Here is a model gift scheme created for real estate by Tulsa County. This agreement is necessary if a person wishing to make a donation to another person or organization wishes to document their intention through an agreement. A donation contract is required whenever the donation is subject to certain restrictions on the future use of the gift or when the donation should only be used by the donor in accordance with certain pre-defined conditions. In such cases, the terms of the donation must be clearly defined in order to avoid misunderstandings between the parties in the future. Here is an example of Lynne Wester`s language at Donor Relations Guru, so that you have verified your general opinion and have it on hand in your gift contract: in addition to that, the agreement must clearly state the law under which it is regulated and how the agreement is terminated. How the agreement should be amended should also be described so as not to avoid confusion in the future. If, at any time, the donor does not behave himself without proper consideration of public morality and decency, or if the donor commits an act or is involved in a situation, or if an event tends to degrade the donor in the Community, or which places the donor in public contempt or a public scandal or which seriously and negatively carries the reputation or activity of the charity , whether information is made public or not, the charity has the right to withdraw the donor`s recognition rights, as required by this donation contract. The AICPA.org play is part of a reflection here in the negotiation and development of gift contracts. The purpose of this agreement is to define the terms of the donation and determine how it is implemented.
The agreement must set out the expectations and understanding of both parties. A written agreement helps to reduce misunderstandings between the parties and also makes the donor`s pledge a legally binding obligation. This helps to protect the interests of the event. The agreement must clearly state the names of the parties between whom the agreement is concluded. These include the names of the party that makes the donation (the donor) and the party that accepts the donation (the donor). It is worth mentioning the date on which the agreement was reached, as well as the area in which the agreement is enforceable. This was also included in section 11 of the template for the gift arrangement above. In a donation contract entered the most important details of the relationship of the parties: things like the identity of the parties, a description of the donation and, if you wish, things like the form of receipt that was given and the intended use for the donation. A good donation contract also deals with withdrawal (if the donation can be withdrawn) and cost liability. Look at an example of an example gift deal example from the University of Alabama at Birmingham provided by the Association of Gift Relations Professionals here.
These standard agreements are only used as a reference and do not constitute legal advice. People who wish to enter into similar agreements are advised to turn to a lawyer. A donation contract, which should not be confused with a gift acceptance policy, is expressly used to spell and document what the donor expects and what the non-profit organization undertakes to do. Any gift that reaches the most important gift status defined by your organization should require a gift agreement, even at the monthly donation level. A full donation agreement can ensure that your non-profit organization and donor are on the same side and match the various aspects of the main gift. Gift contracts are concluded and signed to avoid misunderstandings and show your donor that you are interested and appreciated and important. Donation agreements in the United States are governed by the internal income code, which is overseen by the Internal Revenue Service (IRS).