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Financial Fundraising Contract

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FINANCIAL FUNDRAISING CONTRACT

Parties and Contact Information

This Financial Fundraising Contract (the "Agreement") is made and entered into between:

Individual Corporation LLC Other:

Individual Corporation LLC Other:

Recitals

WHEREAS, Client seeks to retain Fundraiser to solicit contributions, grants, pledges and other funds (collectively, "Contributions") for Client's stated purpose; and WHEREAS, Fundraiser has experience and expertise in fundraising strategy, donor outreach, campaign management and related services; the parties agree as follows.

Engagement; Scope of Services

1. Engagement. Client hereby engages Fundraiser, and Fundraiser accepts, to provide fundraising services described in this Agreement. Services include campaign planning, donor identification, solicitation, events coordination, preparation of solicitation materials, tracking of Contributions, and reporting. Specific tasks and deliverables will be set forth in the Scope of Services below.

Fundraising Goals, Term, and Schedule

2. Campaign Goal. The parties agree the initial fundraising goal is: in Contributions to be raised during the Term.

3. Term. This Agreement commences on and continues until unless earlier terminated in accordance with this Agreement.

Compensation and Fee Schedule

4. Compensation. Client shall pay Fundraiser fees as set forth in the Fee Schedule. Fees are calculated on Contributions actually received and deposited by Client. The parties may agree to a retainer, milestone payments, or a success-based commission. Payment obligations survive termination for Contributions received after termination if such Contributions result from Fundraiser's efforts prior to termination.

Description Quantity Unit Rate Amount
Subtotal
Tax (if applicable)
Total

5. Commission on Funds Raised. In addition to any retainer or fixed fees, Fundraiser shall be entitled to a commission equal to of all Contributions actually received and legally unrestricted for Client's use. Commission is calculated after refunds and tax withholding, and is payable within days following receipt by Client.

Accepted payment methods: Wire Transfer Check ACH Card

Late payments shall incur a late fee equal to the lesser of 1.5% per month or the maximum permitted by law. Fees disputed in good faith must be submitted in writing within 15 days of invoice receipt; undisputed portions remain payable.

Expenses and Reimbursements

6. Pre-approved out-of-pocket expenses incurred by Fundraiser in the performance of services (e.g., travel, venue rental, printing) shall be reimbursed by Client upon submission of receipts. Expenses in excess of require written pre-approval from Client.

Records, Reports and Access

7. Fundraiser shall maintain accurate records of solicitations and Contributions and provide Client with periodic written reports no less frequently than detailing funds solicited, donors contacted, commitments, and disbursements. Client shall have reasonable access to records solely for audit and verification purposes.

Confidentiality and Data Protection

8. Both parties shall keep confidential all non-public donor data, strategic plans and financial information disclosed in connection with this Agreement. Fundraiser shall use such information only for the purpose of performing services and shall implement commercially reasonable safeguards to protect donor personal data.

Compliance, Representations and Warranties

9. Each party represents and warrants that it has the authority to enter into this Agreement, that fundraising activities will comply with applicable law and charitable solicitation regulations, and that Client holds all required registrations and tax-exempt status where relevant. Fundraiser warrants that it will conduct services professionally and in accordance with industry standards.

Termination

10. Either party may terminate this Agreement for material breach upon 30 days' written notice and opportunity to cure. Client may terminate without cause upon 60 days' written notice, subject to payment for work performed and any earned commissions on Contributions resulting from Fundraiser's prior efforts.

Indemnification; Limitation of Liability

11. Each party shall indemnify and hold harmless the other against third-party claims arising from its breach, negligence or willful misconduct. Except for indemnification for willful misconduct or breaches of confidentiality, neither party shall be liable for consequential, punitive or indirect damages. Aggregate liability shall be limited to the total fees paid to Fundraiser under this Agreement in the 12 months preceding the claim.

Insurance

12. Fundraiser shall maintain commercial general liability insurance and professional liability insurance in amounts consistent with industry practice and provide evidence of such insurance upon Client's request.

Notices

13. All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below or to such other address as a party designates in writing.

Dispute Resolution; Governing Law

14. The parties agree to attempt to resolve disputes in good faith by negotiation. If unresolved, disputes shall be submitted to binding arbitration with a single arbitrator experienced in commercial contracts. The arbitrator's decision shall be final and binding. This Agreement shall be governed by the substantive laws of the state specified by the parties.

Miscellaneous

15. Entire Agreement. This Agreement (including any attachments and schedules) constitutes the entire agreement between the parties and supersedes prior understandings. Amendments must be in writing and signed by both parties. If any provision is invalid, the remainder shall remain in force.

Acknowledgment

By signing below, each party certifies that it has the authority to enter into this Agreement, that it has read and understands the terms herein, and that this Agreement constitutes a binding obligation enforceable according to its terms.

Client:

By:

Date:

Fundraiser:

By:

Date:

Enter text

What a Financial Fundraising Contract Is and When It Applies

A Financial Fundraising Contract is a written agreement documenting the terms between a fundraising entity (charity, nonprofit, political committee, or commercial fundraiser) and donors, sponsors, or service providers. It covers commitments such as pledge amounts, payment schedules, permitted uses of funds, reporting obligations, and termination rights. The contract establishes responsibilities for acceptance, processing, reimbursement, and any fees or commissions. Parties often use it to document conditional pledges, installment gifts, matching fund arrangements, or third-party fundraising services where clarity about timing, tax treatment, and compliance is essential for both financial and legal records.

