No t e s t o Co n s o l i d a t e d F i n a n c i a l S t a t eme n t s J u n e 3 0 , 2 0 2 3 a n d 2 0 2 2 5. Pledges Receivable Unconditional promises to give to the university are included in the consolidated financial statements as pledges receivable and contribution revenue in the appropriate net asset category. In accordance with ASC 820, the university applies a present value technique to new pledges received, whereby the estimated future cash flows are discounted based on a risk-adjusted discount rate in order to determine the fair value of the pledge to be recorded as of the date the pledge was made. The risk-adjusted discount rates applied ranged from 0.8 to 12.5 percent. Pledges are expected to be collected as follows as of June 30 (in thousands): 2023 2022 Current: In one year or less $ 23,719 $ 16,606 Less allowance (1,640) (843) 22,079 15,763 Future: Between one and five years 26,858 28,928 More than five years 4,310 7,472 Less discount and allowance (7,915) (8,572) 23,253 27,828 Total $ 45,332 $ 43,591 At June 30, pledges receivable had the following donor stipulations (in thousands): 2023 2022 Endowments $ 49,287 $ 47,506 Property, plant, and equipment 654 426 Scholarships and other 4,946 5,074 Subtotal 54,887 53,006 Less discount and allowance (9,555) (9,415) Total $ 45,332 $ 43,591 The university received unconditional pledges from a related party and its associated organizations representing approximately 66.5 percent and 76.4 percent of the balance of outstanding pledges receivable as of June 30, 2023 and 2022, respectively. These pledges are payable in annual installments ranging from approximately $3.6 million to $7.6 million through fiscal 2029. 25
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