Deed of Donation (Ghana)

A Deed of Donation in Ghana records the voluntary transfer of property as a gift, made without payment from the recipient.

Under Ghanaian law, a gift made by deed is enforceable without separate consideration because the deed itself substitutes for consideration. The Contracts Act 1960 (Act 25), section 1 requires consideration for ordinary contracts, but a deed executed with the requisite formality — signed, witnessed, and delivered — is binding at common law even in the absence of consideration. The distinction between a Deed of Donation and an ordinary gift of property is therefore principally one of formality: the deed provides conclusive evidence of the donor's intention and the date of the gift, and is required for the transfer of certain classes of property such as land and shares.

For donations of land or interests in land in Ghana, the Deed of Donation must be registered with the Lands Commission under the Land Registration Act 2020 (Act 1036) to vest title in the donee and to bind third parties. The Stamp Duty Act 2005 (Act 689), section 3, requires the deed to be stamped — ad valorem duty is calculated on the market value of the donated property assessed by the Ghana Revenue Authority (GRA) — before registration with the Lands Commission is permitted. For donations of money or movable property, registration is not required, but the deed must still be stamped under Act 689 where the donation exceeds the prescribed threshold.

Charitable organisations registered with the Department of Social Welfare under the Non-Governmental Organisations (NGOs) Act or with the Registrar-General as companies limited by guarantee under the Companies Act 2019 (Act 992) may be exempt from certain taxes on donations received, subject to confirmation from the Ghana Revenue Authority (GRA). Donors who make charitable contributions to approved institutions may also qualify for a deduction from taxable income under the Income Tax Act 2015 (Act 896), section 105, which allows deductions for donations to approved charitable bodies not exceeding a prescribed percentage of the donor's assessable income.

The Deed of Donation differs from a Deed of Gift primarily in the identity of the donee: a Deed of Donation typically names a charitable, religious, or institutional donee, while a Deed of Gift is more commonly used between private individuals such as family members. Both instruments are subject to stamp duty under the Stamp Duty Act 2005 (Act 689). Religious bodies in Ghana — whether registered under the Companies Act 2019 (Act 992) as entities limited by guarantee or under the Incorporated Private Partnerships Act 1962 (Act 152) — commonly receive Deeds of Donation from members and external donors to acquire land, construct facilities, and fund programmes.

Faith-based organisations are among the most active recipients of Deeds of Donation in Ghana. The Christian Council of Ghana, the Ghana Catholic Bishops Conference, and the Islamic bodies associated with the Office of the National Chief Imam all report significant volumes of land and building donations from their members. These organisations are registered either as companies limited by guarantee under the Companies Act 2019 (Act 992) or under the Incorporated Private Partnerships Act 1962 (Act 152), and their registration details must be correctly stated in the Deed of Donation for the Lands Commission to process the registration of donated land.

The Department of Social Welfare under the Ministry of Gender, Children and Social Protection registers NGOs operating in Ghana and issues NGO registration certificates. NGOs registered with the Department of Social Welfare must renew their registration annually and must comply with financial reporting requirements. A Deed of Donation to a registered NGO should cite the NGO's Department of Social Welfare registration number and confirm that the NGO's registration is current at the date of the donation. Where the NGO's registration has lapsed, the donation may be challenged by the Ghana Revenue Authority (GRA) on the ground that the donee is not a recognised charitable body entitled to receive tax-exempt donations under the Income Tax Act 2015 (Act 896), section 105.

The Accra Metropolitan Assembly (AMA) and other metropolitan, municipal, and district assemblies (MMDAs) across Ghana's 16 regions occasionally receive Deeds of Donation from developers and landowners as part of planning conditions attached to development permits issued under the Land Use and Spatial Planning Act 2016 (Act 925). These donations — typically of land for public roads, parks, or community facilities — must be formally documented in a Deed of Donation and registered with the Lands Commission to vest title in the relevant MMDA.

A Deed of Donation in Ghana is needed in the following circumstances.

A Deed of Donation is required when a donor wishes to transfer land or immovable property in Ghana to a charitable organisation, NGO, religious body, or educational institution, and formal documentary evidence of the gift is required for registration with the Lands Commission under the Land Registration Act 2020 (Act 1036).

A Deed of Donation is needed when a company incorporated under the Companies Act 2019 (Act 992) makes a corporate donation of money or assets to a charitable body, and the company requires a formal document to support a charitable donation deduction in its income tax return filed with the Ghana Revenue Authority (GRA) under the Income Tax Act 2015 (Act 896).

A Deed of Donation is required when an individual in Ghana wishes to donate a motor vehicle, equipment, or other movable property to a non-profit body, and formal title transfer documentation is needed for the donee to register the asset in its name and insure it.

