A donation contract, which should not be confused with a gift acceptance policy, is expressly used to spell and document what the donor expects and what the non-profit organization undertakes to do. Any gift that reaches the most important gift status defined by your organization should require a gift agreement, even at the monthly donation level. A full donation agreement can ensure that your non-profit organization and donor are on the same side and match the various aspects of the main gift. Gift contracts are concluded and signed to avoid misunderstandings and show your donor that you are interested and appreciated and important. This is Kevin McCrindle, an ACTEC Fellow from Waterloo, Iowa. Whether you represent a charity or donor, you must be prepared to negotiate and design an agreement to protect your client. To give us more information on this topic, you will hear today from an ACTEC Fellow, Karen Stockmal of Berwyn, Pennsylvania. Welcome, Karen. It will therefore be very important to consider whether the charitable gift contract should include specific options to change the circumstances. Expectations are everything when you work with customers. So let them know that either their name will be on the building as long as the building continues to exist, or, for example, that the university can accept that if the building is to be replaced or moved at some point in the future, they would get a first right to refuse to renovate their gift in a new or renovated building or give it away, for example , a period of years to know that their building would be designated for at least a period of years or a generation, until the death of the donor or, perhaps, the donor`s children is entirely feasible. The examples we see in the media, where donors and non-profit organizations clash, are where these kinds of expectations are not discussed in advance.
Similarly, when it comes to advising clients, it is important that they also recognize, in the context of setting up a foundation, that they give a lot of control over the funds. For example, there are many cases that have attracted media attention, where donors have set up a foundation, perhaps for a university, and in return have asked to be appointed to a recruitment committee or to be consulted on the political issues of the university. While such agreements are sometimes documented, they may be impeased when the management of the non-profit organization changes ownership. For example, a new dean at a college who was not present at the time of the development of the agreement may have new priorities, new ideas and not be prepared to accomplish these constructions. Therefore, even careful and detailed formulations cannot eliminate all the problems or concerns that we can foresee. Therefore, to remind clients that, while they live, perhaps the university is willing to try in all respects to keep the agreement, the client should always understand that there are unforeseen changes in mission and non-profit management. It is wise to adopt a flexible mentality. A promised contribution may encourage an organization to take action or adopt an action plan desired by the donor. Motivated by the size of the expected contribution, the organization could move forward with an otherwise impractical program or project.