When
a donor knows which organization he/she plans to support,
the final step before making the gift is to identify funding
needs of the selected organization that match with the
client’s philanthropic interests, and to establish any
terms and conditions.
Sometimes, a donor considers it wise to give an undesignated
gift to the charity’s general fund. In this case,
there is little to design and only nominal accountability
is needed – a simple request for an annual report,
Form 990 filed with the IRS , or access by phone to the chief executive.
Other times, a donor may deem it wise to designate the
gift to a particular project or across multiple projects.
The gift may be made in phases, subject to the achievement
of milestones. We can help "negotiate" these important
decisions with the charity and write them into a
Gift Agreement Letter,
which accompanies the donation. The letter also specifies
any conditions for the gift and reporting requirements, and
reminds the charity of its obligations to deploy the
designated gift properly. After signature by the donor, an
executive at the charity signs the agreement upon receipt of the check.
A well-designed gift can be significantly more effective
for the recipient organization, and can protect the donor.
Accountability is achieved from periodic reports and by
assessing on the utilization of the donation as specified
in the Gift Agreement Letter. Discrepancies are reported
to the donor along with counsel on future steps, if any.
A Gift Agreement Letter brings the donor and donee together in a constructive
conversation about how to fund strategic initiatives. We
find that this creative process is valuable to the nonprofit
and satisfying to the donor.