Donor Agreement Template

Donor Agreement Template

DONOR AGREEMENT AND GIFT ACKNOWLEDGMENT

This Donor Agreement ("Agreement") is entered into as of [__/__/____] ("Agreement Date") between:

DONOR:
Name: [________________________________]
Address: [________________________________]
City, State, ZIP: [________________________________]
Phone: [________________________________]
Email: [________________________________]
Tax ID (if entity donor): [________________________________]

ORGANIZATION:
[________________________________] ("Organization"), a nonprofit corporation organized under the laws of the State of [____], recognized as exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code.
EIN: [________________________________]
Address: [________________________________]
City, State, ZIP: [________________________________]

RECITALS

WHEREAS, the Organization is organized and operated exclusively for charitable, educational, and/or other purposes described in IRC § 501(c)(3); and

WHEREAS, the Donor wishes to make a charitable contribution to the Organization in the manner and on the conditions described in this Agreement; and

WHEREAS, the Organization wishes to accept such contribution subject to the terms of this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants herein and the charitable gift described below, the parties agree as follows:

SECTION 1: GIFT DESCRIPTION AND TERMS

1.1 Nature of Gift

The Donor hereby contributes or pledges to contribute the following to the Organization:

Gift Type (check all that apply):

☐ Cash — Amount: $[________________________________]

☐ Check — Amount: $[________________________________] Check No.: [____]

☐ Wire Transfer / ACH — Amount: $[________________________________]
Wire transfer instructions will be provided by Organization upon request.

☐ Publicly Traded Securities — Description: [________________________________]
Number of Shares: [____] Estimated Value at Date of Gift: $[________________________________]
Transfer Method: ☐ DTC Transfer ☐ Certificate Delivery
Organization's Brokerage Account: [________________________________]

☐ Real Property — Description: [________________________________]
Estimated Value: $[________________________________] (Qualified appraisal required per IRC § 170(f)(11) — see Section 5)

☐ Tangible Personal Property — Description: [________________________________]
Estimated Value: $[________________________________] (Appraisal required if value exceeds $5,000)

☐ Closely Held Stock / Business Interest — Description: [________________________________]
Estimated Value: $[________________________________] (Requires Gift Acceptance Committee review)

☐ Life Insurance Policy — Policy No.: [________________________________]
Face Value: $[________________________________] Cash Surrender Value: $[________________________________]

☐ Bequest/Planned Gift — Nature: [________________________________]

☐ Other — Description: [________________________________]

1.2 Gift Value

Total Estimated Gift Value: $[________________________________]

For non-cash gifts, the Donor is responsible for obtaining a qualified appraisal where required by IRS rules (see Section 5). The Organization does not provide appraisals or valuation opinions to donors.

1.3 Payment Schedule (for cash gifts or pledges)

☐ Single Payment — Payment Date: [__/__/____]

☐ Multi-Year Pledge — Total Pledge Amount: $[________________________________]

Note on Pledge Enforceability: Pledge enforceability varies by state. In most states, a pledge is enforceable as a binding contract only if the Organization provides consideration (e.g., commits to take action in reliance on the pledge) or the pledge is supported by promissory estoppel. In some states, a written pledge is enforceable on its face. The Organization will treat this pledge as a binding commitment, and the Donor agrees to fulfill all installments as scheduled.

SECTION 2: GIFT DESIGNATION

2.1 Restricted or Unrestricted Gift

☐ Unrestricted Gift — The Donor grants the Organization complete discretion to use this gift for any purpose consistent with the Organization's charitable mission. Unrestricted gifts provide the Organization with maximum flexibility to address its most pressing needs.

☐ Restricted Gift — The Donor requests that this gift be used only for the following purpose:

Designated Purpose: [________________________________]

Designated Fund or Program: [________________________________]

Conditions or Restrictions: [________________________________]

IMPORTANT — Donor-Imposed Restrictions: Restrictions imposed by the donor are legally enforceable against the Organization under applicable state law and the Uniform Prudent Management of Institutional Funds Act (UPMIFA), where adopted. The Organization accepts this restriction and agrees to use the gift only for the designated purpose, subject to the variance provision in Section 2.3.

