Here`s an example of Lynne Wester`s language at Donor Relations Guru for checking you through your general counsel and then having it on the spot in your gift contract: this customizable model was created by the Community Foundation of Collier County and 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. 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. 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 undertakes to do.
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. 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. 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.
A well-developed donation contract form contains a description of the investment in time and money or other potential disadvantages that grant commitments could cause for the organization. This document can be used for a business or person preparing to make a donation to a non-profit organization organized pursuant to Section 501 (c) (3) of the Internal Income Code. In this document, the form filler may enter relevant identification details, for example. B whether the parties are individuals or companies, their contact information and, of course, all the details of the donation, including its monetary value. A donation contract, also known as a charitable agreement, provides written proof of a gift or gift given to a non-profit organization in the United States. A donation contract is important for both parties: the non-profit organization (often called a beneficiary) and the person or institution making a donation (often calling the donor). The charity must keep accurate records of donations received, but the donor must also keep a record of the donations he has made. Having specific financial documents in the file will help both parties register internally as well as on the tax date.