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Fundraising Legal Agreement

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FUNDRAISING LEGAL AGREEMENT

This Fundraising Legal Agreement ("Agreement") is made as of by and between Organization Name: , an entity organized as Corporation Nonprofit LLC (hereinafter "Organization"), and Fundraiser Name: , an individual or entity organized as Individual Consultant Agency (hereinafter "Fundraiser"). Organization and Fundraiser may be referred to individually as a "Party" and collectively as the "Parties."

RECITALS

WHEREAS, Organization conducts charitable, educational, or other mission-driven activities and seeks to solicit funds and contributions to support its programs; and

WHEREAS, Fundraiser provides fundraising, donor outreach, campaign management and related services and has represented that it has the skills, personnel and compliance procedures necessary to conduct lawful fundraising on behalf of Organization; and

WHEREAS, the Parties desire to set forth the terms and conditions under which Fundraiser will provide fundraising services to Organization.

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

1. DEFINITIONS

1.1 "Campaign" means any solicitation, event, appeal or program for which Fundraiser provides services under this Agreement, as further described in the applicable Statement of Work.

1.2 "Net Contributions" means gross contributions actually received by Organization attributable to Fundraiser's activities, less refunds, chargebacks, and direct transaction fees (but excluding overhead allocations).

2. SCOPE OF SERVICES

2.1 Fundraiser shall provide the fundraising services described in one or more written Statements of Work executed by the Parties (each a "SOW"). Fundraiser's obligations may include donor solicitation, campaign planning, materials preparation, event coordination, digital fundraising, and donor stewardship as specified in each SOW.

2.2 Fundraiser shall perform services in a professional manner consistent with industry standards and in accordance with all applicable laws, regulations and ethical guidelines governing charitable solicitations and fundraising practices.

3. COMPENSATION AND PAYMENT

3.1 Fee Structure: Organization shall compensate Fundraiser as set forth in the applicable SOW. Compensation may include a percentage of Net Contributions, flat fees, retainers, or a combination. Primary compensation terms for the initial engagement are: Percentage Fee: ; Flat Fee: $.

3.2 Payment Timing: Organization shall remit payments to Fundraiser within days following receipt of an invoice and reconciliation of contributions. Payments shall be accompanied by a report identifying contributors and Net Contributions attributable to Fundraiser's efforts, subject to redaction of personally identifiable donor information as required by law or donor request.

3.3 Taxes: Each Party is responsible for its own taxes arising from compensation. Fundraiser shall provide appropriate tax identification information and forms upon request.

4. TERM AND TERMINATION

4.1 Term: This Agreement shall commence on the effective date set forth above and shall continue for a period of months, unless earlier terminated pursuant to this Section.

4.2 Termination for Cause: Either Party may terminate this Agreement for material breach by the other Party if such breach remains uncured for thirty (30) days after written notice specifying the breach. Termination shall not relieve Organization of its obligation to pay fees earned through the effective date of termination.

4.3 Termination for Convenience: Organization may terminate any SOW for convenience upon thirty (30) days' prior written notice and shall pay Fundraiser for all services performed and expenses incurred through the effective date of termination, plus any non-cancellable obligations.

5. CONFIDENTIALITY

5.1 Definition: "Confidential Information" means non-public information disclosed by one Party to the other that is designated as confidential or that reasonably should be understood to be confidential given its nature.

5.2 Obligations: Each Party shall maintain the confidentiality of Confidential Information and shall not use or disclose such information except as necessary to perform its obligations under this Agreement or as required by law. Confidential information does not include information that becomes publicly available without breach by the receiving Party.

6. COMPLIANCE WITH LAWS; FUNDRAISING PRACTICES

6.1 Permits and Registrations: Fundraiser shall, at its expense, obtain and maintain all licenses, registrations and permits required by applicable law for fundraising activities and shall comply with all charitable solicitation statutes and regulations applicable to its performance.

6.2 Donor Restrictions and Privacy: Fundraiser shall comply with donor restrictions on use of funds and with Organization's donor privacy policy. Fundraiser shall not represent that it may unilaterally alter the use of contributions or bind Organization to any commitment absent Organization's express written consent.

