Grant Agreement for Non-Profit Organizations

A Grant Agreement is a contract between a grantor and a grantee (or donor and donee). The grantor is the party giving the grant by donating funds. And the grantee is the party receiving the funds. The purpose of the Grant Agreement is to specify how the donation money will be spent or allocated to projects.

The grantor can be any individual, a non-profit organization, or a charity. The grantee must be a non-profit organization or a charity. Normally, a non-profit will donate to another non-profit if they have similar goals and visions.

A non-profit organization can be structured as either:

• a trust;
• a corporation; or
• a constitution.

Also, the non-profit organization can become a registered charity if they meet the requirements. To meet the requirements, the organization must apply to the Canada Revenue Agency (CRA), and it must fall within the categories of a charitable purpose. For example, community benefits such as crisis counselling, poverty relief, and more. Once registered, the CRA will designate the registered charity as either:

• a charitable organization;
• a public foundation; or
• a private foundation, depending on how it's structured.

To be exempt from tax, the non-profit organization must be created for purposes other than profit.

Unlike a for-profit corporation, a not-for-profit organization doesn't operate with a view to profit or gain.

HOW TO USE THIS DOCUMENT

This document requires basic information about the grant, such as the total amount of the grant, the terms of payment, and the purpose of the grant. Also, it requires details about the identity of the grantor and grantee, as well as the grantor's mission.

Once completed, the parties must print and sign the document. The parties should keep a copy of the signed agreement for their records.

APPLICABLE LAW

Grant Agreements are not subject to specific legislation. However, the laws governing contracts apply.

Specific laws will apply depending on the non-profit organization's business structure. For example, if the non-profit were incorporated under the laws of Ontario, the Not-for-Profit Corporations Act, 2010, S.O. 2010, c. 15 applies. If the corporation were federally incorporated, the non-profit would be governed by the Canada Not-for-profit Corporations Act (S.C. 2009, c. 23).

Also, non-profits, like any other business, will be subject to income tax laws under the Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.)).

HOW TO MODIFY THE TEMPLATE

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.