Can a Fundraising Contract be signed electronically?

Yes. Electronic signatures are legally binding under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided the four-part e-sign validity test (intent, consent, attribution, retention) is met.

Do donors need written acknowledgments for tax deductions?

Yes. Donors must receive a contemporaneous written acknowledgment for cash contributions of $250 or more to substantiate an IRS deduction; follow IRS Publication 1771 guidance when issuing receipts.

When should a contract be notarized or witnessed?

Most fundraising contracts do not require notarization, but state-specific requirements or gift instruments tied to real property may; check state rules or require notarization when authority or proof of signature is essential.

What happens if donor restrictions cannot be met?

Contracts should include reallocation or refund provisions. State charity regulators expect reasonable efforts to honor donor intent and documented steps for approved reallocation if original purpose is impossible.

How long must I keep signed fundraising contracts?

Retain contracts per federal and industry rules: a minimum of three years for tax purposes (IRC §6501(a)); healthcare-related records six years (45 CFR §164.530(j)); longer retention may apply.

Are there special privacy requirements for donor data?

Yes. Protect personal and payment data with industry-standard encryption and access controls; for healthcare-related donors, obtain HIPAA-compliant agreements and BAAs when PHI is involved.

Fundraising Contract

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FUNDRAISING CONTRACT

This Fundraising Contract (the "Agreement") is entered into as of , by and between:

Client Name:

Client Address

Fundraiser Name:

Fundraiser Address

WHEREAS

WHEREAS, Client seeks to raise funds for Client's charitable, educational or programmatic purposes as described in this Agreement; and

WHEREAS, Fundraiser represents that it has experience, personnel and relationships necessary to solicit gifts, sponsorships and contributions on behalf of Client and is willing to act as an independent contractor to perform fundraising services under the terms set forth herein; and

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

SCOPE OF WORK

Services to be Provided

Fundraiser shall perform the services described above in a professional manner consistent with industry standards and shall devote the necessary personnel and resources to meet schedule and reporting obligations set by Client.

PAYMENT TERMS

Total Compensation Payment Schedule

All payments due to Fundraiser shall be made in U.S. dollars to the payee designated by Fundraiser. Unless otherwise stated in Payment Schedule, Client shall pay an initial retainer equal to the first installment set forth above prior to commencement of services.

Late Payment Fee

TERM AND TERMINATION

Commencement Date: .

Termination Date: .

Notice Period for Termination

Either party may terminate this Agreement for material breach if the breaching party fails to cure the breach within the notice period specified above. Termination shall not relieve either party of obligations accrued prior to the effective date of termination.

CONFIDENTIALITY

Each party acknowledges that it may receive or have access to Confidential Information of the other party. "Confidential Information" includes non-public information regarding donors, fundraising strategies, financial data and donor lists. Receiving party shall not use or disclose Confidential Information except as required to perform its obligations under this Agreement. Confidential obligations shall survive termination for a period of years.

REPORTING AND RECORDS

Report Frequency Record Retention

COMPLIANCE; INDEPENDENT CONTRACTOR

Fundraiser shall comply with all applicable laws, rules and regulations governing fundraising, solicitation and data privacy. Fundraiser is an independent contractor and not an employee of Client; Fundraiser shall be responsible for all taxes, benefits and insurance relating to its personnel.

INDEMNIFICATION; LIMITATION OF LIABILITY

Each party agrees to indemnify and hold harmless the other party from claims, losses, liabilities or expenses arising out of its gross negligence, willful misconduct or material breach of this Agreement. Except for indemnification for third-party claims or liability arising from gross negligence or willful misconduct, neither party shall be liable for consequential, incidental or punitive damages.

GOVERNING LAW

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

ENTIRE AGREEMENT

This Agreement, including any exhibits and attachments expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior and contemporaneous agreements, understandings and communications, whether written or oral. No modification shall be effective unless in writing and signed by both parties.

MISCELLANEOUS

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect. The parties agree to negotiate in good faith to replace any unenforceable provision with a valid provision that achieves, to the extent possible, the original economic and legal objectives.

