Best Practice for Recording Challenge Grants in RE

Rebecca LeMert

Our organization recently received a grant for one of our special projects that will arrive in two payments of $250K – one this year and one by the end of our fundraising period for the project (early 2027). The second payment is contingent on a certain amount of $ being raised by that point in time.

I am being asked to record this as a pledge in RE (this may not be best practice, but it's how things are done here for tracking and reporting purposes), but I'm unsure about the best way to record the second installment since it is contingent on completing certain requirements. How would you go about recording this type of pledge?

Crystal Bruce

@Rebecca LeMert Hi! You posted this in the Altru community, so I moved it over to the Raiser's Edge NXT community. Thanks!

Alex Wong

@Rebecca LeMert
this depends on your org and finance agreement.

If the first payment is definitely coming, recording a pledge is perfect.

However, if 2nd payment is not definitive, then a pledge would not make sense, instead, should be an opporunity (proposal in dbview terminology). While opportunity allow you to record the ask and expected date and amount ($250K) and campaign/fund, it is not a “gift record” so you will not see this amount show up in any gift report or collection report.