Charitable Pledge Agreement for the United States

Charitable Pledge Agreement Template for United States

A Charitable Pledge Agreement is a legally binding document under U.S. law that formalizes a donor's commitment to make a future gift to a qualified charitable organization. The agreement outlines the terms of the pledge, including payment schedule, purpose of the donation, recognition rights, and any conditions attached to the pledge. It ensures compliance with federal tax laws and state-specific charitable regulations while protecting both the donor's intentions and the recipient organization's interests.

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What is a Charitable Pledge Agreement?

The Charitable Pledge Agreement serves as a critical tool in philanthropic giving within the United States, providing a formal structure for significant charitable commitments. This document becomes necessary when donors wish to make substantial contributions over time or attach specific conditions to their gifts. The agreement typically includes detailed payment schedules, purpose restrictions, recognition provisions, and compliance with IRS requirements. A well-drafted Charitable Pledge Agreement helps prevent misunderstandings, ensures tax compliance, and creates a legally enforceable commitment while protecting both the donor's philanthropic intentions and the charitable organization's interests.

What sections should be included in a Charitable Pledge Agreement?

1. Parties: Identification of donor and charitable organization

2. Background: Context of the pledge and charitable purpose

3. Definitions: Key terms used in the agreement including Pledge Amount, Payment Schedule, and Charitable Purpose

4. Pledge Amount and Payment Terms: Specific amount pledged, payment schedule, and method of payment

5. Purpose of Pledge: Detailed description of how the pledged funds will be used by the charitable organization

6. Recognition Rights: Terms regarding how the donor will be acknowledged and recognized by the organization

7. Representations and Warranties: Standard representations from both parties regarding authority and capacity to enter into agreement

8. Governing Law: Specification of jurisdiction and applicable laws governing the agreement

What sections are optional to include in a Charitable Pledge Agreement?

1. Conditions Precedent: Specific conditions that must be met before the pledge becomes binding or enforceable

2. Matching Requirements: Terms and conditions for matching funds from other sources, if part of a matching campaign

3. Tax Implications: Specific provisions regarding tax treatment and documentation requirements

4. Modification Provisions: Terms for amending or modifying the pledge terms during the agreement period

5. Default and Remedies: Provisions dealing with potential default scenarios and available remedies

What schedules should be included in a Charitable Pledge Agreement?

1. Schedule A - Payment Schedule: Detailed timeline and terms for pledge payments

2. Schedule B - Recognition Details: Specific terms and conditions of donor recognition, including naming rights if applicable

3. Schedule C - Project Description: Detailed description of the funded project or program

4. Schedule D - Tax Documentation: Required IRS forms and tax-related documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

United States

Publisher

Genie AI

Document Type

Donation Agreement

Cost

Free to use

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