What is charitable subscription in contract law?

Contracts Law. A charitable subscription, also called a charitable pledge, is a donor's written or oral promise or statement of intent to contribute money or property to a charity.

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Charity Subscription Agreement

San Bernardino California Charity Subscription Agreement

Name: San Bernardino California Charity Subscription Agreement
Brand: US Legal Forms
Rating: 4.84 (430 reviews)

Category:

Contracts - Charity

State:

Multi-State

County:

San Bernardino

Control #:

US-1032BG

Format:

Instant download

Description

A subscription agreement is a legal obligation to make a payment in money or its equivalent in furtherance of a charitable, business or other undertaking, A 501(c)(3) organization is a corporation, trust, unincorporated association, or other type of organization that is exempt from federal income tax under section 501(c)(3) of Title 26 of the United States Code. For example, 501(c)(3) tax-exemptions apply to entities that are organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes.

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FAQ

Donation pledges are donors' promises to give a certain amount of money to an organization over a set amount of time. Donors can make pledges that are conditional, meaning payment will only be made once a condition is met, or unconditional with no strings attached.

Contracts Law. A charitable subscription, also called a charitable pledge, is a donor's written or oral promise or statement of intent to contribute money or property to a charity.

A gift is a voluntary and gratuitous transfer of property from one person to another, without something of value promised in return. Failure to follow through on a promise to make a gift is not enforceable as a breach of contract because there is no consideration for the promise.

A charitable pledge is enforceable if it is a legally binding contract. A legally binding contract exists when there is agreement between the parties and there has been consideration given in exchange for the pledge.

In California, like most other states, charitable pledges are analyzed as a matter of contract law. This means that pledges are not enforceable unless: (1) the pledgor receives consideration for making the pledge; or (2) the charity has detrimentally relied on the pledge.

Alternatively, courts will enforce a pledge if the charity has suffered some detriment by taking action in reasonable reliance of the pledge, even though such detriment was not requested as consideration.

A binding pledge is a pledgor's debt and the charity's asset non-binding pledge simply is an expression of current intent. An oral pledge may be enforceable, but they are difficult to prove and in the precise terms are very difficult to establish as well.

As a legal matter, a charitable pledge is a contract between a donor and a charity in which the donor promises to make a contribution in the future. Pledges may be oral or in writing.

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San Bernardino California Charity Subscription Agreement

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