Template · Fundraising

Gift agreement for restricted gifts

A plain gift agreement for a donor's restricted or pledged gift: purpose, payment schedule, reporting, recognition, and what happens if it can't be met.

Download for Word (.docx)Rich Text (.rtf)Plain text (.txt)

Three editable formats: Word (.docx), Rich Text (.rtf) and plain text (.txt). Reviewed October 22, 2026.

How to use this template

Download it as a Word file (.docx), which opens in Microsoft Word, Google Docs, Pages and LibreOffice, or as Rich Text (.rtf) or plain text (.txt). All three are editable.
Fill in every blank. Blanks are in square brackets, like [ORGANIZATION NAME], and are highlighted in the preview below. Delete any bracketed notes you don't need.
Make it yours. Check it against your bylaws and your state's rules, and change anything that doesn't fit. Have your board approve it where it says so.
Printing? Print this page: the printout leaves out the site's menus and shows the template with lines for the blanks.

When a donor gives for a specific purpose, or pledges a large gift over several years, a short written agreement protects both sides. The donor knows exactly how the gift will be used and reported. Your charity knows what it has promised, and what it can do if plans change. Our guide to major gifts explains when to use a gift agreement and what it should cover; our guide to restricted funds explains how to track the money once it arrives.

Why the wording matters

A restriction can last a long time, and changing it later can be hard. As one example, the New York Attorney General's guide to the state's Prudent Management of Institutional Funds Act explains that a charity may get the donor's written consent to release or change a restriction on how a fund is used. If the donor is available and withholds consent, or isn't available, the charity may ask a court to release a use restriction that has become "impossible, impracticable, unlawful or wasteful," with notice to the donor and the Attorney General. The guide also describes a separate procedure for funds worth less than $100,000 that have existed for more than 20 years. Other states have their own versions of these rules.

So the most useful clause in a gift agreement is often the one that says, in advance, what happens if the purpose can't be carried out. With the donor's agreement written down from the start, you may never need a court.

A gift agreement isn't a receipt

The IRS says the written acknowledgment that substantiates a contribution of $250 or more must contain the organization's name, the amount of a cash contribution (or a description, but not the value, of a non-cash one), and a statement of whether the organization provided any goods or services in return, with a description and good-faith estimate of their value if it did. Send that acknowledgment when each payment arrives, as usual. Our guide to donor acknowledgments explains the details. The gift agreement can say you'll do so, but it doesn't replace it.

How to adapt it

Write a purpose you can keep for years. "Our youth reading program" lasts longer than "the Tuesday reading club at the Elm Street library."
Avoid promises you can't keep, such as funding a program forever, hiring a named person, or keeping a building open.
Agree on the change clause (Section 6) before anyone signs. It's easier to discuss when everyone is enthusiastic.
Keep naming terms clear. If something will carry the donor's name, say for how long and what happens if the pledge isn't paid or circumstances change.
Check it against your gift acceptance policy, and have the board or the person it authorizes approve the agreement.
Endowments and gifts of property (real estate, stock, retirement assets) raise extra legal and tax issues. Get advice before agreeing to them.

Preview

Gift agreement

This agreement is between [DONOR NAME(S)] ("the Donor") and [ORGANIZATION NAME], a nonprofit corporation in [STATE] ("the Organization"). It is effective on [DATE].

1. The gift

The Donor agrees to give the Organization $[AMOUNT] [IN CASH / IN [DESCRIBE NON-CASH PROPERTY]].

The gift will be paid:

in full on or before [DATE], or
as a pledge in [NUMBER] payments, as follows:

Payment	Amount	Due date
1	$[AMOUNT]	[DATE]
2	$[AMOUNT]	[DATE]
3	$[AMOUNT]	[DATE]

2. Purpose

The Organization will use the gift for: [PURPOSE, DESCRIBED BROADLY ENOUGH TO LAST].

[OPTIONAL: The gift may be used for these costs of the purpose: [FOR EXAMPLE: STAFF TIME, SUPPLIES, A SHARE OF OVERHEAD AT UP TO [NUMBER]%].]

[OPTIONAL TIME RESTRICTION: The gift will be used between [DATE] and [DATE].]

[OPTIONAL ENDOWMENT: The gift will be held as an endowment fund. Spending from the fund will follow the Organization's spending policy and the law of [STATE]. GET LEGAL ADVICE BEFORE USING THIS OPTION.]

3. Recognition

The Donor will be recognized as: [NAME AS IT SHOULD APPEAR], in [WHERE: ANNUAL REPORT, WEBSITE, PLAQUE].
The Donor wishes to remain anonymous. The Organization won't publish the Donor's name.
[NAMING: The [ROOM / PROGRAM / FUND] will be named "[NAME]" for [PERIOD / AS LONG AS THE PROGRAM CONTINUES]. If the gift isn't paid in full, or if naming would harm the Organization's reputation, the Organization may end or change the naming after talking with the Donor.]

4. Reporting

The Organization will send the Donor a short report on how the gift has been used [ONCE A YEAR / AT THE END OF THE PROJECT], by [DATE OR MONTH]. The report will include [THE AMOUNT SPENT, WHAT IT PAID FOR, AND RESULTS].

5. Acknowledgments

The Organization will send a written acknowledgment for each payment, including the information the IRS lists for acknowledging contributions of $250 or more. [The Organization will provide no goods or services in return for this gift.] [OR: In return for this gift the Organization will provide [DESCRIBE], with an estimated value of $[AMOUNT].]

6. If the purpose can't be carried out

If the Organization's board decides in good faith that the purpose in Section 2 has become impossible, impractical, unlawful or no longer needed, or that part of the gift isn't needed for it:

The Organization will tell the Donor, explain why, and propose a new use as close as possible to the Donor's original intent.
If the Donor agrees in writing, the Organization will use the gift for the new purpose.
If the Donor has died, can't be reached after reasonable efforts, or can't act, [THE DONOR'S NAMED REPRESENTATIVE, [NAME] / THE ORGANIZATION'S BOARD] may agree to a new use that is as close as possible to the Donor's original intent, in line with [STATE] law, including any court approval or notice to the state attorney general that the law requires.
[OPTIONAL: Any part of the gift not needed for the purpose will be used for [SECOND PURPOSE / THE ORGANIZATION'S GENERAL CHARITABLE PURPOSES].]

7. Pledge payments

If the Donor can't make a pledged payment, the Donor will tell the Organization as soon as possible. The Organization will use any payments received for the purpose in Section 2, and may adjust recognition in Section 3 to match the amount actually given. [STATE WHETHER THE PLEDGE IS INTENDED TO BE BINDING ON THE DONOR'S ESTATE. GET LEGAL ADVICE ON THIS CLAUSE.]

8. General terms

The Donor has not received any promise from the Organization except as written here.
The Organization will keep this agreement with its permanent records.
Changes to this agreement must be in writing and signed by both parties.
This agreement is governed by the laws of [STATE].

Signatures

Donor

Name: [NAME]

Signature: [SIGNATURE]

Date: [DATE]

For [ORGANIZATION NAME]