7. USE OF FUNDS; RECORDS AND AUDIT

7.1 Receipt and Use: All contributions received on behalf of Organization are the property of Organization. Organization retains full discretion over the final use of contributed funds, subject to any donor-imposed restrictions accepted by Organization.

7.2 Records: Fundraiser shall maintain accurate records of solicitations, contributions, refunds and related communications for a period of not less than three (3) years and shall make such records available to Organization upon reasonable request for purposes of reconciliation or audit.

8. REPRESENTATIONS AND WARRANTIES

8.1 Mutual Representations: Each Party represents that it has full power and authority to enter into this Agreement and that the execution and performance will not violate any law or agreement to which it is subject.

8.2 Fundraiser Warranties: Fundraiser warrants that it will (a) perform services in a competent and professional manner; (b) not engage in deceptive or misleading solicitation practices; and (c) disclose any conflicts of interest or compensation arrangements with third parties that may affect fundraising outcomes.

9. INDEMNIFICATION; LIMITATION OF LIABILITY

9.1 Indemnification by Fundraiser: Fundraiser shall indemnify, defend and hold harmless Organization and its directors, officers, employees and agents from and against any third-party claims, liabilities, losses, damages and expenses (including reasonable attorneys' fees) arising from Fundraiser's breach of this Agreement, negligence, willful misconduct, or violation of law.

9.2 Limitation of Liability: Except for liability resulting from willful misconduct or indemnifiable third-party claims, neither Party shall be liable to the other for consequential, punitive, special or indirect damages, and aggregate liability shall be limited to amounts actually paid to Fundraiser under this Agreement during the twelve (12) months preceding the claim.

10. INSURANCE

Fundraiser shall maintain commercial general liability and, if applicable, professional liability insurance coverage in amounts reasonably appropriate to Fundraiser's services and shall provide certificates of insurance to Organization upon request.

11. NOTICES

All notices 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. Notice is effective upon delivery if delivered by hand or by nationally recognized overnight carrier, or three (3) business days after mailing by certified mail.

12. AMENDMENT; WAIVER; ASSIGNMENT

12.1 Amendment: This Agreement may be amended only by a written instrument executed by duly authorized representatives of both Parties.

12.2 Waiver: No waiver of any breach shall be effective unless in writing and signed by the Party granting the waiver. A waiver of one breach shall not constitute a waiver of any other breach.

12.3 Assignment: Neither Party may assign this Agreement or any of its rights hereunder without the prior written consent of the other Party, except that Organization may assign this Agreement in connection with a merger, acquisition or sale of substantially all its assets.

13. GOVERNING LAW; DISPUTE RESOLUTION

13.1 Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the state identified as the Governing Law State: without regard to its conflict of laws principles.

13.2 Dispute Resolution: The Parties shall attempt to resolve disputes in good faith through negotiation. If unresolved within sixty (60) days, disputes shall be resolved by binding arbitration before a single arbitrator in the county of Organization's principal place of business, in accordance with commercially reasonable arbitration procedures.

14. ENTIRE AGREEMENT; SEVERABILITY; COUNTERPARTS

14.1 Entire Agreement: This Agreement, together with any executed SOWs, constitutes the entire agreement between the Parties concerning the subject matter hereof and supersedes all prior agreements, understandings and representations, whether written or oral.

14.2 Severability: If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect and the Parties shall negotiate in good faith a replacement provision that effectuates the original intent.

14.3 Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Electronic or facsimile signatures shall be effective to bind the Parties.

15. MISCELLANEOUS

15.1 Independent Contractor: Fundraiser is an independent contractor and not an employee, partner, joint venturer or agent of Organization for any purpose. Nothing in this Agreement shall be construed to create a fiduciary duty beyond the obligations expressly set forth herein.

15.2 Publicity: Fundraiser shall not use Organization's name, logos or trademarks in publicity or promotional materials without Organization's prior written consent; provided, however, that Fundraiser may acknowledge the relationship in customary professional listings.

