>> what do you do when a donor defaults on a pledge? What do you do when a donor sues you because they're unhappy with how you spent their money?
Talk to a lawyer. Sometimes pledges are just empty promises. Sometimes they are actually contracts. The former can be ignored. The later must be handled by legal professionals.
Examples:
I promise to give you $100 = nothing.
I promise to match donations up to $100 = contract.
I promise to leave you $100 in my will = nothing.
Let my kid hang a painting in your gallery and get $100 in my will = contract.
The use of famous names can be tricky irrespective of whether they once donated or not. "The Micheal Jackson school of dance" ... expect lawyers. "The Trump memorial outhouse" = free speech ... also expect lawyers but feel good that you are in the right.
Talk to a lawyer. Sometimes pledges are just empty promises. Sometimes they are actually contracts. The former can be ignored. The later must be handled by legal professionals.
Examples:
I promise to give you $100 = nothing. I promise to match donations up to $100 = contract. I promise to leave you $100 in my will = nothing. Let my kid hang a painting in your gallery and get $100 in my will = contract.
The use of famous names can be tricky irrespective of whether they once donated or not. "The Micheal Jackson school of dance" ... expect lawyers. "The Trump memorial outhouse" = free speech ... also expect lawyers but feel good that you are in the right.