Often nonprofits provide some type of paperwork, such as a statement or a pledge form, to their donors
before the donors provide payment. QuickBooks uses two different types of forms for this paperwork:
A statement is a summary of charges, and is often sent on a regular basis. For example, a museum that charges
a quarterly membership fee would send a statement of charges. This statement would represent the quarterly fee as well as any charges,
such as special events or museum shop purchase, accrued during that time period.
A pledge form or an invoice is used to send a bill to a customer, usually for a specific charge or set of charges.
For example, a dance performing troupe might send an invoice to a customer to receive payment after a dance performance. Some other examples:
An environmental organization holds a fundraising drive. Pledge forms are sent to donors who committed to sending payment but did not provide full payment at the time they promised donation.
A health and safety organization provides first aid classes to a company. They request a deposit up front, and use an invoice to receive final payment at the course conclusion.