Organization

Print Name:

By:

Date:

Title:

Fundraiser

Print Name:

By:

Date:

Title:

Enter text✕

What the Fundraising Legal Agreement Covers

A Fundraising Legal Agreement is a written contract that sets the terms between parties involved in raising money for a cause, campaign, or project. It typically identifies the fundraiser, the recipient organization or beneficiary, the scope of fundraising activities, compensation or fee structure, reporting and accounting obligations, use of funds, and termination conditions. The agreement clarifies who may solicit donations, how funds are collected and disbursed, responsibilities for donor acknowledgements and tax receipts, and the remedies available for breach or mismanagement.

Why a Clear Agreement Matters for Fundraising

A well-drafted agreement reduces legal and reputational risk by documenting roles, financial controls, and donor treatment. It protects donor intent, ensures accurate reporting, and helps resolve disputes quickly while meeting regulatory and tax obligations across federal and state rules.

Why a Clear Agreement Matters for Fundraising

Who Typically Uses a Fundraising Legal Agreement

Common users include nonprofit boards, third-party fundraisers, event organizers, sponsors, and in-house development teams seeking formalized responsibilities.

  • Nonprofit leaders and boards managing external fundraising contractors or campaigns, ensuring compliance and donor stewardship.
  • Professional fundraisers and consultants who need defined payment terms, expense reimbursement rules, and reporting obligations.
  • Corporate sponsors and institutional donors requiring written assurances about use of funds and public recognition.

Parties should confirm signatory authority and, where applicable, whether additional approvals (board resolution or committee sign-off) are required before execution.

Who Signs and Why

Executive Director

Signs on behalf of a nonprofit when empowered by the board; confirms acceptance of terms, fiscal controls, and reporting commitments. Their signature binds the organization and signals managerial accountability for fundraising results and compliance.

Fundraising Contractor

Signs to accept the scope, compensation, and confidentiality provisions. The contractor’s signature confirms agreement to comply with donor restrictions, submit timely reports, and adhere to any background-check or licensing conditions.

Core Elements to Include in the Agreement

A complete Fundraising Legal Agreement bundles operational, financial, and legal terms so both parties understand expectations and compliance obligations.

Parties

Full legal names and entity types for each party, including mailing addresses and tax identification numbers, so the agreement clearly identifies who has rights and obligations under the contract.

Scope

A defined description of permitted fundraising activities, geographic limits, campaign materials, and any prohibited solicitations so actions fall inside agreed boundaries and donor expectations.

Compensation

Fee structure, commission rates, expense reimbursement rules, payment schedule, and conditions for withholding or clawback to avoid later disputes over earnings and costs.

Use of Funds

How donations will be applied, designation rules for restricted gifts, and procedures for returning or reallocating funds if donor restrictions cannot be fulfilled.

Reporting

Frequency and format of financial reports, donor lists, receipts and audit access so the recipient can demonstrate compliance and donors receive proper acknowledgements.

Termination

Grounds for termination, wind-down responsibilities, final accounting, and dispute resolution methods to limit disruption and protect donor funds if the relationship ends.

Step-by-Step: Completing and Executing the Agreement

Follow these practical steps to prepare, review, and execute a compliant fundraising agreement.

  • 01
    Draft core terms: Define parties, scope, fees, fund use.
  • 02
    Confirm authority: Verify signers have board or corporate authority.
  • 03
    Review compliance: Check donor restrictions, tax, and privacy rules.
  • 04
    Execute and archive: Sign, date, and store executed copies securely.

Options for Customising an Online Agreement Workflow

Configure fields, routing, and authentication so the online execution matches your internal controls and audit needs.

Field Configuration
Signature Field Require typed or drawn signature; enable timestamping
Required Fields Make names, EIN, effective date mandatory
Routing Order Set sequential or parallel signing flows
Authentication Choose email, SMS code, or KBA as needed

Digital Signing and File Formats

Ensure your signing platform supports PDF/DOCX formats, secure transmission, and an auditable completion certificate.

  • Formats Supported: PDF, DOCX, and fillable forms
  • Security Standards: TLS 1.2/1.3; AES-256 storage
  • Integrations: CRM and cloud storage ready

Use a vendor with audit trails, optional advanced signer authentication, and retention-friendly export options to maintain evidentiary value.

