Memorandums of Understanding


The Donations/Distributions Committee, in concert with the Treasurer, recommends to the Board any Memoranda of Understanding (MOU), Letter of Agreement (LOA) or other arrangements to be made between Friends of Lesotho, Inc. (FOL) and an individual or group.  Board approval for all MOUs and LOAs is required prior to any distribution of funds.

Individuals and/or organizations entering into an MOU or LOA are expected to provide a an accounting for how funds were used.


MOUs are typically used when a PCV or RPCV seeks to raise funds for a project which may be on-going or have a long-term timeframe with an end date. As a registered non-profit, FOL helps facilitate the receipt and disbursement of funds raised for the project. FOL may also enter into an MOU directly with a Lesotho-based NGO or other organization as a way to raise funds for worthy projects not necessarily associated with a PCV or RPCV. MOUs of this type are based on FOL’s first hand knowledge of or research of the NGO or organization seeking financial support.


LOAs are a donation made from FOL funds to a person or organization working in Lesotho and are meant to ensure that the donation will be used in an agreed upon way. LOAs are typically used for short-term projects.

SAMPLE Memorandum of Understanding (MOU)

MOU: [Project Name]


This Memorandum of Understanding is being entered into by Friends of Lesotho, Inc.(FOL-USA), a nonprofit 501(c)(3) corporation, and [PROJECT NAME] for the purpose of assisting [PROJECT NAME] in its fund raising activities.

1. FOL-USA has made a determination that [PROJECT NAME] is a worthy cause, providing [DESCRIPTION OF PROJECT].   FOL-USA is prepared to accept donations from persons who indicate that they wish the funds to be used for [PROJECT NAME], and to forward the funds to [PROJECT NAME] by [WIRE TRANSFER?  CHECK?  ADDRESS TO WHICH IT WILL BE MAILED].

2. FOL-USA will forward all funds received to date to [PROJECT NAME] on [DATE(S)], with a final dispersal if needed on [DATE].  Any donations received after the final dispersal date will be deposited to FOL-USA’s general funds.

3.  It is anticipated that this project will be complete by [DATE], with a final report due to FOL-USA by [DATE], and this MOU to be closed upon FOL-USA’s receipt of the final report.

4. FOL-USA may deduct the cost of wire transfers, credit card processing fees, online donation service fees, and other actual expenses incurred in the receipt, transfer and handling of donations for [PROJECT NAME].

5.  Per FOL-USA policy, these funds may not be used for international travel to/from Lesotho.

6. [PROJECT NAME] shall provide to FOL-USA copies of all fund-raising or other materials that mention FOL-USA as well as an annual financial and activities report.

7. The contact person for FOL-USA shall be [NAME] at email address:   [EMAIL ADDRESS].    The contact person for the [PROJECT NAME] shall be [NAME] at email address:  [EMAIL ADDRESS].

8. FOL-USA and [PROJECT NAME] each may terminate this arrangement at any time for any reason upon providing one month’s written notice by letter or e-mail to the other party. FOL-USA will make every effort to forward any donations received subsequent to the termination to [PROJECT NAME] unless either [PROJECT NAME] has indicated otherwise or the FOL-USA Board of Directors determines that there are circumstances that require FOL-USA to return some or all such donations to the donors.

Agreed to by the FOL-USA Board of Directors at a meeting held on [DATE].

Signed: [NAME] (by email), President, FOL-USA

Agreed to by [PROJECT NAME] on [DATE].

Signed: [NAME] (by email) on behalf of [PROJECT NAME]

SAMPLE Letter of Agreemeent (LOA)


Our Donations/Distribution Committee met recently and discussed your project and agreed to issue an FOL grant of $________.  The conditions for the grant are:

We require that the funds be used for the purpose of direct assistance to the Basotho either through the purchase of supplies or other tangible provisions for the __________________ (project or group name), located in ______________________________(district and village). Funds may also be used for in-country transportation expenses relevant to the project needs.

Upon completion of the project, you will provide a description of how the money was used (with receipts); and submit a brief synopsis along with pictures, if available, describing the project(s) for which the FOL funds were used in Lesotho.

The purpose of the formality of an LOA is to ensure accountability to our members.

If you agree to these conditions, please sign this letter below and return it to me at which time we will coordinate with you the best way to get the funds to you.

We greatly appreciate the efforts you are making in Lesotho and wish you success in this endeavor.


Donations Committee Chairperson

cc:  FOL, President

FOL Treasurer

Agreed: __________________________      Date: __________________________

Signature of Grantee

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