2.2 Endowment Designation (if applicable)

☐ The Donor requests that this gift be added to an existing endowment fund named: [________________________________]

☐ The Donor requests that this gift establish a new named endowment fund: [________________________________]
Minimum funding level required: $[________________________________]
Investment objective: ☐ Growth ☐ Income ☐ Balanced

2.3 Variance Clause (Cy Pres)

If, in the Organization's judgment (with Board approval), the original designated purpose of a restricted gift becomes unlawful, impractical, impossible to achieve, or wasteful, or if the restricted purpose has been substantially fulfilled, the Organization may redirect the gift to a purpose as similar as possible to the original purpose. For endowment gifts, the Organization will follow applicable UPMIFA procedures, which may require court approval for modification of donor restrictions.

SECTION 3: NAMING RIGHTS (IF APPLICABLE)

☐ Not Applicable — This Agreement does not include naming rights.

☐ Naming Rights Apply — In recognition of this gift, the Organization agrees to name the following in honor of the Donor or Donor's designee:

Named Opportunity: [________________________________]
Naming Honoree (if different from Donor): [________________________________]
Duration of Naming: ☐ Permanent ☐ [____] years, ending [__/__/____]

Naming Rights Conditions:

• The named opportunity is subject to availability and the Organization's naming policies.
• The Organization reserves the right to modify or remove the name if: (a) the Organization discontinues the named program or facility; (b) the named facility is substantially altered, demolished, or sold; (c) the Donor engages in conduct that is materially inconsistent with the Organization's values or public trust, as determined by the Board in its sole discretion; or (d) the Donor fails to fulfill the financial commitment of this Agreement.
• In the event naming rights are modified or removed, the Organization will use good-faith efforts to discuss alternatives with the Donor or Donor's representatives.
• Donor's use of Organization's name or logo in connection with announcing this gift is subject to Organization's prior written approval.

SECTION 4: TAX ACKNOWLEDGMENT AND DISCLOSURE

4.1 Written Acknowledgment — IRC § 170(f)(8)

This section constitutes the Organization's written acknowledgment of the charitable contribution described in Section 1. This acknowledgment is required by IRC § 170(f)(8) for donors claiming a deduction for contributions of $250 or more. To claim a deduction, the donor must obtain this written acknowledgment no later than the date the donor files a tax return for the year in which the contribution was made.

The Organization, [________________________________], EIN [________________________________], hereby acknowledges receipt of the charitable contribution described in Section 1 of this Agreement.

Description of contribution: [________________________________] (description only — no value provided for non-cash contributions, per IRS requirements)

Cash amount (if applicable): $[________________________________]

Date of contribution/transfer: [__/__/____]

4.2 Quid Pro Quo Disclosure — IRC § 6115

☐ No goods or services were provided by the Organization to the Donor in exchange for this contribution. This is a fully deductible charitable contribution (subject to applicable AGI limits and donor's personal tax situation).

☐ Goods or services were provided in exchange for this contribution. In accordance with IRC § 6115, the Organization discloses the following:

Description of goods/services provided: [________________________________]
Good faith estimate of fair market value of goods/services: $[________________________________]
Deductible amount (contribution minus fair market value of goods/services): $[________________________________]

Quid Pro Quo Requirement: When a donor makes a payment of more than $75 to a charity partly as a contribution and partly for goods or services, the charity must provide a written disclosure statement. Penalty for failure to disclose: $10 per contribution, not to exceed $5,000 per fundraising event or mailing.

4.3 Donor Tax Responsibility

The Donor is solely responsible for determining the tax deductibility and amount of any charitable deduction. The Organization strongly recommends that the Donor consult a qualified tax advisor regarding:

• Applicable AGI limitations on charitable deductions (generally 60% of AGI for cash gifts to public charities; lower limits for certain property gifts);
• Special rules for gifts of appreciated property (capital gains avoidance);
• Required appraisal and Form 8283 filing for non-cash gifts over $500;
• Qualified appraisal requirements for non-cash gifts over $5,000;
• Substantiation requirements for vehicle donations.

SECTION 5: NON-CASH GIFT — APPRAISAL AND REPORTING REQUIREMENTS

If the Donor is contributing non-cash property, the following IRS requirements apply:

Appraisal Requirements for Gifts Over $5,000:

• Qualified appraisal must be made no earlier than 60 days before the gift and no later than the due date of the donor's tax return.
• Appraisal must be conducted by a qualified appraiser (as defined under Treas. Reg. § 1.170A-17).
• Organization will sign Form 8283, Section B (donee acknowledgment) if required.

