Legal Definitions - donation

A donation refers to the voluntary transfer of property, which is often money, from one party (known as the donor) to another (the donee) without any expectation of receiving something of value in return. Essentially, it is a gift, frequently made with a benevolent or charitable purpose.

For a donation to be legally effective, the donor must knowingly, intentionally, and unconditionally convey the property to the donee. Once the donee accepts this gift, the transfer is generally considered final and cannot be revoked. Many donations, especially those made to qualified charitable organizations, may also offer tax benefits to the donor under specific legal guidelines.

• Example 1 (Charitable Monetary Gift):

  Scenario: A local animal shelter launches a fundraising campaign to build new kennels. Ms. Chen, a passionate animal lover, writes a check for $1,000 and mails it to the shelter, along with a note expressing her support for their mission.

  Explanation: This is a clear example of a donation because Ms. Chen (the donor) voluntarily transferred money (property) to the animal shelter (the donee) with a charitable intent and without expecting anything in return. Once the shelter receives and accepts the check, the donation is complete and irrevocable, helping them fund their project.

• Example 2 (Personal Property Gift):

  Scenario: After upgrading his home gym, Mr. Davies decides to give his perfectly functional, but no longer needed, treadmill to his niece, Emily, who has expressed a desire to start exercising at home. He delivers it to her house and says, "It's all yours, enjoy getting fit!"

  Explanation: This illustrates a donation because Mr. Davies (the donor) intentionally and voluntarily transferred his treadmill (property) to Emily (the donee). He did not ask for any payment or compensation. Once Emily accepts the treadmill, the gift is finalized, and she becomes its new owner without having provided anything in exchange.

• Example 3 (Corporate In-Kind Donation):

  Scenario: A technology company, Innovate Solutions, is replacing its office furniture. Instead of discarding the old but still usable desks and chairs, the company arranges for them to be delivered to a newly established non-profit community center that provides free educational workshops.

  Explanation: Here, Innovate Solutions (the donor) made a donation by voluntarily transferring physical property (the office furniture) to the community center (the donee). The company received no payment or direct commercial benefit for the furniture. The community center's acceptance of the furniture completed the donation, allowing them to furnish their new space at no cost.