7/2/2023 0 Comments Mou sample![]() Risk Sharing: Another critical element of an MOU is a description of who will bear the risk of a mishap.These should be spelled out in detail including which entity will pay for each item and when payment is due and to whom. Financial Arrangements: A typical partnership will have financial implications.It may also be worthwhile to disclaim what the partnership is not intended to do, guarantee, or create. Disclaimers: Many MOUs will contain one or more disclaimers, including one indicating that employees of Organization A are not to be considered employees, borrowed or otherwise, of Organization B and vice versa.Clarifying responsibilities is the number one purpose of a written agreement. In many cases, this section of the agreement will be the most detailed and lengthy. List each group’s sole responsibilities, followed by a description of shared responsibilities, if any. It is generally more effective to describe each organization’s responsibilities separately, beginning with the items that are an organization’s sole responsibility. Assignments/Responsibilities: This important section of the MOU describes the duties and responsibilities of each partner.The Period: Specify a time period for the partnership with start and end dates.It should generally be specific to indicate the types of organizations (“a nonprofit corporation headquartered in the District of Columbia”). The Parties: The next clause in an MOU describes the parties to the agreement.Ulterior motives have no place in effective partnerships. The overall intent clause must accurately reflect what the parties are intending to do. “Whereas the mission of We CARE is to provide hot meals to homeless persons living in the District of Columbia, and the mission of We DELIVER is to deliver food to homeless persons living in the District of Columbia, the organizations hereby agree to collaborate in developing an integrated food preparation and delivery system ‘beginning September 1, 2008.” Overall Intent: Many MOUs begin with a brief description of the overall intent of the parties, such as.As with any contract, it is critical to obtain legal counsel before obligating your nonprofit. Since each project and its partners are unique, the following suggestions are provided as an example. There are a number of elements that should be contained in a typical Memorandum of Understanding. The refusal to put anything in writing is a red flag and may be sufficient reason not to proceed with the arrangement. your partner‘s overall commitment to the project,.how each organization will assess or evaluate the success of the project and.what aspects of the project your partner is willing to be responsible for.what specifically the partner is willing to promise (ambitious projections may dissipate as your partner commits to something realistic). ![]() whether your partner has liability and other types of insurance.the corporate structure of your partner (don’t assume!).In many cases, you will learn vital information such as: You will learn how responsive your partner will be-are your calls returned promptly? Does your partner give the partnership the attention and seriousness it requires? You may also learn how your partner reacts when you disagree on an issue. The process of developing an MOU is an instructive and potentially invaluable experience in partnering. An effective Memorandum of Understanding (MOU) prevents misunderstandings and disputes by clarifying the expectations of the partners.
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