Legal Definitions - donor

A donor is an individual or entity that voluntarily gives an asset, money, property, or a legal right to another person or organization, typically without expecting anything of equivalent value in return. The act of giving is usually intended as a gift or a contribution.

• Example 1: Charitable Contribution

  Scenario: Sarah decides to contribute $500 to her local animal shelter to help cover the costs of caring for abandoned pets.

  Explanation: In this situation, Sarah is the donor because she is voluntarily giving money to the animal shelter without receiving any goods or services of equal value in direct exchange. Her intention is to support the shelter's mission.

• Example 2: Gifting Real Estate

  Scenario: Mr. Henderson signs over the deed to a vacant plot of land he owns to his niece, Emily, as a graduation gift.

  Explanation: Mr. Henderson acts as the donor by transferring ownership of the land to Emily. He does not receive any payment or consideration from Emily for the property; it is a gift motivated by his desire to benefit her.

• Example 3: Establishing a Trust

  Scenario: Maria sets up a trust fund for her grandchildren, depositing a significant sum of money into it and appointing a trustee to manage the funds for their future education and well-being.

  Explanation: Maria is the donor in this context because she is the one providing the assets (the money) that will be held and distributed by the trust for the benefit of her grandchildren. She initiates the transfer of these assets without receiving direct payment or an equivalent exchange for herself.