Donation Agreement: how to conclude and how it differs from a gift agreement
Kyiv • UNN
The Ministry of Justice has clarified the key differences between gift and donation agreements. A donation has a clear, specific purpose and involves control over its use, unlike an unconditional gift, which is regulated by articles of the Civil Code of Ukraine.
Unlike a donation agreement, a charitable contribution agreement has a clear purpose and may allow for control by the donor. The law requires adherence to a certain form and conditions, and also grants the parties defined rights. The Ministry of Justice explained the difference between a charitable contribution agreement and a donation, writes UNN.
Details
As explained by the Ministry of Justice, a charitable contribution is an act of charity, which is also a legal act, and therefore requires strict adherence to legal norms. In Ukrainian legislation, charitable contributions are regulated by articles of the Civil Code of Ukraine (CCU), in particular Article 729.
What is considered a charitable contribution
According to Article 729 of the CCU, a charitable contribution is the donation of immovable and movable property (including money, securities) to persons specified in Article 720 of the CCU for a predetermined purpose.
Who can be a party to the agreement
According to Article 720 of the CCU, the following can participate in a charitable contribution agreement:
- individuals;
- legal entities;
- the state, territorial community.
Parents, guardians, or adoptive parents cannot donate the property of their children or wards.
Who can conclude the agreement
A charitable contribution agreement can be concluded by a representative of the donor under a notarized power of attorney.
Key differences between a charitable contribution and a donation
Purpose
- a charitable contribution always has a clear purpose, and the recipient is obliged to adhere to it;
- a donation is an unconditional transfer of property without requirements for use.
Time of conclusion of the agreement
A charitable contribution is a real contract and is considered concluded from the moment of actual acceptance.
A donation can be:
- real - from the moment of property transfer;
- consensual - from the moment an agreement is reached on future transfer.
Donor's rights
According to Article 730 of the CCU, the donor has the right to:
- control the use of the charitable contribution for its intended purpose;
- demand consent to change the purpose of the charitable contribution's use;
- initiate contract termination if the charitable contribution is used for unintended purposes.
Form of agreement
The form of the agreement depends on the type of property.
Oral form - for the donation of personal use items or household goods.
Written with notarization:
- for the donation of immovable property;
- for the donation of foreign currency valuables (for large sums between individuals).
Mandatory written form:
- if the transfer of the charitable contribution is planned for the future;
- for items of special value.
Failure to comply with the written form renders the agreement invalid.
When the agreement is considered concluded
The charitable contribution agreement enters into force from the moment the charitable contribution is accepted by the recipient, i.e., when they agree to receive it.
Charitable donation
A separate type of charitable contribution is a charitable donation, which is regulated by the Law of Ukraine "On Charitable Activities and Charitable Organizations".
Conditions of a charitable donation:
- may include suspensive or resolutive conditions;
- may be provided on a competitive basis.
The philanthropist has the right to:
- control the targeted use of the charitable contribution;
- change the beneficiary if the goals or conditions are violated.