, an informal agreement will be sufficient.

Benefits of pledge agreements

Pledge agreements are a win for both nonprofits and donors, providing mutual security and confidence, along with these other benefits: 

⭐ Clear commitments: Easily view what each donor has pledged so you can align future campaigns and fundraising efforts.

⭐ Demonstrable support: Being able to show that you have a number of pledges could help attract additional funding, donations, and support for your cause.

⭐ Predictable payment schedule: See the donation amounts and when they’ll be received, which allows you to better plan and budget for your nonprofit’s activities and programs.

⭐ Useful documentation: Provide your organization and your donors with a clear record of commitments that they can easily reference for tax season or other legal purposes.

⭐ Relationship building: A gift agreement is like a friendly handshake, so use this as an opportunity to express gratitude to your donors and excitement for the vision you’re building together.

Key elements of a pledge agreement

Pledge agreements don’t have to be long and complex. These core elements are all that are necessary to give you the documentation and confidence you need: 

• Donor details 😃 Information about the individual donor or specified person at an organization, including their name, title, and how you can reach them
• Pledge amount 💰 The total amount of money being pledged by the donor
• Pledge duration 📅 Details about how long the pledge agreement is for, such as one year or five years
• Payment schedule 📋 Information about payment frequency and when the donor will make funds available
• Pledge conditions ✔️ Details of any requirements around the pledge, like publicity, reporting, or whether it’s for a specific program or activity
• Date and signature 📝 A series of dated and named signatures at the end of the agreement to represent both parties

How to introduce informal pledge agreements for your nonprofit

For just a little extra admin time, having a signed pledge agreement that reinforces your donor’s commitment and gives you a sense of security is well worth it. Here’s how to approach the informal pledge agreement process the easy way.

1. Draft your pledge agreement ✍️

Start by drafting a pledge agreement that covers your organization’s needs. Include the donor’s details, pledge amount, and any relevant items for your situation, such as updates on campaign progress.

Once you have one agreement prepared, you can use that as a foundation for any future pledges you’ll receive. Simply update it to reflect each donor’s details and pledge amounts (You can use our free pledge agreement sample below to shortcut your way to a practical informal agreement!).

2. Review the agreement ✅

After you’ve drafted the agreement, it’s helpful to come back and review it another day. Check for any missing clauses, typos, or sentences that are unclear. Update any placeholder text with accurate donor information and pledge amounts. If you have someone else who can review the agreement for you, then even better—they might spot something that you’ve missed.

If you want to make sure your document is legally sound or need that extra peace of mind, you could also have a legal professional review the proposed agreement before you send it to your donor.

3. Share your drafted agreement with your donor 📩

When you’re happy with your pledge agreement, send it to your donor. Invite them to read through the document fully to ensure they’re happy and in agreement with the terms. If they’re not, now is the best time to make adjustments before it becomes a final record.

4. Sign and file your pledge agreement 🎉

By now, everyone is content with the pledge agreement and the only thing left is to sign it. Ask your donor to sign and date the pledge agreement—either digitally or in print. After it’s returned to you, sign and date it on behalf of your nonprofit organization. Lastly, make sure both parties have a finalized record of the agreement and keep a copy safe somewhere.

Download our free pledge agreement template

Pledge agreements don’t have to be complicated, but it can still be hard to know where to start, especially if this is your first experience with them. 

Whether you’re a seasoned pro looking for a shortcut or a fundraising newbie in need of a strong foundation, our free pledge agreement template has everything required to document your donor’s commitment.

Freebie alert!

Download your free informal pledge agreement template ->

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Our pledge agreement sample template is clear and easy to use, ideal as an informal template for most nonprofits. If you require a more in-depth, complex agreement, we recommend engaging a legal expert to prepare and review it for you.

Pledge agreements made easier with Givebutter

Pledge agreements give you and your donor a sense of security and a commitment to working together. This guide will help you prepare pledge agreements that document this relationship, so you have evidence of their support now and into the future. 

After all parties have signed the pledge agreements, don’t let them get lost or forgotten. Keep track of those valuable commitments with Givebutter. You can record pledges, send personalized reminders, set up easy payment plans, and manage everything from one dashboard.

Sign up for Givebutter for free to experience a buttery smooth way to make sure all those valuable pledges get fulfilled—alongside a collection of world-class fundraising tools, features, and analytics. 

Pledge agreement FAQs

There’s always something new to learn about pledge agreements. Here are some of the most frequently asked questions about pledge or gift agreements. 

What is a pledge agreement for?

A pledge agreement is used to document a commitment made by an individual donor or organization to support your nonprofit. It details the donor, pledge amount, and any specific details around the commitment they’re making. 

Can a pledge be a contract?

While a pledge agreement should be treated as a commitment to be honored, a pledge is not automatically a legal contract. If you need your pledge agreement to function as a contract, and the ability to challenge for payment in full, it’s best to consult with a legal expert.

Who signs a pledge agreement?

Ideally, the pledge agreement should be signed by the highest-ranking person at both organizations or by the individual donor if they aren’t representing a company. This ensures that the commitment is being made at a high level and that appropriate authority has been given for the pledge. 

Does a pledge agreement need to be notarized?

For an informal pledge agreement, there’s no requirement to have the signatures notarized by a professional. If your document is more formal and represents a contract, it’s a good idea to have the process observed by a notary.

What is an example of a pledge clause?

Pledge agreements can have a variety of clauses, depending on what is most important to you and your donor. One example might be a clause that covers reporting, such as “[Your Organization] agrees to supply quarterly reports to [Donor] to keep them informed of progress on the campaign.”