A well-developed donation contract form contains a description of the investment of time and money, or other potential inconveniences that the organization may cause due to trust in the promised gift. Here are the steps to follow when writing an agreement: Philanthropy Works published an article about entering into a gift agreement focused on a department leadership perspective. Read it here. In some cases, if a promise to make a future donation is not kept, the other party may keep that promise through legal action. To do this, it is necessary that the commitment is duly documented by a binding contract. In addition, the agreement must clearly indicate how it is subject and how the agreement is to be concluded. The way in which the agreement is to be amended should also be described in order to avoid confusion in the future. According to the Pennsylvania Land Trust Association, a written agreement is required for: The purpose of this agreement is to define the terms of the gift and how it takes effect. The agreement must indicate the expectations and agreements of both parties. A written agreement helps reduce the likelihood of misunderstandings between the parties and also makes the pledge a legally binding commitment. This helps to protect human interests. It`s up to your organization to use this model and adapt it to your own needs and goals. The resources made available on this page are intended to help you make the model your own.
In a gift contract, the most important details of the relationship of the parties are recorded: things like the identity of the parties, a description of the gift and, if desired, things like the form of receipt and the use of the gift. A good donation agreement also discusses revocability (if the donation can be withdrawn) and responsibility for costs. A gift or donation agreement, which should not be confused with a gift acceptance policy, is specifically intended to spell out and document what the donor expects and what the nonprofit has committed to do. Any gift that reaches the primary gift status set by your organization should require a gift agreement, including at the monthly gift level. A thorough gift deal can ensure that your nonprofit and the donor are on the same side and agree with the different aspects of the main gift. Gift agreements are made and signed to avoid any misunderstandings and show your donor that you are interested and that he is appreciated and important. Here`s an example of Lynne Wester`s language from Donor Relations Guru that you can have checked by your general counsel and then have in your gift agreement: Here`s an example of a gift deal for the University of Alabama at Birmingham, provided by the Association of Donor Relations Professionals. *This was also included in section 11 of the gift agreement template above.
A few other questions and points from Philanthropy Works that you should consider when developing your formal and written agreement: “A donation agreement can be used to ensure that a donor`s promise is reliable, that the expectations of the donor and donor are determined, and that misunderstandings should be avoided.” – ConservationTools.org, Pennsylvania Land Trust Association As a non-profit organization, it is necessary to establish clarifications. donations received. Thus, a donor must keep records of the donations he has made, especially when it comes to tax time. Having an accurate gift agreement and other financial documents on file will help keep the nonprofit and donor on the same page. . . .