If a contribution is not voluntary, it is not a gift deductible for Federal income tax. This begs the question: if someone enters into a legally binding agreement on donating property or cash to an organization, is the contribution still considered voluntary? Fortunately, the courts have confirmed that a donation can be voluntary, notwithstanding the fact that its terms of payment are governed by a legally enforceable donation agreement. As the examples in the previous section show, a pledge can and often will lead the conservation organization to take steps to rely on receipt of the donation. If the donation is not made and a court finds that such measures were reasonable and were made in good faith in the donation, the court may find that a donor could be offended by an application for a donation agreement that formalizes his promise, finding that such a request calls into question his reliability or financial capacity. While this can be seen as a reason not to make a request, it can also be considered a reason for careful communication of the matter. While donor sensitivity may be an issue, it is important for the conservation organization to have a harmless justification for the requested agreement and a clear communication strategy with the donor. The grant agreement offers each party the opportunity to have its objectives recognized. A well-written donation agreement can give these assurances. It may also serve other functions: you and EFYH acknowledge that EFYH has sole and complete control over how EFYH`s contribution is used to our public benefit programmes/objectives. Without limiting the generality of the foregoing, you acknowledge and agree that you have no power or ability to direct or direct contribution to individual patients, practices or undertakings.
A donation agreement may contain this documentation. It can also set expectations and understandings to ensure a satisfying experience for both the donor and the manager. One of the challenges is to distinguish the circumstances that require a donation agreement from the large number of times when a simple commitment is enough. . . .