Types of contract
AgoraNatura allows people to collaborate so that nature conservation projects can be brought to life. In buying nature conservation certificates, project suppliers and investors enter into a contract with one another. The person or organisation proposing a project (project supplier) decides on one of three types of contract.
In a fundraising agreement, the investment (i.e. donation) may only be used for the actions described in the project. From a legal perspective, however, there is no obligation to achieve the desired outcomes. A fundraising project can only be offered if the project supplier can provide official documents, from the relevant financial authority, proving that they work as a non-profit. They must also be able to prove that they are pursuing charitable actions with the investment. In this case, the investor will also receive a certificate of charitable contribution.
In a service agreement, the project supplier is bound to implementing the actions described in the project. This includes documenting and monitoring the desired outcomes. Legally, however, there is no obligation to achieve the desired outcomes. This type of contract is interesting for project suppliers who do not have official documents from a financial authority proving that they are a non-profit.
In a working contract, the project supplier must achieve a specific project goal. As well as ensuring a project’s actions and documentation, there is a commitment to achieve a predefined goal. In this case, the project outcome, not its actions, is rewarded. Hence, such a project only needs to provide evidence that the specified goal has been achieved rather than reporting on the actions being implemented. If the goal is not achieved, the investors can demand a refund of their payments. Due to stricter requirements and higher risk associated with such a commitment, project suppliers with this type of contract will calculate higher costs.