Key Considerations for Gift Agreements
by M. Elena Hoffstein
It is not necessary to have a gift agreement to make a gift. However, it is important that charitable gifts and charitable pledges made by donors to charities be documented. A gift agreement provides evidence that a gift has or will be made, and can help avoid confusion in the future as to whether a gift has been made and the terms of that gift. A pledge agreement is an agreement that records a commitment by a donor to make a gift at a future time. Documentation of charitable pledges will be particularly important when the registered charity is relying on the satisfaction of the charitable pledge in order to begin or continue a project or engage in or continue research.