Pledge vs. Donation: What’s the Difference?
The main difference between pledge and donation is that a pledge may be paid over time or in a lump sum whereas a donation is typically a one-time gift that is made at the time of the donation.
Before we move to more differences, let’s first understand Pledge and Donation:
- Pledge: A pledge is a commitment to make a future donation to a cause or organization.
- Donation: A donation is an immediate gift of money or other assets to support a cause or organization.
Now, let’s get to Pledge vs Donation:
Major differences between Pledge and Donation
|A pledge is typically paid in installments over a period of time.||A donation is typically a one-time gift.|
|A pledge may allow the donor to spread out their gift over a longer period of time.||A donation provides immediate support to the cause or organization.|
|A pledge may be used to support a specific campaign or project.||A donation can be used for any purpose that the organization chooses.|
|A pledge may require the donor to sign a written agreement or contract.||A donation can be made without any formal agreement.|
|A pledge can help organizations to plan for future fundraising needs.||A donation provides immediate resources to support current needs and programs.|
So, these are the main differences between the entities.
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