Specifying Pledge Discount Options

Pledges are often paid in installments over a year or more. In this case, an organization may be required by accounting standards to discount the amount of future pledges to their present value for reporting purposes.

Contact your accounting department to determine if and how your organization complies with this requirement. For each fundraising campaign, you can configure whether or not future pledge payments are discounted to present value.

Aptify supports the following discounting options for fundraising campaigns:

• Do not discount: Clear both the Discount Revenue On First Year Payments and the Discount Revenue After First Year options.
• Discount installments after the first year only: Clear the Discount Revenue On First Year Payments option, and select the Discount Revenue After First Year option.
• Discount all future installments: Select the Discount Revenue On First Year Payments and the Discount Revenue After First Year options.

Note that when pledges are discounted (either all future payments or only those after the first year), the discount rate used to calculate the pledge's present value is specified on the Pledges record. See About Present Value and Discount Rates for more information on discounting pledge amounts.