donees

A donee is a person or organization that receives a gift or donation. In legal terms, a donee is the recipient of a transfer of property or rights made without consideration by the donor. The counterpart is the donor, the party that gives the gift. The concept is used across contract law, property law, and tax law to distinguish the recipient from the giver.

For a gift to be legally effective, three elements are typically required: intent by the donor to make a present transfer, delivery or relinquishment of the item or right to the donee, and acceptance by the donee. If any element is missing, the transfer may not constitute a valid gift. The term applies to both tangible items and intangible rights, including money, property, or even services in some contexts.

Donees can be individuals, charitable organizations, corporations, or other entities. When a gift is made to a charity or permitted nonprofit, the recipient is often described as a charitable donee, which can carry regulatory or tax implications in certain jurisdictions. In estate planning and philanthropy, gifts designated to named donees are common tools for transferring wealth or supporting causes.

Tax and accounting considerations vary by jurisdiction. Generally, the donor bears any gift tax or reporting obligations, while the donee does not owe tax on simply receiving a gift. However, receiving large gifts may trigger reporting requirements or affect future tax treatment, such as the basis used for capital gains if the gifted asset is sold.

Etymology-wise, donee derives from the idea of receiving a donation; the term is commonly used in legal and charitable contexts to denote the recipient.