Donor Agreement Template for United States

A Donor Agreement is a legally binding document used in the United States that formalizes the terms and conditions of a charitable contribution between a donor and a recipient organization. The agreement outlines the specifics of the gift, including amount, purpose, timing, and any restrictions on use. It addresses tax implications, recognition rights, and reporting requirements while ensuring compliance with federal and state charitable giving laws. This document serves to protect both parties' interests and ensure clear understanding of the donation's intended use and management.

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What is a Donor Agreement?

Donor Agreements are essential documents in philanthropic transactions within the United States, used whenever significant charitable contributions are made to organizations. These agreements provide clarity and legal protection for both donors and recipients by documenting the specific terms of the gift, any restrictions on its use, and the obligations of both parties. A well-crafted Donor Agreement helps prevent future misunderstandings, ensures compliance with IRS regulations and state laws, and provides a framework for long-term donor-recipient relationships. They are particularly important for large gifts, endowments, or donations with specific conditions attached.

What sections should be included in a Donor Agreement?

1. Parties: Identifies the donor and recipient organization, including full legal names and addresses

2. Background: States the context and purpose of the donation and the recipient organization's status

3. Definitions: Defines key terms used throughout the agreement

4. Gift Details: Specifies the amount, type, and nature of the donation

5. Use of Donation: Outlines how the donation will be used and any restrictions

6. Tax Status: Confirms the tax-exempt status of the recipient and tax implications

7. Governing Law: Specifies which jurisdiction's laws govern the agreement

What sections are optional to include in a Donor Agreement?

1. Recognition Rights: Details how the donor will be acknowledged, used when donor requests specific recognition or naming rights

2. Payment Schedule: Timeline for installment payments, used for pledged gifts paid over time

3. Investment Guidelines: Specifies how funds should be invested, used for endowment gifts or restricted funds

4. Reporting Requirements: Details on required reports to donor, used when donor requires ongoing updates

5. Contingency Provisions: Addresses changes in circumstances, used for large or complex gifts

What schedules should be included in a Donor Agreement?

1. Gift Schedule: Detailed breakdown of gift amounts and payment dates

2. Recognition Guidelines: Specific details about naming rights or recognition

3. Investment Policy: Detailed investment guidelines for endowed funds

4. Tax Documentation: Copies of relevant tax exemption certificates

5. Project Description: Detailed description of funded project or program

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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