Why a Clear Fundraising Contract Matters

A clear Financial Fundraising Contract reduces ambiguity about donor intent, accelerates fund receipt, and supports compliance with tax and charitable solicitation rules. It protects both the fundraiser and donor by documenting scope, payment mechanics, permitted uses, and reporting obligations while creating an auditable record for accounting and regulatory review.

Why a Clear Fundraising Contract Matters

Who Typically Prepares and Signs These Contracts

Several groups routinely prepare or sign Financial Fundraising Contracts; roles vary by organization size and structure.

  • Fundraising professionals and development directors who negotiate pledge terms and donor restrictions for institutional gifts.
  • Donors and corporate sponsors who need a written commitment outlining pledge timing, restrictions, and tax documentation.
  • Legal and finance teams who review contract language for compliance, reporting, and internal control alignment.

Make sure the appropriate signatory for each party signs in the authority section to avoid execution disputes.

Step-by-Step: Completing a Financial Fundraising Contract

Follow these core steps to prepare, review, and execute the contract so funds flow as intended and records remain audit-ready.

  • 01
    Draft Terms: Record parties, amounts, schedule, and use restrictions clearly.
  • 02
    Review Compliance: Confirm tax, solicitation, and donor disclosure obligations.
  • 03
    Authorize Signers: Verify signatory authority and corporate approval as required.
  • 04
    Execute and Archive: Obtain signed copies, retain originals, and log in records.

Essential Clauses to Include in a Professional Contract

The following clauses form the backbone of enforceable fundraising agreements and reduce common sources of dispute and compliance risk.

Parties

Identify full legal names, business type, and contact details for each party. Specify whether the fundraiser acts as agent or principal to clarify liability and reporting responsibilities.

Gift Description

Describe the gift or pledge in plain language, including amount, in-kind items if any, and whether the commitment is conditional or revocable under any stated circumstances.

Payment Terms

State payment method, schedule, late payment remedies, and consequences of nonpayment. Clarify who bears processing fees and whether matching contributions apply.

Use and Restrictions

Specify program, project, or fund designation, reporting frequency, and procedures for changing or releasing restricted funds, including donor consent requirements.

Termination

Set termination events, refund mechanics for unspent restricted funds, and survivor obligations for partially completed projects or campaigns.

Representations and Warranties

Include donor authority warranties, compliance assurances, indemnities, and governing law to limit exposure and clarify dispute resolution.

Security and Compliance Considerations for Fundraising Contracts

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Audit Trail: Timestamps, IP, signer actions logged
HIPAA: BAA required for PHI in healthcare donations
ESIGN / UETA: Electronic signatures legally recognized
SOC 2: SOC 2 Type II available on request
Access Controls: Role-based permissions and SSO support

Common Preparation Errors to Avoid

  • Vague purpose language that leaves fund use open to differing interpretations and increases audit risk.
  • Missing or inconsistent signer authority documentation which can invalidate execution or trigger disputes later.
  • Incorrect payment routing details that cause delays or returned payments and complicate donor reconciliation.
  • Failure to collect or store donor consent for electronic records when required for consumer-facing transactions.

Potential Legal and Financial Consequences of Errors

Tax Penalties: Incorrect donor/recipient reporting can trigger penalties and backup withholding
Revocation Risk: Ambiguous terms can enable donor revocation or legal challenge
Contract Liability: Unauthorized signatories may create unenforceable obligations
Regulatory Action: Improper solicitation may prompt state enforcement
Accounting Errors: Misstated revenue recognition and audit findings
Data Breach: Exposure of donor data leads to legal and reputational costs

Typical Execution and Routing Workflow

A standard online signing workflow simplifies review, approval, and archival while preserving a complete audit trail for compliance.

  • Upload Document: Sender uploads the contract in PDF or DOCX format.
  • Place Fields: Add signature, date, and conditional fields where needed.
  • Authenticate Signers: Choose email, SMS, or stronger authentication methods.
  • Complete Signing: System captures timestamps and delivers signed copies.

Configuring an Online Fundraising Contract Workflow

Key settings ensure the document routes correctly, captures required data, and remains compliant with recordkeeping rules.

Field Configuration
Signature Placement Assign signer roles and lock fields after signing
Authentication Use email link, SMS code, or KBA where required
Routing Order Set sequential or parallel signing order
Retention Policy Enable secure archival and export formats

Key Dates and Deadlines to Track

Track execution, payment milestones, and any tax-reporting deadlines tied to gifts or vendor payments to avoid penalties.

Execution Date Requirement:

Record the effective date on signature pages at signing time.

Payment Milestones:

Map installment dates and follow up 7–10 days before expected receipts.

1099-NEC Deadline:

Independent contractor payments reported to recipients and IRS by Jan 31 each year.

Donor Acknowledgment:

Send acknowledgement letters promptly to support donor tax deductions.

Archival Window:

Retain executed contract copies according to legal retention requirements.

Milestones from Negotiation to Closed Records

Sequence the contract lifecycle so approvals, receipts, and recordkeeping happen in predictable stages.

01

Negotiation

Finalize terms, restrictions, and payment schedule before draft circulation.

02

Internal Approvals

Obtain finance and legal approvals before sending for signature.

03

Execution

All authorized parties sign and date the agreement.

04

Post-Signing Tasks

Issue donor acknowledgments, post receipts, and archive records.

Comparing eSignature Vendors for Fundraising Contract Workflows

A neutral feature and price snapshot for common eSignature plans. signNow is listed first per comparison conventions; plan features and starting prices vary by vendor.

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 Yes, 7-day 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 and Troubleshooting

Answers to typical execution, signature, and recordkeeping questions encountered when using a Financial Fundraising Contract.


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