Gift Agreement: How To Make A Gift Agreement For Your Nonprofit + Template

Gift Agreement: How To Make A Gift Agreement For Your Nonprofit + Template

Creating a simple and straightforward experience for your donors is essential to building a strong, fruitful relationship with your supporters. There are many different ways to create a streamlined donation process for those who wish to support your nonprofit.

For example, text-to-give solutions make donating a cinch, especially when they have an easy-to-use interface for both donors and employers internally. Another tool that nonprofits can utilize to create a more consistent donor experience is through a gift agreement. Gift agreements are essentially a way for nonprofits and donors to stay on the same page regarding what the donor has agreed to donate on a continuous or rhythmic basis.

Like a pledge card, a gift agreement is also a great way to promote repeat donations, and creating one is relatively simple. Today we’ll be discussing what details to include in your gift agreement, and we’ve even provided a template to get you started! But first, let’s break down the purpose of gift agreements in their entirety.

The Purpose of Gift Agreements

Gift agreements are created to ensure an understanding between donors and nonprofits. For this reason, the goals of a gift agreement are as follows:

  • Set clear expectations between the donor and the nonprofit.
  • Provide sufficient documentation of the donor’s promise for donations in the future.
  • Make it clear what the donor’s intention is with their donation.
  • Spell out the specific and realistic guidelines that the nonprofit may use the gift for.
  • Provide information on how the nonprofit may alter how they use the funds.

What to Include in Your Gift Agreement

There are different sections you can include in your gift agreement based on your specific needs. However, typically they will include the following three sections:

Introduction – Should simply outline which parties are involved in the agreement. Example:

This Gift Agreement is made this ____ day of _______ between [Donor’s Names], and [Your Nonprofit] a[n] [description of what your nonprofit is/does]. The Donor and [Your Organization] agree as follows

Donor Commitment -The amount the donor has pledged to give.

Donor Purpose – What the purpose of the agreed-upon gift will be used for.

Payment – A breakdown of the payments and which dates they will fall on.

Signature and Witnesses – Signatures for those involved in the agreement, as well as the date signed and any witnesses that are present.

After these initial sections, you can add any more sections that may be appropriate based on your agreement. Here are some examples:

Recognition by (Nonprofit Name) – Requires that to honor the donor, the nonprofit will mention them in news announcements and other media or marketing outlets, with the permission of the donor.

Reporting and Stewardship – Requires that the nonprofit provides updates on how the funds are being used and whether or not they are successful in achieving whatever goal the donor had in mind when they donated.

Additional Gifts – The donor reserves the right to increase their donations through additional gifts.

Future Changed Circumstances – Any circumstances in which the donation amount may change based on outside forces or unforeseeable circumstances.

Amendment – A section outlining whether or not amendments can ever be made to the agreement and which parties must be involved to make an amendment.

Morality Clause – If at any time the donor or his or her name may compromise the public trust or the reputation of the institution, including acts of moral turpitude, the institution with the approval of the board of trustees has the right to remove the name or return the gift.

Entire Agreement -Acknowledging that this agreement contains all the necessary information on the agreement. If there are any other documents that contain info on this agreement, include the names of those documents here and address who has possession of originals and copies.

Free Downloadable Gift Agreement Template

If you’re in need of a quick, simple, and easy-to-use gift agreement template, download this one for free! It’s editable to ensure you can include all the specific details between you and the donor.

 

Link to PDF Gift Agreement

No Comments

Sorry, the comment form is closed at this time.

How Our Heroes are Impacting Their Communities

  • TD Jakes white text

    Realizing a need for reentry services in the Dallas/Fort Worth area, Bishop T.D. Jakes founded the Texas Offenders Reentry Initiative (T.O.R.I.) program in 2005. Since inception, T.O.R.I. has provided service to over 23,000 returning citizens in the areas of employment, education, healthcare, housing, spiritual guidance and family reunification. Involvement in the T.O.R.I. program ensures increased opportunity, housing security, expanded educational opportunities, financial literacy and creates a heightened quality of life for each participant willing to complete the program. T.O.R.I. clients proudly state “I am more.”
  • Our church staff has worked with various different companies through the years but we experienced a higher level of care and responsiveness with mobileAxept than we have with others. As we rolled out our program to our members, mobileAxept gave us templates and tools that made the marketing team’s job very easy.
  • The Text-to-Give program is convenient, secure and accurate! I can give at any time, not just when I’m at church, and it makes it easy to keep up with my donations. mobileAxept also offers the ultimate in customer service - super friendly and helpful with excellent results!