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Donation Agreement Template: Gift Terms and Restrictions

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Donation Agreement Template

This Donation Agreement (“Agreement”) is entered into as of [Date], by and between:

Donor: [Full Legal Name, Address]

Recipient: [Full Legal Name of Charity/Organization, Address]

1. Donation

The Donor agrees to donate to the Recipient the following:

  • Amount: [Monetary Value or Description of Property]

  • Form: [Cash, Check, Securities, Real Property, Personal Property]

  • Delivery: [Specify transfer method and date]

Amount: [Monetary Value or Description of Property]

Form: [Cash, Check, Securities, Real Property, Personal Property]

Delivery: [Specify transfer method and date]

2. Purpose

The Donation shall be used for [general charitable purposes / specific project or program]. If designated for a restricted purpose, the Recipient agrees to use the Donation solely for that purpose and to return any unused funds if compliance is not possible.

3. Recognition

The Recipient agrees to acknowledge the Donor’s contribution in accordance with [donor recognition policy / naming rights agreement / other conditions].

4. Reporting and Accountability

If required, the Recipient shall provide periodic reports on the use of the Donation, including financial statements and program updates.

5. Tax Considerations

The Recipient represents that it is a registered charitable or nonprofit organization eligible to receive tax-deductible contributions under applicable law. The Donor understands that tax treatment may vary and is responsible for seeking independent tax advice.

6. Representations

The Recipient represents that the Donation will be used lawfully and in compliance with applicable statutes, regulations, and internal policies. The Donor represents that the Donation is being made voluntarily and without expectation of personal benefit, except as agreed in Section 3.

7. Modification or Impossibility

If the specified purpose becomes impracticable or impossible, the Recipient may use the Donation for a substantially similar purpose, provided it seeks the Donor’s written consent where feasible.

8. Confidentiality (optional)

The Donor may request that the contribution remain anonymous. The Recipient agrees to maintain confidentiality except as required by law.

9. Dispute Resolution

Any disputes arising under this Agreement shall first be addressed through good-faith negotiation. If unresolved, disputes may be submitted to mediation or arbitration before litigation.

10. Governing Law

This Agreement shall be governed by the laws of [State/Country].

11. Entire Agreement

This Agreement constitutes the full and final understanding between the Parties regarding the Donation and supersedes prior oral or written agreements.

12. Signatures

Donor: ____________________________

Printed Name: _____________________

Date: _____________________________

Recipient: __________________________

Printed Name/Title: __________________

Date: _____________________________

Witness/Notary (if required): __________________

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Donation Agreement Template: Gift Terms and Restrictions

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Frequently asked

Donation Agreement Template — quick answers

01

What is a Donation Agreement?

A Donation Agreement is a legal document that sets out the terms under which a donor transfers money, property, or assets to a recipient. It specifies the gift amount, purpose, and any conditions, ensuring both parties are clear about their obligations.

02

Why is a Donation Agreement important?

It provides transparency and accountability. For donors, it ensures contributions are used as intended. For recipients, it establishes a formal record of acceptance and reduces misunderstandings about restrictions, reporting, or donor recognition.

03

When should you use a Donation Agreement?

You should use one when making significant donations, particularly if the gift is restricted to a certain use, involves real estate or valuable assets, or is tied to naming rights, milestones, or reporting obligations. Smaller, unrestricted donations may not require a written agreement, but for larger or conditional gifts, it is strongly recommended.

04

What should a Donation Agreement include?

It should clearly identify the donor and recipient, describe the donation, outline its purpose or restrictions, specify reporting or recognition obligations, and address tax and compliance issues. A good agreement also includes representations, dispute resolution, and governing law provisions.

05

Is a Donation Agreement legally binding?

Yes, once signed, it is binding with respect to the terms and conditions it contains. While some gifts are irrevocable by nature, agreements that include conditions or restrictions can be enforced by either party or even by regulators in some cases.

06

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