Can the agreement be e-signed?

Yes. Electronic signatures are legally binding in the U.S. under ESIGN and state UETA statutes when intent, consent, attribution, and retention are satisfied; check state exceptions for certain documents.

What proves a charitable deduction?

A sponsor-issued contemporaneous written acknowledgement or receipt describing the gift, the date, and stating whether goods or services were provided is required to support donor tax claims.

Is notarization required?

Not typically required for DAF agreements, but sponsors or state law may request notarization or RON for asset transfers or signature verification; confirm with the sponsor.

How are non-cash gifts valued?

Donors must follow IRS appraisal rules for certain non-cash gifts; agreements should describe valuation date and whether an appraisal is required to support deduction amounts.

How do I change advisor rights?

Amendments should follow the agreement’s amendment clause; sponsors often require written notice and may require updated identification or successor appointment documents.

How long must records be kept?

Retain contribution receipts and related records at least three years for IRS purposes; longer retention may be needed for HIPAA or state-specific requirements.

Electronic Signature
Templates
Miscellaneous
Donor Advised Fund Agreement

Donor Advised Fund Agreement

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DONOR ADVISED FUND AGREEMENT

This Donor Advised Fund Agreement (the Agreement) is made effective as of by and between Sponsoring Organization Name: (the Sponsoring Organization) and Donor Name: .

WHEREAS

WHEREAS, the Donor desires to establish a donor advised fund (the Fund) under the sponsorship of the Sponsoring Organization to carry out philanthropic purposes and to recommend distributions to qualified charitable organizations; and

WHEREAS, the Sponsoring Organization is a tax-exempt public charity authorized to accept and administer charitable funds and assets for the public benefit and to make distributions in accordance with its organizational documents and applicable law; and

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to the establishment, administration, investment and distribution of the Fund in accordance with the terms of this Agreement.

FUND IDENTIFICATION

Fund Name Fund Number (if applicable)

SCOPE OF WORK / PURPOSE

The Fund shall be established and administered to accomplish the charitable purposes described below. The Donor may provide advisory recommendations consistent with the Fund's purpose, subject to the Sponsoring Organization's review and approval.

Scope of Philanthropic Objectives (Scope of Work)

ESTABLISHMENT AND CONTRIBUTIONS

The Donor hereby transfers and delivers to the Sponsoring Organization the initial contribution in the amount of on or about . All contributions accepted by the Sponsoring Organization shall be irrevocable charitable gifts to the Sponsoring Organization and shall be added to the Fund.

Additional Contribution Terms / Restrictions

ADVISORY RECOMMENDATIONS; DISTRIBUTIONS

The Donor (and any named successor advisors) may submit advisory recommendations for distributions from the Fund to eligible charitable organizations. Advisory recommendations shall be presented in writing or other form acceptable to the Sponsoring Organization and are advisory in nature only. The Sponsoring Organization retains ultimate legal authority and discretion to approve, modify or decline any recommendation to ensure compliance with its organizational documents and applicable law.

Minimum Grant Amount Grant Recommendation Schedule / Conditions

PAYMENT TERMS AND ADMINISTRATIVE FEES

The Sponsoring Organization may charge administrative fees for the management and operation of the Fund as set forth below. Such fees may be deducted from Fund assets in accordance with the Sponsoring Organization's fee schedule.

Administrative Fee (percent or flat) Ongoing Contribution Schedule / Payment Method Late Fee on Scheduled Payments

INVESTMENT AND CUSTODY

The Sponsoring Organization shall hold, invest and reinvest Fund assets in accordance with its investment policies. The Donor acknowledges that the Sponsoring Organization exercises sole legal control over Fund assets and that investment decisions are made in the Sponsoring Organization's discretion consistent with its fiduciary obligations.

TERM, TERMINATION AND DISPOSITION

This Agreement shall commence on the Effective Date and shall continue until terminated in accordance with this section. Either party may terminate this Agreement upon written notice to the other party in the amount set forth below. Upon termination, any remaining Fund assets shall be distributed in accordance with the Donor's written designation or, absent such designation, to one or more charitable organizations selected by the Sponsoring Organization consistent with the Fund's purpose.

