CaseMark Donation Agreement
Formalizes a charitable transfer from donor to nonprofit with IRC § 170 compliance and protections for both parties. Target 5–10 pages; complex endowment or real property gifts may run longer.
Prerequisites
Gather before drafting:
- Donor — legal name, address, entity type (individual/corporation/trust), TIN
- Recipient — legal name, address, 501(c)(3) status (public charity vs. private foundation)
- Donation — cash amount or non-cash property description with fair market value
- Appraisal — qualified independent appraisal if non-cash > $5,000
- Restrictions — unrestricted, purpose-restricted, or endowed; conditions (matching funds, naming rights)
- Governing state — for choice of law and venue
Document Structure
1. Parties & Recitals
- Full legal names, addresses, entity types for Donor and Recipient
- Recipient's 501(c)(3) classification (public charity vs. private foundation — affects deduction limits)
- Recitals: charitable intent, mission alignment, donation purpose
2. Description of Donation
| Asset Type | Required Detail |
|---|---|
| Cash | Amount (numerals + words), currency, schedule (lump sum/installments) |
| Real property | Legal description, parcel number, encumbrances, title status |
| Personal property | Description, condition, quantity, FMV per appraisal |
| Securities | Type, quantity, issuer, transfer method (DTC/certificate) |
| IP | Rights transferred, registration numbers |
| In-kind | Nature, scope, valuation methodology |
Include delivery method, transfer date, and conditions precedent.
3. Terms and Conditions
- Unrestricted — recipient may use for any exempt purpose
- Restricted — permitted uses, prohibited uses, time period
- Irrevocability — irrevocable upon acceptance (required for deduction)
- Cy pres — if purpose becomes impossible/impractical, funds redirect to substantially similar charitable purpose
- Endowment vs. expendable — whether principal must be maintained
- Conditions — contingencies (matching gifts, naming rights, milestones) and non-fulfillment consequences
- Reporting — required accounting statements or use certifications
4. Tax Acknowledgment & IRS Compliance
| Threshold | Requirement |
|---|---|
| Any amount | Written acknowledgment: 501(c)(3) status, date, amount/description, "no goods or services" statement |
| > $250 | Contemporaneous written acknowledgment before filing — IRC § 170(f)(8) |
| Non-cash > $500 | Donor files Form 8283; recipient completes Section B if > $5,000 |
| Non-cash > $5,000 | Qualified appraisal required; summary attached to Form 8283 |
| Quid pro quo > $75 | Recipient provides good-faith FMV estimate of benefits received |
Include disclaimer: neither party provides tax advice; donor should consult own tax counsel.
5. Representations & Warranties
Donor warrants:
- Full legal title and authority to transfer
- Property free of undisclosed liens, encumbrances, or defects
- Donation does not breach any other agreement
- (Non-cash) Discloses all known defects, environmental issues, or legal problems
Recipient warrants:
- Duly organized, validly existing, in good standing
- Current 501(c)(3) status (attach determination letter or reference EIN)
- Authority under governing documents to accept
- Will use donation per stated restrictions
6. Standard Provisions
- Governing law — [State], without conflict-of-law principles
- Venue — [County/District courts]
- Dispute resolution — optional mediation/arbitration before litigation
- Attorneys' fees — prevailing party recovery (specify or omit)
- Severability, entire agreement, amendment (written, signed by both)
7. Execution
- Signature blocks with printed name, title, date
- Corporate donors: signatory authority (title, board authorization for large gifts)
- Recipient: authorized officer per bylaws
- Notarization: required for real property; recommended above materiality threshold
- Exhibits: property descriptions, appraisals, restriction schedules, IRS determination letter
Pitfalls & Checks
- Verify 501(c)(3) status via IRS Tax Exempt Organization Search before closing
- Pledge vs. gift — pledges are generally unenforceable absent consideration/reliance; document completed or contemporaneous transfers unless expressly structuring an enforceable pledge under state law
- Private foundations — excess business holdings, self-dealing, and expenditure responsibility rules may apply; flag for tax counsel
- Naming rights — address FMV of benefit and impact on deduction (quid pro quo rules)
- AML/OFAC — for large or foreign-sourced donations, include AML representations
- State solicitation laws — many states require recipient registration; note but do not opine