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Exempt Organizations Annual Reporting Requirements - Form 990, Schedules A and B: Reporting Pledges Receivable

A donor made a pledge to my organization that will be paid over three years. Should I discount the total pledge to its present value and report this amount as support in the first year because that is when we received the pledge?

An organization’s public support calculation on Parts II and III of Schedule A should be computed under the same method of accounting that the organization checked on the Form 990, Part XI, line 1, or Form 990-EZ, line G. If your organization uses the accrual method of accounting, it may discount the pledge to its present value and report this amount in the first year, and report accruals of the present value increments to the unpaid pledge in the second and third years. If your organization uses the cash method of accounting, it may only report the amount of the pledge it actually receives during each of the three years.

Additional information

Schedule A instructions

Page Last Reviewed or Updated: 30-Apr-2013