A Memorandum of Understanding (MOU) is a formal agreement between two or more parties/organizations outlining the terms and details of a collaborative effort, relationship, or understanding (not a sponsorship). MOUs are often used when two organizations or entities wish to work together on a project, event, or initiative without forming a legally binding contract. Instead, MOUs serve as a precursor to a formal contract or as a means of establishing the framework for collaboration.
When you need an MOU
An MOU is not needed in the case of a simple cash or in-kind sponsorship from a supporting company. MOUs are ONLY necessary to outline the terms of a collaborative arrangement between the HBA and an outside/non-sponsor entity, such as another nonprofit or event organizer, to achieve mutual goals.
Examples of situations that may need an MOU are:
- An HBA component wishing to co-plan an event with a mission-adjuacent non-profit and share planning responsibilities and expenses
- Another conference or program wishing to promote to the HBA's members
- An HBA component and other event organizer wishing to enter into a mutually beneficial agreement (such as trading thought leadership, promotion, and/or other non-monetary benefits)
If your component desires to enter into an agreement/joint venture with another organization (that is not a Corporate Partnership or standard event sponsorship), please complete the form below outlining the agreement and terms.
While cash and in-kind sponsorships can be signed off on by your regional treasurers, MOUs require additional review by HBA Central to ensure the agreement is mutually beneficial and agreeable based on HBA policy/not in conflict with key strategic initiatives. Please send completed agreements to HBA Central Finance (send to finance@hbanet.org) for review/signature by HBA's CFO.
Reminder: the HBA is a 501c6 not-for-profit organization and cannot provide cash sponsorship to other organizations as part of any agreement.
