One of the fundamental objectives of an agreement that gives money is to set the amount of the donation and the time or periods of payment required. As a general rule, the amount promised must be paid in full on a given date or date. Other payment arrangements may work well in other cases; For example, a donation may be more affordable if it is made on a payment schedule over time or after a future event arrives. The An Introduction to Stewardship Funding Arrangements and the Model Stewardship Funding Funding Covenant provide examples of provisions for deferred funding of a donation of money that can be adapted to cover donations of money (whether or not donations are intended for fiduciary purposes that are at the heart of this guide and model). For example: conservation organizations impose time on staff and have to pay a large amount of expenses in order to rely on a conservation donation. The organization needs protection to ensure that it is fully reimbursed, whether the facilitation is complete or not. In addition, the organization must take into account that any facilitation added to its portfolio increases the risk of future enforcement actions. Before investing in preparedness, the Organization needs firm agreement on the amount and date of contributions to cover the Organization`s short-term (by the closing date of the facility) and the long-term (for the management and implementation of the long-term facility). Donation agreements in the United States are governed by the internal income code, which is overseen by the Internal Revenue Service (IRS). In particular, section 501 (c) (3) of the internal income code refers to non-profit organizations.
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. Assuming that the donation is conditional on a particular future event, the agreement may include a provision that the donation can be repaid. For example: 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 does. 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.
Donations of Stock and Other Securities discusses the benefits of donating shares rather than cash, the procedure to be followed and the applicability of donation contracts in certain circumstances. 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. Here`s an example of Lynne Wester`s language at Donor Relations Guru for you, which you checked through your general counsel and that you have on hand in your gift agreement: The Restricted Gifts Guide offers information on topics related to limited gifts and the development of a donation contract. 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.