Client Name:

By:

Date:

Fundraiser Name:

By:

Date:

What a Fundraising Contract Is and when it applies

A Fundraising Contract is a written agreement that sets the terms between an organization or campaign and a donor, fundraiser, or third-party solicitor. It typically documents the donation amount or pledge schedule, purpose or restrictions on funds, payment and reporting terms, timelines for delivery of goods or benefits, and any services the fundraiser will provide. For organizations, the contract helps demonstrate donor intent, supports financial controls and audit trails, and provides a baseline for compliance with tax substantiation and donor-restriction rules.

Why a formal Fundraising Contract matters

A written Fundraising Contract clarifies obligations, protects donor intent, and reduces disputes by documenting consideration, restrictions, and reporting expectations. It supports tax substantiation and internal controls and helps ensure compliance with donor-protection and nonprofit governance rules under federal tax guidance and state charity laws.

Who typically prepares and signs fundraising contracts

Organizations and individuals who need clear, auditable agreements before accepting or soliciting funds commonly use these contracts.

Nonprofit development teams and finance directors responsible for gift acceptance and reporting.
Fundraising consultants or professional solicitors engaged by organizations for campaigns or events.
Donors (individuals, corporations, foundations) who place restrictions or conditions on their gifts.

Clear role allocation and signature authority in the contract reduce downstream disputes and support audit readiness.

Essential elements to include in a professional Fundraising Contract

A strong fundraising agreement organizes core terms so both parties understand deliverables, timing, and legal obligations. Include precise descriptions for money handling, reporting, conditional gifts, and termination to reduce ambiguity and support compliance.

Parties

Identify the legal entity names for donor, fundraiser, and recipient organization; include DBA names and tax ID where relevant.

Gift Description

State donation type (cash, pledge, in-kind), amount or valuation method, and any purpose restrictions or designated programs.

Payment Terms

Specify payment schedule, installment amounts, acceptable payment methods, and consequences for missed payments.

Consideration & Benefits

Describe any benefits to donor (recognition, event tickets) and whether they are taxable or reduce deductible amount.

Reporting & Use

Define reporting frequency, required financial or programmatic reports, and who receives them to meet stewardship obligations.

Termination & Remedies

Include termination rights, refund or reallocation procedures, and dispute-resolution mechanisms such as governing law and venue.

Data and security items to collect and protect

Donor Identity: Full legal name

Contact Details: Street address and email

Tax ID: EIN or SSN when required

Payment Data: Masked account or card reference

Gift Restrictions: Restricted purpose text

Audit Trail: Timestamp and signer IP

Step-by-step: completing a Fundraising Contract

Follow this sequence to prepare, review, and finalize the agreement so all parties can rely on clear terms and verification evidence.

01

Draft the terms: Describe parties, gift, payment, and restrictions clearly.
02

Confirm authority: Verify who can sign on behalf of each party.
03

Review compliance: Check tax substantiation and charity-law requirements.
04

Execute and document: Sign, date, and capture an audit trail or notarization if needed.

Configuring an online workflow for the Fundraising Contract

Set up a simple digital workflow to collect signatures, authenticate signers, and retain a verifiable audit trail.

Field	Configuration
Authentication	Email link or SMS code; use stronger ID verification for high-value gifts
Notifications	Automatic reminders and completion emails for signers
Template Library	Save reusable contract template with locked fields
Routing Order	Set signer sequence for donor, fundraiser, and finance approver

Digital signing and file format considerations

Choose a platform that supports required formats, signer authentication, and secure storage for donor records.

File types: PDF, DOCX accepted
Integrations: Salesforce, NetSuite, Google Workspace
Security: TLS in transit; AES-256 at rest

Typical eSubmission flow for a Fundraising Contract

A common e-submission sequence ensures the contract is routed, authenticated, and stored with an audit trail for compliance.

