Nonprofit Obligations Under a Memorandum of Understanding
1 hour 30 minutes
Learn what a memorandum of understanding is and when one should be used.
A memorandum of understanding (MOU) is an agreement between two (bilateral) or more (multi-lateral) parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used either in cases where parties do not imply a legal commitment or in situations where the parties cannot create a legally enforceable agreement. It is a more formal alternative to a gentlemen’s agreement. Interagency or intergovernment MOUs are probably more prevalent than non-governmental MOUs. However, the concepts are the same. It is a major undertaking for a government to enter into a binding arrangement, thus they use nonbinding MOUs.
• You will be able to define memorandum of understanding.
• You will be able to recognize when to use an MOU.
• You will be able to identify if an MOU is binding.
• You will be able to describe the different components of an MOU.