Donation Agreement Template and Key Clauses (2026)

What is a donation agreement, and when do you need one? A donation agreement, also called a gift agreement, is a contract between a donor and a recipient organisation, usually a charity or non-profit, that records a gift and the terms attached to it. It confirms what is being given, whether the gift is unrestricted or must be used for a specific purpose, the schedule for paying a pledge, and how the donor will be recognised. It turns a promise to give into a clear, shared understanding that both sides can rely on. You do not need a written agreement for every small gift. You need one when the gift is significant, when it is restricted to a particular use, when it is a multi-year pledge, when it involves naming or recognition, or when it is a non-cash gift such as property, shares or equipment. In those cases a written donation agreement protects both sides: the donor knows the gift will be used as intended, and the organisation knows exactly what it is receiving, when, and what it has committed to in return. This article is general guidance, not legal advice. Charitable giving engages tax, trust, foreign-contribution and governance rules that vary by jurisdiction, so have a qualified professional review any agreement before you rely on it. ## Donation agreement template Copy the block below and fill the bracketed fields. ```

DONATION AGREEMENT This Donation Agreement ("Agreement") is made on [DATE] BETWEEN: [DONOR NAME], [address] ("Donor") AND [ORGANISATION NAME], [address], a [registered charity / non-profit] ("Organisation") 1. THE GIFT The Donor agrees to give the Organisation [CURRENCY/AMOUNT] / [describe non-cash gift: property, shares, equipment, with value and details] (the "Gift"). 2. PURPOSE (a) [Unrestricted] The Gift is unrestricted and may be used for the Organisation's general charitable purposes; OR (b) [Restricted] The Gift must be used only for [specified purpose / programme / fund]. If that purpose becomes impossible or impractical, the Organisation may apply the Gift to a purpose as near as possible to the original, after [notifying / agreeing with] the Donor. 3. PAYMENT / TRANSFER SCHEDULE The Gift will be paid or transferred as follows: [lump sum on [DATE] / pledge of [AMOUNT] per year for [N] years / transfer of the non-cash asset by [DATE]]. 4. RECOGNITION The Organisation will recognise the Donor as [naming of a programme or space / listing / anonymous]. Any naming lasts for [period] and may be reviewed if [conditions]. [The Donor may choose to remain anonymous.] 5. RECEIPTS AND TAX The Organisation will issue the Donor a receipt in the form its law requires. Each party is responsible for its own tax position. The Organisation makes no representation about the Donor's tax treatment. 6. USE AND REPORTING The Organisation will apply the Gift to the agreed purpose and will report to the Donor on its use [annually / on completion], where the Gift is restricted. 7. NO GOODS OR SERVICES The Gift is a donation. The Donor receives no goods, services or other benefit in return, except any permitted recognition described above. 8. REFUND AND RETURN The Gift is non-refundable once given, except [if a restricted purpose fails and the parties agree a return / as required by law]. 9. REPRESENTATIONS The Donor confirms the Gift is lawfully theirs to give and is not the proceeds of unlawful activity. The Organisation confirms its charitable status and authority to accept the Gift. 10. GOVERNING LAW AND DISPUTES This Agreement is governed by the laws of [jurisdiction], with disputes subject to [courts / arbitration]. Signed for the Donor: __________ Signed for the Organisation: __________ Name / title / date Name / title / date

- **Purpose (clause 2).** Decide whether the gift is unrestricted or restricted. A restricted gift must be used only for the stated purpose, so add a fallback (often called a variation or cy-pres style clause) for when that purpose becomes impossible, or the funds can get stuck.
- **Payment schedule (clause 3).** For a pledge, set out the amount and timing of each instalment. Multi-year pledges are the ones most likely to be disputed later, so clarity matters.
- **Recognition (clause 4).** If the donor is being recognised or a space or programme is being named, state what the recognition is, how long it lasts, and when it can be reviewed. Give the donor the option to stay anonymous.
- **No goods or services (clause 7).** Confirm the donor gets nothing of value in return beyond recognition, because any benefit received can affect whether the gift qualifies for tax relief. ## Key clauses explained, and how each side negotiates them - **Restricted versus unrestricted.** Donors often want their gift tied to a specific cause they care about. Organisations prefer flexibility and want a fallback clause so a restricted gift is not frozen if the programme changes. The usual compromise is a clear restriction plus a sensible variation mechanism.
- **Recognition and naming.** Donors want durable recognition; organisations want the right to review or remove naming if circumstances change, for example if the donor's conduct could damage the organisation. A morals or review clause handles this.
- **Refunds (clause 8).** Organisations want gifts to be non-refundable so they can rely on and spend them. Donors of restricted gifts sometimes want a return right if the purpose fails. Settle this in writing rather than leaving it to argument.
- **Pledge enforceability.** Whether a non-binding pledge can be legally enforced varies by jurisdiction. Organisations that rely on a multi-year pledge should take advice on making it a clear, documented commitment. ## Common mistakes to avoid - No fallback clause on a restricted gift, so the funds cannot be used if the purpose becomes impossible.
- Treating a non-cash gift like cash, and ignoring valuation, transfer and tax steps.
- Promising tax outcomes to the donor, which the organisation is not usually in a position to guarantee.
- Vague or permanent naming rights with no review mechanism.
- No written schedule for a multi-year pledge, so later instalments are disputed. ## A note on jurisdiction Charitable-giving rules vary by jurisdiction, and the tax side is especially local. In India, the agreement sits under the Indian Contract Act, 1872; donations to eligible organisations may qualify the donor for deduction under section 80G of the Income-tax Act subject to conditions; donations received from foreign sources are tightly regulated under the Foreign Contribution (Regulation) Act, 2010 (FCRA) and require the organisation to hold valid FCRA registration; and corporate gifts can engage corporate social responsibility rules under the Companies Act. In the US, UK and elsewhere, deductibility, gift-aid style reliefs and the enforceability of pledges follow different rules. Because of this, treat tax deductibility, foreign-donation compliance and pledge enforceability as jurisdiction-specific, and say "varies by jurisdiction" where you are unsure. Last verified October 2026. ## Where a contract workspace helps A template gets you a solid donation agreement. The ongoing work is everything after signing: tracking which gifts are restricted and to what purpose, honouring pledge schedules and reporting dates, checking each agreement for a workable fallback and sensible recognition terms before you sign, and keeping versions straight as an organisation signs many donor agreements over the years. Drafting a donation agreement and flagging a restricted gift with no fallback or a permanent naming right with no review, while keeping pledge dates and reporting obligations on one timeline, can live in one AI contract workspace tuned to how your organisation accepts gifts, with terms edited in plain language. [Adira](https://adiralaw.com) is one workspace built along those lines for donor agreements.