Form 8282 — Disposition Reporting:
If the Organization sells, exchanges, or otherwise disposes of donated property within three (3) years of receipt, and the appraised value exceeded $5,000, the Organization is required to file Form 8282 with the IRS and provide a copy to the Donor within 125 days of disposition. This reporting obligation does not prevent the Organization from disposing of property consistent with the Gift Acceptance Policy.

SECTION 6: ORGANIZATION'S REPRESENTATIONS AND OBLIGATIONS

The Organization represents and agrees:

1. The Organization is currently recognized as exempt from federal income tax under IRC § 501(c)(3) and is not a private foundation unless otherwise disclosed.
2. The Organization will use the gift in accordance with the terms of this Agreement.
3. The Organization will provide stewardship reports to the Donor as described in Section 7.
4. The Organization will comply with applicable state charitable solicitation laws.
5. The Organization will retain records of this gift for a minimum of seven (7) years.
6. Donor-Advised Funds (DAFs): If this gift is made through a donor-advised fund, the Donor understands and acknowledges that the sponsoring organization of the DAF (not the Donor) has legal control over the funds, and this Agreement does not create legally binding restrictions on the use of DAF distributions. The Organization will apply DAF distributions consistent with any accompanying grant letter, but cannot guarantee use for a specific purpose.

SECTION 7: STEWARDSHIP AND REPORTING

The Organization agrees to provide the Donor with:

• ☐ Annual report on the use and impact of the gift
• ☐ Semi-annual progress reports for major gifts over $[________________________________]
• ☐ Annual financial statements of the Organization
• ☐ Site visit opportunity upon reasonable advance notice
• ☐ Recognition in the Organization's annual report and/or donor wall (unless Donor requests anonymity — see below)

Anonymity Request:
☐ The Donor requests that this gift be treated as anonymous and that the Donor's name not appear in any public acknowledgment, donor listing, or press release related to this gift.

SECTION 8: GENERAL PROVISIONS

8.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of [________________________________], without regard to conflicts of law provisions.

8.2 Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, and representations.

8.3 Amendments. This Agreement may be amended only by a written instrument signed by both parties. For endowment gifts, modification of donor restrictions may additionally require compliance with UPMIFA and, in some cases, court approval.

8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be an original, and all of which together shall constitute one and the same instrument.

8.5 Assignment. The rights and obligations under this Agreement are personal and may not be assigned by either party without the prior written consent of the other party, except that the Organization may assign its rights and obligations to a successor charitable organization upon merger or dissolution.

8.6 Severability. If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

8.7 Dispute Resolution. Any disputes arising under this Agreement shall first be subject to good-faith negotiation between the parties. If unresolved after [____] days, disputes shall be submitted to mediation before any litigation is commenced.

SIGNATURES

DONOR:

Signature: [________________________________] Date: [__/__/____]

Printed Name: [________________________________]

If signing on behalf of an entity:
Title/Capacity: [________________________________]
Entity Name: [________________________________]

ORGANIZATION:

[________________________________]

By: [________________________________] Date: [__/__/____]

Printed Name: [________________________________]

Title: [________________________________]

EXHIBITS

• Exhibit A: Wire Transfer Instructions (if applicable)
• Exhibit B: Brokerage Transfer Instructions (for securities gifts)
• Exhibit C: Gift Acceptance Policy
• Exhibit D: Stewardship Report Schedule
• Exhibit E: Named Fund Agreement (if applicable)

Sources and References

• IRS Publication 1771 (Charitable Contributions Substantiation and Disclosure): https://www.irs.gov/pub/irs-pdf/p1771.pdf
• IRS Publication 526 (Charitable Contributions): https://www.irs.gov/publications/p526
• IRS Substantiating Charitable Contributions: https://www.irs.gov/charities-non-profits/substantiating-charitable-contributions
• IRC § 170(f)(8), § 6115, § 170(f)(11)
• Uniform Prudent Management of Institutional Funds Act (UPMIFA)

This template should be reviewed and customized by qualified legal counsel before use. Pledge enforceability, UPMIFA procedures, and gift restriction rules vary significantly by state.