Donation Agreement

A donation agreement records a donor's gift of cash, property, or restricted funds and the recipient's use, acceptance, acknowledgment, and return terms.

A useful document turns the parties' actual arrangement into measurable duties, approvals, timing, remedies, and a reliable execution record. Its terms should be reconciled to the transaction rather than copied from an unrelated form.

• A donor funds a named charitable program
• A family gives equipment to a nonprofit
• A company pledges installments for a capital campaign

The document name alone does not determine the right structure. Consider a different instrument or qualified legal review when any of these conditions applies:

• Do not promise tax deductibility without checking recipient status and gift facts.
• Do not use a donation agreement to disguise a sponsorship purchase with substantial promotional benefits.

Record exact facts before clauses are written. Names, authority, dates, amounts, defined terms, dependencies, and incorporated materials should be verifiable and consistent.

• Donor, recipient and tax status
• Cash or property description and valuation
• Restrictions, milestones and reporting
• Recognition, naming and return conditions

These decisions shape the allocation of responsibility and should not be left for boilerplate to decide:

• Is the gift unrestricted or restricted
• What happens if the project ends
• What recognition is promised
• Who handles valuation and tax documentation

• Gift or pledge and payment schedule
• Restricted purpose and variance process
• Acceptance, stewardship and reports
• Acknowledgment and goods or services disclosure
• Default, return and dispute procedure

Every provision should use the same parties, dates, standards, defined terms, and document hierarchy. A clause that is reasonable by itself can still create a conflict when it is not reconciled with payment, default, termination, or another exhibit.

1. 01Describe the intended result and the relationship in plain language.
2. 02Confirm parties, authority, governing jurisdiction, dates, money, property, services, and approvals.
3. 03Resolve the key decisions and identify every schedule, exhibit, disclosure, consent, or filing.
4. 04Draft the provisions as one consistent system, then review the complete execution set before signature.

Restrictions can outlast the original project; inaccurate tax acknowledgments or quid pro quo treatment can mislead the donor.

The main agreement may establish the framework while schedules, exhibits, disclosures, consents, or operational records supply transaction-specific details.

• Recipient determination or status record
• Gift or asset schedule
• Acknowledgment and valuation records

Each incorporated document should be identified precisely, use the same names and effective date, and follow a stated order of precedence if terms conflict.

Verify recipient authority and tax status, document property delivery, and issue the correct acknowledgment without assigning an unsupported value.

• Confirm legal names, roles, capacity, addresses, and signing authority
• Reconcile dates, amounts, definitions, cross-references, schedules, and exhibits
• Confirm that duties, deadlines, approvals, acceptance standards, and payment triggers are measurable
• Check that default, termination, remedies, and surviving obligations work together
• Complete jurisdiction-specific forms, notices, witnesses, notarization, filings, or professional review when applicable
• Deliver and preserve the complete signed package with its incorporated documents

These sources provide federal, state-resource, regulatory, or institutional context. They do not replace checking the law and required forms applicable to the parties, transaction, and governing jurisdiction.

1. Source 1

   Substantiating charitable contributions

   Internal Revenue Service. Official substantiation and quid pro quo disclosure requirements.

2. Source 2

   Charitable contributions: Written acknowledgments

   Internal Revenue Service. Official acknowledgment elements for contributions of $250 or more.

3. Source 3

   Tax Exempt Organization Search

   Internal Revenue Service. Official search for federal tax-exempt organization status.