Drafting a Charity Collaboration Agreement: A Practical Guide | LegalDocuments.co.uk

What this document is

A charity collaboration agreement is a written contract between two or more organisations that sets out how they will work together on a defined piece of work. It is not a merger, and it does not usually create a separate legal entity, each party keeps its own identity, governance and assets, but agrees to pool certain resources, effort or funding for a shared aim.

These agreements sit alongside your charity's governing document and trustee duties, they do not replace them. Trustees remain responsible for acting in the charity's best interests and ensuring the arrangement furthers its charitable objects. The Charity Commission expects trustees to document significant collaborative arrangements, particularly where funds are being committed or reputational risk is involved.

Collaboration agreements vary enormously in size. A small grant-funded project between two local charities might fit on a few pages. A multi-partner consortium bidding for a large public sector contract may run to a long schedule of responsibilities, funding flows, intellectual property provisions and exit terms.

The structure is flexible, but the underlying purpose is the same: to make the partnership's rules explicit so that everyone involved can get on with delivering the work.

How to use this document

1. Define the shared purpose and scope. Start by writing down, in plain language, what the collaboration is actually for. Identify the specific project, service, campaign or funding bid you are joining forces on, and set clear boundaries around what falls inside the arrangement and what each organisation continues to do independently. A vague purpose is the single biggest cause of later disagreement between charity partners. 2. Allocate roles, responsibilities and decision-making. Map out which partner does what, who leads on which workstreams, and how joint decisions will be reached. Consider whether you need a steering group, how often it will meet, what counts as a quorum, and how disputes will be escalated. Be realistic about the capacity each organisation can genuinely commit, rather than assuming goodwill will fill the gaps. 3. Agree the funding, contributions and financial controls. Set out where the money is coming from, how it flows between partners, who holds it, and how spending is approved and reported. Cover in-kind contributions like staff time or premises as well as cash. If you are receiving restricted funding from a grant-maker or commissioner, check that the agreement reflects any conditions attached, including audit rights and reporting deadlines. 4. Address intellectual property, data and branding. Decide who owns materials created during the collaboration, whether that's research, training content, software or campaign assets, and who can use them after the project ends. Where personal data is being shared, a separate data sharing arrangement may be needed to meet UK GDPR obligations. Think carefully about how each charity's brand and logo can be used in joint communications. 5. Set out duration, review and exit arrangements. Specify when the collaboration starts, how long it runs, and what triggers review or extension. Include termination provisions covering notice periods, what happens to unspent funds and shared assets, and any ongoing obligations such as confidentiality or reporting to funders. Exit clauses feel unnecessary when relationships are strong, which is precisely why you need to draft them early.