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Donation Program Agreement

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DONATION PROGRAM AGREEMENT

This Donation Program Agreement (Agreement) is made and entered into as of Effective Date: by and between:

Donor Name:    Recipient Name:

Recitals

WHEREAS, Donor is willing to provide monetary and/or in-kind donations to support a charitable program administered by Recipient under the terms and conditions set forth in this Agreement; and

WHEREAS, Recipient is a lawful entity capable of receiving and administering donations, and will use donated funds in furtherance of the program objectives described in this Agreement and subject to applicable law; and

WHEREAS, the parties desire to set forth the scope, payment terms, reporting obligations, confidentiality, and other material terms governing the donation program.

Scope of Program

The Recipient shall use donations received under this Agreement exclusively for the program activities described below. Recipient shall administer the program in a professional manner and shall comply with the budget, timeline, and restrictions set forth in the Scope of Program.

Donation and Payment Terms

Donation Amount: $    Currency:

Payment Schedule: One-time Recurring    If recurring, Frequency:

Payment Method:

Late Payment: If any payment due hereunder is not received within days of the due date, Recipient may assess interest of % per month on the overdue balance, or the maximum permitted by law, whichever is less.

Tax Receipts: Donor acknowledges that receipt of a donation receipt for tax purposes is subject to Recipient's records and applicable law. Recipient will provide a written acknowledgment upon request indicating the amount and nature of the donation and whether any goods or services were provided in exchange.

Use of Funds; Restrictions

Recipient shall use donated funds only for the program purposes described in the Scope of Program and in accordance with any donor-imposed restrictions expressly set forth in writing. Recipient shall not use the funds for any unlawful purpose, for lobbying activities to the extent prohibited by law, or to benefit private individuals beyond the program beneficiaries.

Reporting and Records

Recipient shall maintain complete and accurate records of expenditures and activities funded by the donations. Recipient shall provide Donor with reports as set forth below.

Term and Termination

Term Start Date:    Term End Date:

Either party may terminate this Agreement for convenience upon written notice to the other party delivered no fewer than days prior to the intended termination date. Termination for cause may be effected immediately where a party materially breaches this Agreement and fails to cure such breach within 15 days of written notice.

Confidentiality

Each party shall keep confidential and shall not disclose to any third party any non-public information disclosed by the other party that is designated in writing as confidential or that, by its nature, should reasonably be considered confidential. Confidential information shall not include information that (i) is or becomes publicly known through no breach of this Agreement; (ii) is lawfully received from a third party without restriction; or (iii) is independently developed without use of the other party's confidential information. Where disclosure is required by law, the disclosing party shall provide prompt notice to the other party and shall cooperate in seeking protective relief.

Representations, Compliance and Indemnity

Each party represents and warrants that it has the full right and authority to enter into this Agreement and to perform its obligations hereunder. Recipient agrees to comply with all applicable laws and regulations in administering the program. Recipient shall indemnify, defend, and hold harmless Donor from any claims, liabilities, losses or expenses (including reasonable attorneys' fees) arising from Recipient's gross negligence or willful misconduct in performing under this Agreement.

Except as expressly set forth herein, neither party shall be liable to the other for incidental, consequential, special, or punitive damages, except for liability arising from willful misconduct or indemnity obligations.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to principles of conflict of laws.

Amendment; Entire Agreement

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral or written. No amendment or modification of this Agreement shall be binding unless in writing and signed by both parties.

Notices

All notices required or permitted under this Agreement shall be in writing and shall be deemed given when delivered personally, sent by certified mail (return receipt requested), or delivered by nationally recognized overnight courier to the addresses set forth below or to such other address as a party may specify by written notice.

Miscellaneous Provisions

Severability: If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall remain in full force and effect. Waiver of any breach shall not constitute waiver of any subsequent breach.

Assignment: Neither party may assign its rights or delegate its obligations under this Agreement without the prior written consent of the other party, except that Recipient may assign to an affiliate or successor entity provided that such assignee assumes Recipient's obligations hereunder.

Donor Printed Name:

Donor Signature:

Date:

Recipient Printed Name:

Recipient Signature:

Date:

Enter text✕

What a Donation Program Agreement Covers

The Donation Program Agreement is a legally binding contract that sets terms between a donor and the recipient organization describing the scope, conditions, and intended use of donated funds or goods. It typically identifies parties, donation purpose, restrictions, reporting obligations, tax treatment, and any returns or revocation rights. Organizations use the agreement to document acceptance, ensure compliance with donor conditions, and record performance metrics. In the United States the agreement may be executed electronically where permitted by the ESIGN Act (15 U.S.C. §7001) and UETA, subject to any statutory exceptions.

Why a Written Agreement Matters

A Donation Program Agreement clarifies donor intent, documents restrictions for tax substantiation, assigns reporting and stewardship responsibilities, reduces legal disputes, and sets conditions for revocation or return. Clear written terms improve transparency for both donors and recipient organizations.

Why a Written Agreement Matters

Who Typically Prepares and Relies on These Agreements

Typical users who complete or rely on Donation Program Agreements include development officers, nonprofit counsel, institutional gift officers, and volunteer fundraisers.

  • Nonprofit development staff documenting donor restrictions and reporting obligations for grants and major gifts.
  • Institutional donors and foundations formalizing purposes, term limits, and performance milestones for awarded funds.
  • Legal counsel preparing wording on tax substantiation, reversion clauses, and liability limitations.

These stakeholders use the agreement to support stewardship, audit readiness, compliance with tax rules, and board reporting obligations.

Core Sections to Include in a Professional Agreement

Core sections of a professional Donation Program Agreement define terms, restrictions, reporting, contingencies, governance, and remedies in clear, enforceable language.

