Service Agreement for NGOs and Foundations

What a good one includes

• The agreement must include clauses that bind the contractor to the same compliance, reporting, and auditing standards required by your primary donors or grant-makers.
• It must clearly state whether deliverables will belong to the NGO, enter the public domain, or be licensed under creative commons to align with your organization's charter.
• A robust clause must restrict the contractor's access to and use of sensitive donor, beneficiary, or volunteer database information.
• Payments should be tied directly to measurable, approved project milestones rather than simple hourly rates to justify the prudent use of charitable funds.
• The contract needs to define exactly how and where the contractor can use your NGO’s name, logo, and project results in their portfolio or marketing.
• A flexible termination clause is vital so you can end the contract immediately if funding is suddenly cut or if the contractor's conduct threatens your reputation.

Common mistakes to avoid

• Using standard commercial templates that lack crucial clauses regarding donor privacy, tax-exempt rules, and grant-maker auditing rights.
• Assuming the organization automatically owns the materials they paid for without an explicit, written intellectual property assignment clause.
• Failing to write detailed scopes of work, which makes it difficult to hold contractors accountable and leads to wasted donor resources.
• Neglecting to require contractors to declare any personal or financial conflicts of interest with your board members or staff.

Frequently asked questions