What should a gift agreement include?

The parties, the purpose of the project, the pledge amount with an exact payment schedule, the purpose of the gift in general terms, each party's commitment, governing law, and signatures. Add recognition, announcement, reporting, change of purpose, and estate clauses when your gift needs them.

Is a pledge agreement legally binding?

A signed pledge agreement is usually written as a legally binding commitment. The rules vary by state, so have your legal counsel review every agreement before anyone signs.

Should the nonprofit or the donor write the first draft?

The nonprofit. Giving the donor a draft reduces cost and delay, because the donor's representatives respond to a document instead of starting from nothing.

Your Modular Gift Agreement Template

Start Here

A gift agreement puts the donor's commitment and your organization's commitment in one signed document. Pick the clauses your gift needs and fill in the details. Then copy the draft for your legal counsel to review.

Open the template

How to Use It

Fill in the basics. Names and the gift amount appear in every clause that uses them.
Turn on the clauses your gift needs. Core clauses stay on in every agreement.
Open any clause to edit its wording. Words in brackets are yours to replace.
Copy the draft or download it as a Word file. Send it to your legal counsel first, then share it with your donor.

A starting point for your counsel. This template is general information, not legal advice. Pledge and gift law varies by state. Have your legal counsel review every agreement before anyone signs.

Fill In the Basics

Your organization DonorA person, a couple, or a family Project or campaign Total gift amount Payment period in years Governing state Agreement date

Your entries stay in this browser only.

Choose Your Clauses

Core clauses belong in every gift agreement. Turn on the optional clauses that fit this gift.

Your Draft Agreement

How to Negotiate a Gift Agreement

What Is the Purpose of a Gift Agreement?

A gift agreement is a legally binding document in which the donor and the nonprofit each commit to their part of the gift. It protects the donor's intent, gives assurance that pledge payments will arrive on an agreed schedule, and documents how the gift will advance the nonprofit's mission. This clarity strengthens accountability and trust between the parties.

How Specific Should the Purpose Be?

Document the purpose or priority for the gift in general terms. For example, "Building Expansion," or "Building Expansion, including but not limited to purchasing or leasing space, outfitting the space, and retrofitting the current building."

Leave out overly detailed documentation, such as an attached accounting of line items.

When donors choose to let your organization make decisions and deliberately choose not to micromanage, that is a rare and wonderful result of the trust you have built. Make sure the gift is not restricted more than the donors themselves choose to restrict it. Flexibility protects your organization's ability to fulfill its mission.

How Detailed Should the Pledge Payment Schedule Be?

Precise, with exact amounts and payment dates. This reduces ambiguity and prevents delays or misunderstandings.

How Should You Handle Concerns During Negotiations?

Discuss any topic of concern internally first. Your executive director, or equivalent, decides how to bring the issue into the gift agreement discussion in a way that keeps the process professional and focused on resolution.

Should You Discuss Internal Challenges With the Donor?

No. Donors need confidence in your organization's ability to manage the gift responsibly. Present a clear and unified front, and keep unresolved internal issues out of negotiations.

Should You Give the Donor a Draft Agreement?

Yes. A draft reduces cost and delay by giving the donor or their representatives a foundation to review and respond to.

Who Sits at the Table, and Who Needs to Be Informed?

At the table, your executive director, the donor or their representative, a fundraising professional, and legal or financial advisors if needed.

Informed, the members of your executive committee and any donor family members involved in the decision.

What Happens Once the Gift Agreement Is Signed?

Celebrate the gift in a way that reflects its size, with a small dinner or another thoughtful gesture.

Begin your marketing and communications plan. You can share the details of the gift publicly, in line with the donor's wishes.

Have the agreement signed electronically, add it to your donor database, and file it in a shared folder for pledge agreements.

What Should You Avoid Between Agreeing on Terms and Signing?

Delay. Once the terms are agreed, move quickly to electronic signatures. Delay at this stage creates frustration and costs momentum.

New topics. This is the moment to finalize and sign the agreement as discussed, without revisiting terms or adding conditions.

About the Builder

Anne Murphy

CEO and Lead Fundraiser and Campaign Counsel

35 years leading advancement strategy across the nonprofit sector and more than $10 billion in campaigns. She guides teams through campaigns.

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