Parties

Identify donor and recipient legal names, business types, and authorized representatives; include mailing addresses and contact details to establish clear attribution and legal capacity for signing and enforcement.

Donation Purpose

Describe intended use, project or program supported, allowable expenses, geographic or temporal limitations, and any prohibited uses to ensure alignment with donor intent and IRS substantiation requirements.

Restrictions & Conditions

Specify restrictions, conditional disbursement triggers, reporting schedules, milestones, and metrics required for continued funding; define consequences for noncompliance and steps for cure or reversion remedies.

Reporting

State reporting frequency, financial and programmatic data formats, responsible parties, review rights, and retention obligations to support audits and donor stewardship, including sample reports and delivery methods (electronic or paper).

Tax Treatment

Note whether donation is unrestricted, restricted, or a pledge; indicate tax-deductible status and whether acknowledgments will include IRS-compliant written substantiation and donor-provided valuation documentation where applicable.

Signatures

Identify authorized signers, signature blocks, date fields, and whether notarization, witness signatures, or remote online notarization are required under applicable state law or institutional approval resolutions as necessary.

Required Information and Fields

Donor Name: Full legal name as on ID
Recipient Organization: Legal entity name and EIN
Donation Description: Quantity, value, and purpose
Effective Date: Enter as MM/DD/YYYY format
Signatory Details: Name, title, contact info
Restrictions: Specific restrictions and duration

Common Preparation Pitfalls to Avoid

  • Vague purpose language that permits differing interpretations of allowable spending, creating disputes and possible requirement to return funds.
  • Missing or incorrect donor name, legal entity, or EIN leads to tax acknowledgment errors and potential withholding or backup withholding requirements.
  • Failure to define reporting schedules or metrics causes compliance gaps and makes audits and donor stewardship more difficult.
  • Not confirming signatory authority or corporate approval resolutions can render the agreement unenforceable against the organization.

Real-world Examples of Use

Examples show how Donation Program Agreements are used across charities, universities, and healthcare foundations and community funds.

University Gift

A university received a restricted endowment gift and used an agreement to specify scholarship eligibility, reporting cadence, and investment policy compliance for the funds.

  • Donor required annual accounting.
  • The agreement included termination provisions if scholarships deviated from stated purpose, defined committee oversight, required audited financial statements annually, and set a process for reassigning funds in limited circumstances to preserve donor intent while complying with university governance.

Healthcare Foundation

A hospital foundation accepted equipment donations and used an agreement to restrict use to pediatric services, outline maintenance responsibilities, and require outcome reporting to the donor.

  • Equipment dedicated to pediatric ward.
  • The contract required inventory tagging, annual operational metrics, a maintenance schedule with assigned vendor responsibilities, and a reallocation clause if pediatric services were discontinued, protecting both clinical needs and donor conditions.

Step-by-Step: Prepare, Execute, and Archive

Follow these steps to prepare, execute, and archive a Donation Program Agreement for legal and operational compliance.

  • 01
    Draft Terms: Define purpose, restrictions, and reporting expectations clearly.
  • 02
    Confirm Authority: Obtain corporate approvals or resolutions authorizing signature.
  • 03
    Sign & Notarize: Collect signatures; notarize or witness if state law requires.
  • 04
    Record & Retain: Store executed copy, send donor acknowledgment, and log retention schedule.

Configuring an Electronic Approval Workflow

Configure an electronic workflow to route, sign, and archive Donation Program Agreements efficiently with audit trails.

Field Configuration
Assign Signers Donor, Recipient, Witness
Authentication Email link; SMS code optional
Notifications Automatic emails on completion
Storage PDF stored with audit trail

Technical Requirements for eSigning and Storage

Choose platforms that support secure eSigning, field customization, and compliant audit trails for Donation Program Agreements, and archival retrieval.

  • File Types: PDF, DOCX, HTML supported
  • Security: AES-256 at rest; TLS 1.2/1.3
  • Integrations: Salesforce, NetSuite, Google Workspace

eSignature Vendor Pricing and Capability Snapshot

Compare core pricing and capabilities for executing Donation Program Agreements electronically; signNow is listed first per comparison conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/month when billed annually — base plan for eSignatures and templates $15/user/month on annual billing; entry-level electronic signature $14/user/month annually for core eSign features $19/user/month on annual billing for document workflow $15/user/month on annual billing for signature workflows
Free Trial 7-day free trial, no credit card required Varies by region and offer Varies by offer Varies by plan Varies by plan
Bulk Send Yes (Business Premium includes bulk send) Yes (bulk features available) Yes (bulk workflows supported) Yes (bulk send available) No bulk send feature on basic plans
Audit Trail Yes — complete audit trail and certificate Yes — audit trail available Yes — audit and history included Yes — audit logs provided Yes — audit trail available
HIPAA Compliant Yes (BAA available) Yes (BAA available) Yes (BAA available) No HIPAA BAA listed No HIPAA BAA listed
Envelope Cap No envelope cap for paid plans DocuSign limits to 100 envelopes/user/year on some plans Varies by plan and subscription Varies by plan and usage Varies by plan and usage

Penalties and Risks of an Incorrect Agreement

Tax Deduction Risk: Loss of donor deduction
IRS Penalties: Incorrect substantiation penalties
Breach Liability: Civil damages and reputational harm
Return Obligations: Obligation to return misused funds
Contract Ambiguity: Disputes increase litigation risk
Compliance Failure: Regulatory fines and audit exposure

Frequently Asked Questions

Answers to common questions about drafting, executing, and enforcing Donation Program Agreements, including e-signature, tax, and retention concerns.


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