Contract Start Date Contract End Date (if any) Notice Period for Termination (days) Disposition of Residual Fund Assets Upon Termination

CONFIDENTIALITY

Each party shall keep confidential any nonpublic information concerning the other party received in connection with the Fund, except to the extent disclosure is required by law or necessary to administer the Fund. The Donor acknowledges that the Sponsoring Organization may disclose donor identity or grant information as required by law or the Sponsoring Organization's policies.

LIMITATION OF LIABILITY; INDEMNIFICATION

The Sponsoring Organization shall not be liable for loss or depreciation of Fund assets except for loss resulting from gross negligence or willful misconduct. The Donor agrees to indemnify and hold harmless the Sponsoring Organization and its officers, directors and employees from claims arising from the Donor's recommendations, misrepresentations or breaches of this Agreement.

AMENDMENT

The Sponsoring Organization reserves the right to amend the terms of this Agreement upon reasonable written notice to the Donor to ensure continued compliance with applicable law or the Sponsoring Organization's policies. Material amendments shall not impair the Donor's reasonable donor intent without written notice and an opportunity to provide input.

GOVERNING LAW

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

ENTIRE AGREEMENT

This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior agreements, representations and understandings, whether written or oral. No waiver or modification of any provision shall be effective unless in writing and executed by both parties, except as permitted in the Amendment section above.

ACKNOWLEDGMENTS

The Donor acknowledges that contributions to the Fund are irrevocable and that advisory recommendations are non-binding. The Sponsoring Organization acknowledges its fiduciary duties in administering the Fund in accordance with its organizational documents and applicable law.

Additional Acknowledgment (optional)

Sponsoring Organization:

By:

Date:

Donor:

By:

Date:

What a Donor Advised Fund Agreement Is and why it matters

A Donor Advised Fund Agreement is a written contract between a donor (or donor advisor) and a sponsoring organization that establishes an advised charitable fund. It records the fund name, donor privileges to recommend grants, contribution types, investment and distribution policies, custodian responsibilities, and termination conditions. The agreement and accompanying receipt are central to substantiating charitable deductions and documenting the sponsor’s acceptance of assets, investment authority, and conditions on grant recommendations under U.S. tax rules.

Why a clear agreement reduces risk and supports tax compliance

A written Donor Advised Fund Agreement clarifies roles, documents contributions for IRS purposes, limits ambiguity about grant recommendations, and records custodian approval processes. It protects donors and sponsors by defining powers, restrictions, and reporting practices.

Typical parties and professionals involved

Common users include donors, sponsoring organizations, and advisors who manage or recommend grants for charitable funds.

Donors and donor-advisors who contribute assets and recommend distributions to qualified charities.
Sponsoring public charities that accept, invest, and distribute donated assets under fund terms.
Financial advisors and trust officers who coordinate contributions, valuations, and investments on behalf of donors.

Legal counsel and accountants typically review agreement language to confirm tax substantiation, investment terms, and alignment with 501(c)(3) rules.

Step-by-step: completing a Donor Advised Fund Agreement

Follow these steps to prepare, review, and finalize the agreement so contributions and recommendations process smoothly.

01

Prepare Document: Gather donor ID, TIN, fund name, and gift details.
02

Review Terms: Confirm investment/distribution policies and any donor restrictions.
03

Sign and Date: All parties sign using an accepted method and include effective date.
04

Deliver and Acknowledge: Sponsor issues receipt and records the contribution for tax purposes.

Core elements to include in a professional Donor Advised Fund Agreement

A complete agreement anticipates administration needs and documents the legal and tax relationships between the donor and the sponsoring organization.

Parties

Identify donor(s), donor advisor(s), and sponsoring organization with legal names and contact details to avoid acceptance disputes and ensure correct tax reporting.

Contributions

Specify eligible asset types, valuation method, date of contributed property, and any required appraisal or substantiation for non-cash gifts.

Investment Policy

State who controls investment decisions, permissible investments, and rebalancing frequency to clarify fiduciary duties and risk allocation.

Grant Recommendations

Describe how donor recommendations are submitted, considered, and approved, including any timing, restrictions, or prohibited recipients.

Recordkeeping

Set expectations for receipts, annual statements, tax substantiation, and retention of records to support audits and donor tax claims.

Amendment & Termination

Define procedures for modifying the agreement, successor advisors, or closing the fund, including distribution of residual assets.

