This agreement has no valid consideration cannot be confirmed in court, therefore the agreement should include a nominal consideration or other replacement of the counterparty. An agreement for the public recognition of the donor or the designation of a building according to the donor may be considered a valid consideration. In addition, the agreement must clearly state the law under which it is regulated and how the contract is terminated. How the agreement should be amended should also be described so as not to avoid confusion in the future. 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. Philanthropy Works published an article on entry with a gift agreement geared towards a department management perspective. Read it here. A moral clause or moral clause is a small but important segment that you can add to your gift contracts. A moral clause is used to define certain circumstances that would be inconvenient or detrimental to the reputation and values of an organization. According to Lynne Wester, not-for-profit organizations must protect their organizations from unreasonable risks. Most non-profit organizations depend on the goodwill of the public service to attract donors.
A close relationship with someone whose name has been severely damaged can damage the reputation of the non-profit organization and its ability to gain support. 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. ConservationTools.org, which was managed by the Pennsylvania Land Trust Association, has been very thorough in creating a useful donation manager from the perspective of a conservation organization. You can check here. The agreement may also mention that all disputes arising from the agreement fall within the exclusive jurisdiction of a particular jurisdiction. Here is a model gift scheme created for real estate by Tulsa County. This customizable model was created by the Community Foundation of Collier County and has been slightly modified. Make sure that Section 2 of the model is tailored to the purpose of your gift contract. Other areas to be adapted are in parentheses. Since a not-for-profit organization must keep accurate records of donations received, a donor must keep a donation record, especially when it comes to the tax period. A specific agreement on gifts and other financial documents will help keep the non-profit organization and donor on the same page.