Donation Agreement Template for England and Wales

A Donation Agreement sets out the legal terms when someone gives money, property, or other assets to a charity or organization in England and Wales. It protects both the donor and recipient by clearly stating what's being donated, any conditions attached to the gift, and how the donation will be used.

These agreements help charities comply with UK charity law and prove proper handling of donations to the Charity Commission. They're especially important for large gifts, restricted donations (where funds must be used for specific purposes), or when tax relief applies. The agreement also helps organizations manage donor relationships and maintain clear records for accounting and governance.

Use a Donation Agreement when your organization receives significant financial gifts, property donations, or valuable assets. It's particularly crucial for donations above £5,000, gifts with specific usage requirements, or when dealing with complex assets like shares or intellectual property.

The agreement becomes essential when dealing with recurring donations, multiple donors contributing to a single project, or donations involving tax relief claims. Charities in England and Wales need these agreements to demonstrate proper governance to the Charity Commission, especially for restricted funds that must be used for designated purposes. They also protect both parties if questions arise about the donation's terms or usage.

• Donation Contract: Standard agreement for one-time monetary gifts, covering basic terms and conditions
• Donor Agreement Contract: Detailed contract for ongoing or recurring donations with specific reporting requirements
• Charitable Donation Pledge Agreement: Used for future commitments and planned giving arrangements
• Real Estate Donation Agreement: Specialised agreement for property donations with specific transfer provisions
• Stock Gift Agreement: Tailored for share transfers with valuation and transfer timing clauses

• Charitable Organizations: Main recipients of donations, responsible for documenting terms and ensuring proper use of funds
• Individual Donors: Private citizens making substantial gifts, often seeking tax relief or specific use of their donations
• Corporate Donors: Companies making charitable contributions as part of CSR initiatives or community engagement
• Legal Advisers: Solicitors who draft and review agreements to ensure compliance with charity law
• Trustees: Charity board members who approve and oversee donation arrangements
• Financial Officers: Handle accounting, tax documentation, and restricted fund management

• Basic Details: Gather full legal names, addresses, and contact information for all parties
• Donation Specifics: Document exact value, description of assets, or payment schedule for recurring gifts
• Usage Terms: Define any restrictions or specific purposes for the donation's use
• Tax Requirements: Confirm Gift Aid eligibility and collect necessary declarations
• Charity Status: Verify current registration with the Charity Commission
• Timeline: Set clear dates for donation transfer, reporting requirements, and any milestones
• Authority Check: Confirm signatories have proper authorization to execute the agreement

• Parties Section: Full legal names and addresses of donor and recipient organization
• Gift Description: Detailed specification of the donation, including value and form
• Transfer Terms: Clear timeline and method for transferring the donation
• Usage Provisions: Any restrictions or specific purposes for the donated assets
• Tax Declarations: Gift Aid statements and relevant tax provisions
• Representations: Donor's authority to make gift and charity's status confirmation
• Governing Law: Explicit statement of England and Wales jurisdiction
• Execution Block: Signature spaces with clear dates and witness provisions

A Donation Agreement differs significantly from an Annuity Agreement, though both involve financial transfers. While a Donation Agreement represents a one-time or periodic gift without expectation of return, an Annuity Agreement creates a binding obligation to make regular payments in exchange for an initial sum or asset.

• Legal Nature: Donation Agreements are voluntary transfers without consideration, while Annuity Agreements are contractual obligations with specific payment terms
• Tax Treatment: Donations often qualify for Gift Aid and tax relief, whereas annuity payments are typically treated as taxable income
• Duration: Donations are usually complete upon transfer, but annuities create ongoing payment obligations that may last years or lifetimes
• Regulatory Framework: Donation Agreements fall under charity law, while Annuity Agreements are regulated by financial services legislation