Restricted Gift Agreement
There is no defined formula for creating a restricted gift. All that is needed is an offer to give a gift to a charity for a specific purpose (i.e. a more restrictive purpose than the charity`s stated charities) and acceptance is limited by the gift donation. Misunderstandings arise when the donor`s intentions are not clearly communicated to the charity and accepted by the charity. The donor`s intentions may be expressed in a way that does not draw the charity`s attention (after receiving the gift) to the possibility that the donor intended to use it only for a particular purpose. Ambiguity and non-disclosure may require court intervention, i.e. on the basis of the facts of each case and perhaps sympathy for the donor or donor, if the donation is limited or if the donor`s letter of intent was merely pre-emptive (i.e. advisory but non-binding to the donor). A foundation can be created with a minimum gift of $25,000, either directly or for a maximum of five years. A gift contract must be executed before a banner index can be created to retain the foundation funds. Funds received prior to the execution of a gift contract are paid into the university`s advance account.
The Office of Advancement Services moves the funds held (via newspaper transfer) as soon as a banner index is available. Leaders might consider returning a gift. This is not easy, because organizations are easily able to return only assets, and such an action could set a precedent – and give previous donors the impression that they can recover donations; and because a not-for-profit organization must keep accurate records of donations received, a donor must keep a record of the donations they have made, especially when it comes to the tax period. A specific agreement on gifts and other financial documents will help keep the non-profit organization and donor on the same page. Effective May 14, 2019, the Utah Code 63G-12-402 states that undocumented students can only receive a privately funded scholarship if they have completed a high school in Utah and the scholarship is managed by a university. Undocumented students from other high schools are not eligible for privately funded scholarships. Donors are not able to set different rules in their donation agreement. Is the purpose of the donation consistent with the purpose and objectives of the organization? Is the gift of the organization convincing enough to honor the particular purpose of the life of the gift, which could last for centuries depending on nature? As a general rule, funds, land, facilities or other heritage gifts to a charity may be used at the charity`s discretion for one of its charities.