Donation Agreement Template for India

A Donation Agreement formally records when someone gives money, property, or other assets to a charity, trust, or nonprofit organization in India. This legal contract spells out what's being donated, any conditions attached to the gift, and protects both the donor and recipient under Indian tax and charity laws.

These agreements are especially important for documenting large donations to registered charitable trusts and ensuring compliance with the Income Tax Act and Foreign Contribution Regulation Act (FCRA). They help donors claim tax benefits while giving organizations clear rights to use the donated assets and protection from future disputes about the gift's terms.

Use a Donation Agreement any time your organization receives substantial charitable gifts—especially when donations exceed ₹2 lakh or involve real estate, artwork, or securities. This document becomes crucial when accepting contributions from foreign sources under FCRA regulations or when donors request specific terms for how their gifts must be used.

The agreement proves particularly valuable for educational institutions, religious organizations, and NGOs managing endowment funds or capital campaigns. It helps prevent future disputes, ensures tax compliance for both parties, and creates clear documentation when donors place conditions on their gifts, like naming rights or usage restrictions.

• Donation Contract: Basic agreement for monetary gifts, covering payment terms and general conditions
• Donation Of Land Agreement: Specialized format for real estate transfers, including property details and registration requirements
• Charitable Pledge Agreement: For future-dated or installment-based donations with specific payment schedules
• Property Donation Agreement: Covers movable property transfers, from vehicles to equipment
• Art Donation Agreement: Tailored for artwork donations, addressing valuation and display requirements

• Individual Donors: Private citizens, HNIs, or philanthropists making substantial gifts to charitable causes in India
• Registered Charities: NGOs, trusts, and foundations receiving donations under the Income Tax Act and FCRA regulations
• Religious Organizations: Temples, churches, and religious trusts accepting property or monetary donations
• Educational Institutions: Schools, colleges, and universities managing endowment funds and alumni contributions
• Legal Advisors: Lawyers and tax consultants who draft and review Donation Agreements to ensure compliance
• Board Members: Trustees and directors who approve and oversee major donation transactions

• Donor Details: Gather complete contact information and PAN details of the donor for tax compliance
• Asset Information: Document exact description, value, and condition of donated items or amount of monetary gift
• Organization Status: Confirm recipient's registration under Income Tax Act and FCRA compliance if applicable
• Usage Terms: Note any specific conditions or restrictions on how the donation must be used
• Tax Benefits: Identify applicable deductions under Section 80G or other relevant provisions
• Signatory Authority: Verify who has power to accept donations on organization's behalf
• Documentation: Collect supporting papers like property titles or valuation certificates

• Parties and Details: Full legal names, addresses, and PAN numbers of donor and recipient organization
• Gift Description: Clear specification of donated assets, including value and transfer timeline
• Charitable Purpose: Statement of intended use and any restrictions on the donation
• Tax Provisions: Reference to applicable sections of Income Tax Act and deduction eligibility
• Transfer Terms: Immediate vesting of rights and irrevocable nature of the gift
• Representations: Donor's ownership rights and authority to make the donation
• Governing Law: Jurisdiction clause specifying Indian law applicability
• Execution Details: Signature blocks, witness requirements, and stamp duty compliance

A Donation Agreement differs significantly from an Asset Purchase Agreement, though both involve transferring assets. Let's explore their key differences:

• Purpose and Consideration: Donation Agreements transfer assets without expecting payment or benefit, while Asset Purchase Agreements involve monetary compensation for the transfer
• Tax Treatment: Donations qualify for tax benefits under Section 80G of Income Tax Act, whereas asset purchases are treated as regular business transactions subject to capital gains
• Legal Requirements: Donation Agreements need charitable organization verification and FCRA compliance, while Asset Purchase Agreements focus on due diligence and financial terms
• Reversibility: Donations are typically irrevocable once completed, but asset purchases may include conditions for reversal or warranties
• Documentation: Donation Agreements require proof of charitable status and gift acceptance policies, whereas Asset Purchase Agreements need detailed financial terms and asset valuations