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Including binding language in gift agreements

  • 1.  Including binding language in gift agreements

    Posted 17 days ago
    I'm curious if folks still include language in gift agreements that the pledge is binding "upon the donors' executors, administrators, heirs, and assigns." 

    We currently have this language in our gift agreements, but I'm wondering if it is necessary.

    Thank you,

    Stephanie

    ------------------------------
    Stephanie Carper
    Director of Development
    scarper@openlands.org
    ------------------------------


  • 2.  RE: Including binding language in gift agreements

    Posted 17 days ago
    I will let current practitioners respond.  However, in my travels, I see this less and less.  A standard pledge agreement is already legally binding - ever since the mid-1990s when these became bookable as assets or receivable on our GLs.  As such, they are formally regarded as debts that must be satisfied dead or alive.  Therefore, adding such a phrase or sentence is redundant.  Furthermore, it is extremely rare that I have observed a nonprofit take legal action against an estate with or without this language.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Including binding language in gift agreements

    Posted 17 days ago
    Good afternoon,

    Our pledge and our agreements are separate. The agreement is legally binding but the pledge is not. The only language we have stating legally binding vs non legally binding is our legacy pages. 

    Sent from my iPhone





  • 4.  RE: Including binding language in gift agreements

    Posted 14 days ago
    The language is not strictly necessary, but may be helpful to leave in. Not all donors understand or assume that a pledge outlasts their own life and can be enforced on their estate


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

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