Is an electronic signature valid?

Yes. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA in most states, provided intent, consent, attribution, and retention requirements are met.

When is notarization required?

Notarization is rarely required for a gift memorandum itself, but state rules for related instruments (deeds, certain POAs) may require notarization or witnesses, so verify with counsel.

What if the donor uses securities?

Obtain broker transfer confirmations and record share ticker, quantity, transfer date, and valuation; attach documentation needed for IRS substantiation.

How long to keep records?

Follow IRS retention minimums (3 years) and longer industry requirements (HIPAA 6 years) and retain signed memoranda for at least the applicable statutory period.

Can I amend a memorandum?

Yes. Create a dated amendment signed by the same parties, or draft a new memorandum stating it supersedes the prior one; preserve both for audit trails.

Who should review the document?

Finance and legal counsel should review gift restrictions, valuation methods, and acceptance language for significant or restricted gifts.

Electronic Signature
Templates
Finance
Financial Memorandum of Gift

Financial Memorandum of Gift

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FINANCIAL MEMORANDUM OF GIFT

Date of Memorandum:

Donor Information

Donor Name Donor Address

Donor Email

Donor Phone

Donor Tax Identification Number (if applicable)

Recipient Information

Recipient Organization Recipient Address

Recipient Contact

Recipient Phone / Email

Gift Details

The undersigned Donor hereby irrevocably transfers and delivers to Recipient the gift described below, subject to the terms and conditions of this Memorandum.

Gift Amount (or estimated fair market value if non-cash)

Gift Date: — Gift Type: Cash Check Electronic Transfer Marketable Securities Other

If non-cash or securities, provide description, number of shares, class, and basis for valuation Payment / Delivery Instructions

Installment Gift: Yes

Number of Installments

First Payment Date

Final Payment Date

Designation and Purpose

Designated Program, Fund, or Purpose

Restrictions, Conditions and Reallocation

The Donor declares that the gift is given subject to the designation set forth above. Recipient agrees to apply the gift in accordance with Donor's stated purpose. If compliance with the stated purpose becomes impracticable, impossible, or inconsistent with Recipient's mission, Recipient shall have the right to reallocate the gift to a closely related program or purpose consistent with the original intent of the Donor, after providing written notice to the Donor and a reasonable opportunity to confer. All restrictions shall be construed to permit reasonable administrative use of funds necessary to effectuate the designated purpose.

Representations and Warranties

The Donor represents and warrants that the Donor is the lawful owner of the gift, has full right and authority to make this transfer, and that the gift is free and clear of any liens, encumbrances, or adverse claims. If the gift consists of securities or other non-cash property, the Donor warrants that such property is transferable and that the Donor will execute and deliver any documentation reasonably necessary to complete the transfer.

Tax Acknowledgment and Valuation

Recipient will, upon request and in accordance with law, provide a contemporaneous written acknowledgment of the gift describing the items transferred and the date of receipt. Recipient does not provide tax, legal, or accounting advice. Donor acknowledges that it is the Donor's sole responsibility to obtain an independent valuation of any non-cash gift and to consult a tax advisor regarding the tax consequences of this gift.

Acceptance and Use

Recipient hereby accepts the gift and agrees to use and administer the gift in accordance with the terms and conditions set forth in this Memorandum. Recipient's acceptance is subject to the internal policies and authorizations required by Recipient and applicable law. Recipient may invest and manage any principal in accordance with its investment policies.

Miscellaneous

Governing Law: This Memorandum shall be governed by and construed in accordance with the laws of the state of jurisdiction specified by Recipient's governing documents. This Memorandum constitutes the entire agreement with respect to the subject matter hereof and may be amended only by a written instrument executed by both Donor and an authorized representative of Recipient. This Memorandum shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.

Additional Terms or Notes

Signatures

Donor:

By:

Date:

Recipient (Authorized Representative):

Title:

By:

Date:

What a Financial Memorandum of Gift Is and When It’s Used

A Financial Memorandum of Gift is a written record that documents a donor's transfer of funds or financial assets to a recipient organization or individual. It specifies donor identity, the asset or amount given, the gift's intended purpose or restrictions, the effective date, and any conditions or reporting obligations. Organizations use the memorandum to substantiate donor intent, support tax deductions, inform accounting and audit trails, and preserve evidence of restrictions for stewardship and compliance. When completed correctly it assists both donor and recipient in recordkeeping and regulatory review.

Why a Clear Memorandum Matters for Donors and Recipients

A precise Financial Memorandum of Gift reduces ambiguity about purpose, usage restrictions, and reporting responsibilities, which helps donors claim tax benefits and recipients honor donor intent.

Who Typically Prepares and Signs a Financial Memorandum of Gift

The memorandum creates a single authoritative record that serves donors, recipients, accountants, and auditors alike.

Nonprofit development offices and advancement teams handling major gifts and restricted funds.
Private donors, family offices, and trustees documenting transfers of cash, securities, or pledged funds.
Legal and finance teams preparing disclosure and substantiation for audits and tax reporting.

Core Elements to Include in a Professional Memorandum

A complete Financial Memorandum of Gift contains specific sections that make the gift traceable, enforceable, and easy to process across accounting and legal teams.

Donor Details

Full legal name, tax identification number, mailing address, and contact information so the donor can be identified and substantiation requirements met for tax purposes and audits.

Recipient Identification

Legal name of the receiving organization, EIN or TIN for charities, address, and authorized representative details to ensure funds are delivered and recorded correctly by the recipient.

Gift Description

Clear description of the asset type (cash, check, securities, wire), exact dollar amount or number of shares, and any transfer identifiers such as stock certificates or wire confirmation.

