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A Donation Agreement outlines the terms and conditions when someone gives property, money, or assets to another party in Saudi Arabia. It transforms a verbal promise into a binding legal document that protects both the donor and recipient under Islamic law and the Kingdom's civil code.

These agreements specify crucial details like the donated item's value, transfer timeline, and any conditions attached to the gift. In Saudi organizations and charitable foundations, these contracts help ensure compliance with Zakat regulations and create a clear audit trail for regulatory authorities. They're especially important for corporate giving, waqf endowments, and institutional donations.

Use a Donation Agreement anytime you're making or receiving significant charitable gifts in Saudi Arabia, especially for corporate donations, waqf endowments, or large personal contributions. This legal safeguard becomes essential when dealing with high-value assets, recurring donations, or gifts with specific conditions attached.

The agreement proves particularly valuable during tax seasons, charitable campaigns, and institutional giving programs. It helps meet Zakat requirements, provides documentation for regulatory compliance, and creates clear records for both donors and recipients. Many Saudi organizations require these agreements for donations above certain monetary thresholds or when the gift involves real estate, securities, or specialized equipment.

• Simple One-Time Gift Agreement: Used for straightforward monetary donations or single property transfers, with basic terms and immediate execution
• Conditional Donation Agreement: Includes specific requirements the recipient must meet, common in educational and charitable foundation gifts
• Corporate Zakat Agreement: Structured for businesses making regular charitable contributions, with tax documentation and compliance features
• Waqf Endowment Agreement: Details permanent charitable endowments under Islamic law, including asset management and beneficiary terms
• Institutional Support Agreement: Designed for ongoing support between organizations, with milestone-based transfers and reporting requirements

• Donors: Individual philanthropists, corporations, and family businesses making charitable contributions under Saudi law
• Charitable Organizations: Registered nonprofits, foundations, and humanitarian groups receiving and managing donations
• Legal Advisors: Saudi-licensed attorneys who draft and review Donation Agreements to ensure Shariah compliance
• Corporate Officers: Company executives authorized to sign and execute donation commitments on behalf of businesses
• Zakat Authority: Government officials who verify documentation for tax purposes and charitable compliance
• Financial Controllers: Professionals who track and report on donated assets and ensure proper transfer execution

• Donor Details: Gather complete legal names, contact information, and authorization documents for all parties
• Asset Description: Document precise details of donated property, including current market value and any existing liens
• Transfer Timeline: Specify exact dates for donation completion and any phased giving arrangements
• Conditions: List any requirements or restrictions on how the donation must be used or managed
• Zakat Compliance: Confirm tax implications and gather necessary documentation for Saudi authorities
• Signatures: Identify authorized signatories and prepare authentication requirements per Saudi law
• Documentation: Collect supporting evidence like property deeds, corporate re����ֱ��s, or valuation reports

• Identification: Full legal names and details of donor and recipient, including registration numbers for organizations
• Asset Description: Clear specification of donated property or funds, including current market value and condition
• Transfer Terms: Precise timing and method of donation transfer, including any phased arrangements
• Shariah Compliance: Statement confirming the donation adheres to Islamic principles and Saudi law
• Usage Conditions: Any restrictions or requirements on how the donation must be utilized
• Representations: Confirmation of donor's ownership and right to transfer the assets
• Governing Law: Clear statement that Saudi law and Shariah principles govern the agreement
• Authentication: Signature blocks with proper witnessing requirements per Saudi regulations

A Donation Agreement differs significantly from an Asset Purchase Agreement in several key ways, though both involve transferring property or assets in Saudi Arabia. While donations are gifted without expectation of payment, asset purchases involve direct compensation and commercial terms.

• Purpose and Intent: Donation Agreements focus on charitable giving and Zakat compliance, while Asset Purchase Agreements are commercial transactions with profit motives
• Payment Terms: Donations involve no payment or consideration from the recipient, whereas Asset Purchase Agreements detail specific payment schedules and terms
• Tax Treatment: Donations may qualify for Zakat deductions and special tax treatment, while asset purchases are treated as standard business transactions
• Due Diligence: Asset Purchase Agreements require extensive warranties and representations about the asset's condition and value; Donation Agreements typically have simpler verification requirements
• Regulatory Framework: Donations follow charitable giving laws and Shariah principles, while asset purchases fall under Saudi commercial law and business regulations