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Gift Agreement Legally Binding

A well-written donation agreement can give these assurances. It can also be used for other functions: non-profit organizations can strengthen the case for applicability through donor communication and the language of their deposit agreements. Discussions between a not-for-profit organization and a potential funder are the opposite of contract negotiations. The organization is delighted with donors, and really grateful for a gift to support the organization`s mission – asking about the legal applicability of a promise is the last thing the organization wants to do. However, a non-profit organization may take non-contradictory steps to create the best case of enforceable force when a deposit agreement is called into question: it is a general rule of the contract that a simple undertaking is not legally enforceable if no consideration is made for the promise. In many cases, the courts have found a quid pro quo and have therefore imposed collateral as a standard contract. A pioneering case of New York Allegheny College v. Nat`l Chautauqua County Bank [1927] involved Mary Yates Johnson, who signed a commitment in 1921 to sell $5,000 to Allegheny College for a fund known as the Mary Yates Johnson Memorial Fund. Mary paid $1,000, but changed her mind and informed the school in 1924 that she would revoke her promise. After his death, Allegheny College continued his succession to impose the order. Mary`s estate argued that Mary`s University had given nothing in exchange for her promise, and therefore there was no consideration. Cardozo J.A.

in the decision in favour of Allegheny College was taken into account in the college`s „implicit promise“ to „do whatever is the usual or reasonably necessary actions to obtain the memorial fund.“ Making a charitable promise or promised gift has long been a popular way to respond to requests for donations from non-profit organizations, as there is no immediate need to transfer funds or alternate assets. During the engagement, a donor admits that at a later date or at will, he or she gives cash or certain assets. There are many reasons to accept a deferred gift rather than an immediate gift. Currently, the mortgaged assets may not be liquid, the donor may want to invest funds to earn a higher return than the charity has, or the donor is trying to arrange more favourable tax treatment for a gift that will be completed in the coming year. For works of art or collectibles, a promised gift may simply reflect the donor`s desire to continue using and rejoice in the works for a while before being donated to charity.

Karlinho

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