A director charitable award plan agreement is one that is entered into between a company and its board of directors. This agreement gives the right to the director of the company to offer a specified amount as charity to any organizations that he deems fit for the same. This form of charity provides tax exemption for the company and also thereby helps in better financial management of the company. The agreement provides all the essentials for the charitable amount given by the company as decided by the board of directors of the company.
The agreement provides all the essentials of the director charitable award plan such as the purpose of the plan, the name of the charitable donee selected by the company directors, the address of the donee that is selected, the amount that has been assigned for donation, mode of amount being donated to donee, the eligibility criteria that has been applied etc.
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