Upload document: Sender uploads the finalized contract file to the platform.
Place fields: Add signature, date, and initial fields for each signer.
Send to signers: Dispatch via secure link or email with authentication.
Store signed copy: Platform stores PDF with certificate of completion and metadata.

Time-sensitive dates and tax-related deadlines to track

Track execution, payment, acknowledgment, and tax substantiation dates to protect donor deductions and organizational compliance.

Execution Date:

Date signatures are complete and obligations begin.

Payment Due Date:

When donor installments must be received per the contract.

Acknowledgment Issued:

Provide written donation acknowledgment to donor promptly; required for IRS claims over $250.

Gift Reallocation Deadline:

Specify notice timing if restricted purpose cannot be met.

Recordkeeping Retention:

Retain documentation to meet IRS and state charity requirements.

Key milestones from draft to fulfillment

Sequence milestones so every party knows when review, approval, and delivery must occur.

01

Drafting

Define terms, restrictions, and payment schedule before solicitation.

02

Internal Approval

Obtain organizational sign-off and, if required, board authorization.

03

Execution

Obtain signatures and capture the audit trail or notarization.

04

Fulfillment & Reporting

Send receipts, deliver benefits, and produce required stewardship reports.

Common preparation errors to avoid

Using vague restriction language that creates donor disputes and reallocation problems.
Failing to document payment schedules precisely, which can lead to collection and accounting issues.
Omitting signer authority checks so signatures lack proper legal binding for the organization.
Neglecting to issue contemporaneous written acknowledgments required for tax deductions over $250.

Potential legal and tax risks from an incorrect contract

Deduction Risk: Donor denial of tax deduction

Breach Exposure: Contract damages and refund obligations

Regulatory Action: State attorney general inquiries

Reputational Harm: Donor trust erosion

Accounting Misstatement: Incorrect recognition of revenue

Audit Costs: Increased review and remediation expenses

Common eSignature vendor pricing and core capabilities for contract signing

Compare basic pricing and capabilities for digital signing providers; signNow is listed first per vendor comparison conventions.

	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

Practical examples of fundraising contract use

These short scenarios show how contracts resolve common fundraising needs and evidence audit-ready commitments.

University Campaign

A university documents a five-year pledge for scholarship endowment with clear installment dates and reporting expectations.

The pledge includes naming rights contingent on full payment.
The contract required board approval, defined restricted-use accounting, and set annual stewardship reporting to the donor for accountability and tax substantiation.

Community Health Foundation

A foundation accepts a restricted gift to fund a mobile clinic with deliverable milestones tied to payments.

Payments release on milestone verification.
The contract specified inspection, reporting, and reallocation steps if milestones were not met, protecting both donor intent and program integrity.

Frequently asked questions about Fundraising Contracts

Answers to common legal, technical, and compliance questions encountered when preparing or signing fundraising agreements.

Need help? Contact support

Can a Fundraising Contract be signed electronically?
Yes. Electronic signatures are legally binding under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided the four-part e-sign validity test (intent, consent, attribution, retention) is met.
Do donors need written acknowledgments for tax deductions?
Yes. Donors must receive a contemporaneous written acknowledgment for cash contributions of $250 or more to substantiate an IRS deduction; follow IRS Publication 1771 guidance when issuing receipts.
When should a contract be notarized or witnessed?
Most fundraising contracts do not require notarization, but state-specific requirements or gift instruments tied to real property may; check state rules or require notarization when authority or proof of signature is essential.
What happens if donor restrictions cannot be met?
Contracts should include reallocation or refund provisions. State charity regulators expect reasonable efforts to honor donor intent and documented steps for approved reallocation if original purpose is impossible.
How long must I keep signed fundraising contracts?
Retain contracts per federal and industry rules: a minimum of three years for tax purposes (IRC §6501(a)); healthcare-related records six years (45 CFR §164.530(j)); longer retention may apply.
Are there special privacy requirements for donor data?
Yes. Protect personal and payment data with industry-standard encryption and access controls; for healthcare-related donors, obtain HIPAA-compliant agreements and BAAs when PHI is involved.

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