Where to Send and How Execution Typically Flows

Common routing paths and destinations for signed fundraising agreements ensure each party receives an authenticated copy.

  • Upload Document: Sender uploads and maps signature fields
  • Add Signers: Enter emails and set signing order
  • Send for Signature: Signers receive link or email invite
  • Store Executed Copy: All parties receive PDF with audit trail

Key Timeframes and Reporting Deadlines

Track important dates from campaign launch through final accounting and donor acknowledgements to remain compliant with tax and charity rules.

Campaign Start Date:

Date the fundraising activities may begin under the agreement

Interim Reports:

Monthly or quarterly financial updates as specified

Final Accounting:

Delivered within specified days after campaign close

Donor Receipts:

Issue timely written acknowledgements for tax-deductible gifts

Tax Filings:

Provide documentation needed for annual nonprofit returns

Common Pitfalls When Preparing the Agreement

  • Leaving donor restrictions vague, which can lead to misuse claims and donor dissatisfaction.
  • Failing to confirm signer authority and board approvals before execution, causing enforcement or banking issues.
  • Not specifying payment timing and expense reimbursement rules, increasing disputes over compensation and costs.
  • Omitting reporting cadence and detail, which impedes transparency and donor stewardship.

Consequences of an Incorrect or Missing Agreement

Contract Disputes: Unclear terms can trigger litigation or costly settlement
Tax Exposure: Incorrect receipting or reporting risks donor tax issues
Regulatory Penalties: Mismanagement may invite state charity enforcement actions
Reputational Harm: Poor controls can damage donor trust and funding
Payment Claims: Disagreements over fees can lead to collection actions
Recordkeeping Failures: Missing records complicate audits and legal defence

Required Information and Security Controls

Legal Names: Full entity names
TIN/EIN: Tax identifier required
Bank Details: Account info for fund disbursement
Donor Data: Store securely, privacy controls
Audit Trail: IP, timestamp, and action log
HIPAA BAA: Required if health data included

How Organizations Use This Agreement in Practice

Real-world scenarios show how terms are tailored to event, online, and third-party fundraising contexts.

University Capital Campaign

A university engaged an external fundraiser to secure alumni gifts, focusing on naming opportunities and stewardship timelines.

  • The fundraiser received a performance fee tied to milestones.
  • The agreement required quarterly reports and donor lists; the university retained final approval of major gift recognition and reserved the right to reassign restricted gifts.

Charitable Event Promoter

A promoter organized ticketed benefit concerts and handled ticket sales and donor processing.

  • The organizer remitted net proceeds after agreed expenses.
  • The contract specified expense caps, reconciliation procedures, and a final accounting within 45 days, plus donor receipt templates to ensure tax compliance.

Practical Tips for a Clear and Enforceable Agreement

Adopt clear language, predictable accounting rules, and defined approval flows to reduce ambiguity and enforcement cost.

Use precise definitions
Define terms such as 'net proceeds', 'restricted gifts', and 'campaign period' to avoid differing interpretations and downstream disputes.
Require documented approvals
Include a clause requiring board resolution or delegated authority evidence where signatory power may be questioned during enforcement or banking.
Detail reporting format
Specify line-item accounting, acceptable supporting receipts, and whether donor names are shared, preventing ambiguity in audits and donor stewardship.
Plan for termination
Set clear wind-down steps, responsibility for undisbursed restricted funds, and timeframes for final reconciliations to protect donor intent.

eSignature Vendor Pricing Snapshot for Agreement Execution

Comparison of representative starting prices and key features across common eSignature vendors; signNow appears first in the vendor column order.

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 credit card required Check vendor for trial terms Check vendor for trial terms Check vendor for trial terms Check vendor for trial terms
Bulk Send Available on higher tiers Available on select plans Available on select plans Available on select plans Varies by plan
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA available) Yes (BAA available) Yes (BAA available) No No

Frequently Asked Questions About Fundraising Agreements

Answers to common questions about drafting, signing, and preserving fundraising agreements, plus tips to avoid common pitfalls.


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