Essential data fields required in the agreement

Donor Name: Full legal name

Tax ID: SSN or EIN

Fund Account: Sponsor fund identifier

Gift Details: Asset type and amount

Contribution Date: MM/DD/YYYY format

Signatures: Signer names and dates

How the agreement flows from signature to distribution

A concise workflow helps donors and sponsors understand timing and required actions after signing.

Document Drafted: Agreement prepared and customized.
Signed: Donor and sponsor execute the agreement.
Asset Transferred: Sponsor receives and records contribution.
Grants Processed: Donor recommendations reviewed and distributed.

Configuring an online workflow for completion and eSubmission

Set up fields, signer roles, and notifications so the agreement executes correctly and audit data is captured automatically.

Field	Online Setting
Signature Field	eSignature required
Date Field	Auto-fill MM/DD/YYYY
Grant Recommendation	Conditional field when donor selects 'recommend'
Custodian Approval	Role-based signer and notification

Technical considerations for eSigning and records management

Verify platform capabilities, authentication options, and integrations before collecting signatures.

Integrations: Salesforce, NetSuite, Google Workspace
File Formats: PDF, DOCX, and HTML supported
Authentication: Email, SMS code, or advanced MFA

Ensure the chosen platform preserves an audit trail, supports required security controls, and retains records for the legally required retention period.

Key timing considerations and deadlines

Track dates that affect tax treatment, reporting, and sponsor processing so deductions and distributions occur in the intended periods.

Contribution Effective Date:

Date asset transfers to sponsor

Tax Deduction Year:

Contribution by 12/31 qualifies for that tax year

Annual Statement Delivery:

Sponsor issues yearly account summary

Grant Processing Window:

Recommendations typically processed within 30–90 days

Amendment Notice:

Allow 30 days for sponsor review

Milestones from setup through final distribution

A sequential milestone view helps governance and compliance tracking for fund lifecycle events.

01

Setup Fund

Sponsor creates fund account and assigns identifier.

02

Accept Contribution

Sponsor receives and records donated assets.

03

Recommend Grants

Donor submits grant recommendations to sponsor for approval.

04

Final Accounting

Sponsor issues final statements and distributes remaining assets at termination.

Common mistakes to avoid when preparing the agreement

Incomplete donor identification or TIN errors that delay tax substantiation and may trigger backup withholding or IRS inquiries.
Insufficient description or valuation of non-cash gifts leading to missing appraisal requirements and deduction disallowance by IRS.
Vague grant recommendation language that fails to state permissible recipients or timing, resulting in sponsor rejection.
Failure to confirm sponsor investment authority and distribution policy, creating disagreements over fund management or grant approvals.

Potential penalties and risks from incorrect or incomplete agreements

Deduction Denial: IRS may disallow claim

Backup Withholding: Incorrect TIN triggers withholding

Grant Rejection: Noncompliant recipient recommendations denied

Fiduciary Dispute: Sponsor-donor conflicts over control

Recordkeeping Failure: Loss of substantiation for audits

Operational Delay: Processing and distribution hold-ups

Typical eSignature vendor comparison for signing Donor Advised Fund Agreements

Compare core pricing and compliance capabilities relevant to legal agreements and tax substantiation workflows; signNow is listed first per vendor ordering rules.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about executing a Donor Advised Fund Agreement

Answers to common questions about e-signature validity, tax substantiation, notarization, amendments, and recordkeeping for DAF agreements.

Need help? Contact support

Can the agreement be e-signed?
Yes. Electronic signatures are legally binding in the U.S. under ESIGN and state UETA statutes when intent, consent, attribution, and retention are satisfied; check state exceptions for certain documents.
What proves a charitable deduction?
A sponsor-issued contemporaneous written acknowledgement or receipt describing the gift, the date, and stating whether goods or services were provided is required to support donor tax claims.
Is notarization required?
Not typically required for DAF agreements, but sponsors or state law may request notarization or RON for asset transfers or signature verification; confirm with the sponsor.
How are non-cash gifts valued?
Donors must follow IRS appraisal rules for certain non-cash gifts; agreements should describe valuation date and whether an appraisal is required to support deduction amounts.
How do I change advisor rights?
Amendments should follow the agreement’s amendment clause; sponsors often require written notice and may require updated identification or successor appointment documents.
How long must records be kept?
Retain contribution receipts and related records at least three years for IRS purposes; longer retention may be needed for HIPAA or state-specific requirements.

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