Finally, always be clear from start to finish. In doing so, you should be aware of the donor`s intent, the expectations of the parties, the restrictions, the use of the funds and much more. It is difficult to reach an agreement when a party does not understand its content. By examining the full content, it is easy to assess whether things need to be clarified or not. In addition, changes may be possible at some point and adding an endorsement would be helpful. In this way, all parties are preparing for additional requirements and possible changes. When modifying the model, never forget the elements of the gift agreement previously discussed. Insert all necessary elements of the parties, payments, recognition, fund restrictions, application, etc. This way, you only have to divide the document into specific segments. One segment will be for the recognition of each party, another for the payment agreement, and so on. Your main concern is to avoid the absence of something relevant to your agreement, otherwise your document will not fully serve its purpose. 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. At PW, we believe that any gift that reaches the level of great gift status with your charity should require a gift agreement. Yes, even if it`s a gift to the annual fund. Gift agreements do not have to be legally binding, but you can do so by making them enforceable. Binding agreements and contracts usually involve the court when a dispute is pending anyway. This is why an enforceable gift agreement is won when the law is included, in order to avoid misunderstandings and illegal practices. The days of “Take my money and do with it what you want” are fortunately behind us. Our charities do so much more when we have real partnerships with donors, because they have so much more to offer us than just their financial support. However, this more engaged relationship requires us to carefully review and document what the donor expects and for the charity to be engaged.
Gift agreements, often referred to as declarations of intent, serve explicitly to achieve both objectives.