Purpose and Restrictions

State any donor-imposed restrictions, designated program, or expendability terms. If unrestricted, say so explicitly to guide accounting and donor reporting.

Effective Date and Consideration

Specify the date the gift is effective and note any conditions, installment schedule, or consideration received by the donor to determine tax treatment and recognition timing.

Signatures and Acknowledgement

Include signature blocks for donor and recipient, printed names, titles, and dates. Note any witness or notary requirements applicable under state law.

Step-by-Step: Completing the Financial Memorandum of Gift

Follow these sequential steps to prepare, validate, and finalize the memorandum so it supports tax substantiation and internal controls.

01

Draft the Memorandum: Populate donor, recipient, asset details, purpose, and effective date.
02

Confirm Valuation: Attach appraisal or broker confirmation for noncash gifts when required.
03

Authenticate Signers: Obtain signatures, witness attestations, or notarization as applicable.
04

Distribute Copies: Provide donor and recipient signed copies and retain originals for records.

How to Configure a Digital Workflow for Online Completion

Set up a digital workflow to collect signatures securely, attach supporting documents, and route the memorandum to accounting and legal teams.

Field	Configuration
Signature Type	Electronic signature with audit trail
Authentication	Email link, SMS code, or stronger ID verification
Attachments	Upload appraisal, wire confirmation, or broker letter
Routing	Auto-send to finance, legal, and donor contact

Where to Send and File the Completed Memorandum

Knowing destination points helps the recipient meet accounting and compliance obligations and ensures donors receive proper acknowledgment.

To Donor: Provide a signed copy for tax records and acknowledgement.
To Recipient Finance: File copy with gift entry and accounting ledger.
To Legal Counsel: Send restricted gift language for acceptance review when applicable.
To Audit File: Retain original with attachments for internal and external audit.

Digital Signing and Platform Considerations

Ensure the platform you select can export a tamper-evident copy, provide certificate-of-completion data, and meet any applicable privacy or HIPAA requirements.

Authentication: Email, SMS, KBA or stronger
File Formats: PDF, DOCX, and embedded metadata
Integrations: Connects with CRM and accounting systems

Essential Data to Capture for Compliance and Audit Trails

Donor Name: Full legal name

Donor TIN: Tax ID when required

Recipient EIN: Organization tax ID

Gift Amount: Exact dollar value

Effective Date: MM/DD/YYYY

Signature Data: Signer, timestamp, IP

Key Risks and Consequences of Incomplete or Incorrect Memoranda

Deduction Denial: Loss of deduction — IRC §170(f)(8)

Information-Return Penalty: Penalties under IRC §6721 for incorrect filings

Breach Claims: Civil liability for misapplied restricted gifts

Audit Exposure: Increased audit risk and document requests

Privacy Violation: Improper TIN handling triggers privacy issues

Acceptance Delay: Recipient may refuse incomplete gifts

Common Pitfalls to Avoid When Preparing the Memorandum

Vague purpose language that fails to state whether a gift is restricted or unrestricted, creating downstream accounting and compliance disputes.
Missing or incorrect tax identifiers (EIN/TIN) that prevent proper acknowledgement and can trigger backup withholding or rejection.
Failing to include effective date or conditional language, which complicates recognition of the gift for tax and financial reporting.
Not attaching valuation or transfer documentation for noncash gifts, leaving the recipient unable to substantiate value for IRS or auditors.

Timing Considerations and Tax-Related Deadlines to Keep in Mind

Observe donor substantiation rules and IRS filing dates to ensure the memorandum supports tax reporting and deduction claims.

Donor Substantiation:

Donors need written acknowledgement for gifts $250+ to claim deductions

Form 8283 Attachment:

Noncash gifts over $500 may require Form 8283 with return

Income Tax Return:

File Form 1040 by April 15 (extensions apply)

1099/Info Returns:

Follow Jan 31/Feb 28/Mar 31 deadlines for applicable forms

Record Retention:

Retain acknowledgements for at least the IRS-prescribed period

How Organizations Use a Financial Memorandum of Gift in Practice

Real-world scenarios illustrate how the memorandum functions for different gift types and organizational needs.

University Major Gift

A donor pledges $500,000 for an endowed scholarship

The development office records purpose and payment schedule
The memorandum plus wire confirmations and donor acknowledgement support tax deduction and board reporting.

Transfer of Securities

An individual transfers 1,000 shares to a charity

Broker confirmation and share count document valuation
The memorandum records share details, transfer date, and donor intent for accounting and substantiation.

eSignature Pricing and Feature Comparison for Executing Gift Memoranda

Compare typical vendor pricing and feature differences relevant to signing, bulk distribution, HIPAA compliance, and envelope limits when digitizing memorandum workflows.

	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	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently Asked Questions and Troubleshooting

Answers to common questions about execution, enforceability, and recordkeeping for a Financial Memorandum of Gift.

Need help? Contact support

Is an electronic signature valid?
Yes. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA in most states, provided intent, consent, attribution, and retention requirements are met.
When is notarization required?
Notarization is rarely required for a gift memorandum itself, but state rules for related instruments (deeds, certain POAs) may require notarization or witnesses, so verify with counsel.
What if the donor uses securities?
Obtain broker transfer confirmations and record share ticker, quantity, transfer date, and valuation; attach documentation needed for IRS substantiation.
How long to keep records?
Follow IRS retention minimums (3 years) and longer industry requirements (HIPAA 6 years) and retain signed memoranda for at least the applicable statutory period.
Can I amend a memorandum?
Yes. Create a dated amendment signed by the same parties, or draft a new memorandum stating it supersedes the prior one; preserve both for audit trails.
Who should review the document?
Finance and legal counsel should review gift restrictions, valuation methods, and acceptance language for significant or restricted gifts.

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