A simple gift agreement is a legal document that outlines the terms and conditions of a gift between a donor and a recipient. It is a written agreement that specifies the details of the gift, such as the amount or value of the gift, how it is to be used, and any restrictions or conditions attached to the gift.
The purpose of a simple gift agreement is to ensure that both the donor and the recipient understand and agree to the terms of the gift. It also helps to prevent any misunderstandings or disputes that may arise in the future.
Here are some key elements that should be included in a simple gift agreement:
1. Description of the gift: The agreement should clearly describe the gift, including its nature, amount, and value.
2. Purpose of the gift: The agreement should state the purpose for which the gift is being given. This could be to support a particular program or project, or to provide general support for the recipient organization.
3. Use of the gift: The agreement should specify how the gift is to be used. This could include restrictions on how the funds are to be spent, or requirements for reporting on the use of the gift.
4. Recognition: The agreement may include provisions for recognizing the donor, such as naming rights or acknowledgments in publications or on the organization`s website.
5. Reversionary clause: In some cases, the agreement may include a reversionary clause, which stipulates that if the gift is not used for the intended purpose, it will be returned to the donor.
6. Duration of agreement: The agreement should specify the period during which the gift will be in effect. This could be a one-time gift or a multi-year commitment.
A simple gift agreement is an important tool for both donors and recipients. It helps to ensure that the gift is used as intended and that both parties are clear on the terms and conditions of the gift. If you are considering making a gift to an organization, it is important to work with a qualified attorney to draft a simple gift agreement that meets your needs and protects your interests.