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 2 a n d 2 0 2 1 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 9.5 percent. Pledges are expected to be collected as follows as of June 30 (in thousands): 2022 2021 Current: In one year or less $ 16,606 $ 18,622 Less allowance (843) (984) 15,763 17,638 Future: Between one and five years 28,928 32,743 More than five years 7,472 12,550 Less discount and allowance (8,572) (11,227) 27,828 34,066 Total $ 43,591 $ 51,704 At June 30, pledges receivable had the following donor stipulations (in thousands): 2022 2021 Endowments $ 47,506 $ 48,827 Property, plant, and equipment 426 9,925 Scholarships and other 5,074 5,163 Subtotal 53,006 63,915 Less discount and allowance (9,415) (12,211) Total $ 43,591 $ 51,704 The university received unconditional pledges from a related party and its associated organizations representing approximately 76.4 percent and 78.8 percent of the balance of outstanding pledges receivable as of June 30, 2022 and 2021, 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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