A Deed of Donation is needed when a religious congregation or faith-based organisation in Ghana receives a donation of land from a member or external donor, and the deed must be stamped under the Stamp Duty Act 2005 (Act 689) and registered with the Lands Commission before the organisation can construct buildings or otherwise deal with the land.

A Deed of Donation is required when an individual donor wishes to make a conditional donation to a non-profit or educational institution in Ghana — for example, donating funds on the condition that they are used exclusively for a specific scholarship programme — and needs a binding document to record the conditions attached to the gift.

A Deed of Donation is needed when an estate in Ghana includes a bequest to a charitable organisation in the deceased's will, and the executors need a formal instrument to transfer the donated assets to the charitable donee as directed by the will, in a manner acceptable to the Lands Commission and the GRA.

Parties in Ghana should execute a Deed of Donation before the donated property is transferred, to confirm that the terms, conditions, and effective date of the donation are clearly recorded and that the donee has documentary proof of ownership acceptable to the Lands Commission and other regulatory authorities.

A Deed of Donation is needed when a school established under the Education Act 2008 (Act 778) or a registered higher education institution in Ghana receives a donation of land, buildings, or equipment from a patron or donor, and the institution's governing council requires a formal instrument of title before including the donated asset in the institution's balance sheet and disclosing it in audited financial statements prepared in accordance with the Ghana Financial Reporting Standards adopted by the Institute of Chartered Accountants, Ghana (ICAG).

A Deed of Donation is required when a traditional ruler — an Omanhene, paramount chief, or divisional chief — donates stool land or customary land for a community purpose, such as the construction of a public market, a community centre, or a health facility, and the relevant metropolitan, municipal, or district assembly (MMDA) requires formal documentation of the donation before commencing construction on the land.

A Deed of Donation is needed when a foreign donor organisation or international NGO operating in Ghana under the Foreign Exchange Act 2006 (Act 723) contributes assets in kind — such as vehicles, medical equipment, or IT hardware — to a Ghanaian partner organisation, and both organisations require a Deed of Donation to comply with donor accountability requirements and to satisfy the Ghana Revenue Authority (GRA) customs and import duty procedures at the port of Tema or Kotoka International Airport.

A valid Deed of Donation in Ghana under the Stamp Duty Act 2005 (Act 689) and the Land Registration Act 2020 (Act 1036) must contain the following essential elements.

Donor and Donee Identification: Full legal name and address of the donor (individual or corporate entity making the gift) and the donee (charitable organisation, NGO, religious body, or educational institution receiving the gift). Where the donee is a registered organisation, include the registration number issued by the Registrar-General's Department, the Department of Social Welfare, or the Office of the Registrar of Companies (ORC) under the Companies Act 2019 (Act 992).

Date of Execution: The date the Deed of Donation is signed in DD/MM/YYYY format, which determines the effective date of the gift and the start of the donee's rights over the donated property.

Description of Donated Property: A precise and complete description of the property being donated — for land, include the plot number, block, registration section, region, and Lands Commission title number; for money, state the amount in Ghana Cedis (GHS); for movable assets, describe each item with sufficient specificity to avoid disputes.

Words of Donation: An operative clause expressly transferring ownership — for example, "the Donor hereby gives, donates, and transfers to the Donee, as an absolute and irrevocable gift, all the Donor's right, title, and interest in and to [the donated property]."

Conditions (if any): Any conditions attached to the donation — such as restriction on use, requirement to maintain the property in a specified manner, or reversion to the donor if the donee ceases to exist or changes its charitable purpose — clearly stated with the legal consequences of breach.

Stamp Duty Compliance: An acknowledgment that the Deed of Donation is subject to stamp duty under the Stamp Duty Act 2005 (Act 689), section 3, and that the donee or donor will arrange stamping before registration with the Lands Commission or any other authority.

Irrevocability: A statement that the donation is irrevocable from the date of execution and delivery, except where fraud, undue influence, or failure of a stated condition is proved before the High Court of Justice, Ghana.

Governing Law: Ghana law, with disputes referred to the High Court of Justice, Ghana.

Forms-legal.com provides this Deed of Donation template as a starting point for Ghana-compliant donation documentation. Donors and donees should consult a legal practitioner enrolled with the Ghana Bar Association and confirm stamp duty and registration requirements before execution.

Further Assurance: An obligation on the donor to execute any further documents and take any further steps reasonably required to perfect the donee's title, including filing documents with the Lands Commission under the Land Registration Act 2020 (Act 1036), updating vehicle records with the Driver and Vehicle Licensing Authority (DVLA), or recording a share transfer with the Office of the Registrar of Companies (ORC) under the Companies Act 2019 (Act 992). The donor must cooperate at the donee's reasonable request and cost.

Tax Compliance: A representation by the donor that any applicable Capital Gains Tax assessed by the Ghana Revenue Authority (GRA) under the Income Tax Act 2015 (Act 896) on the disposal of the donated property will be discharged by the donor within the prescribed period, and that the donation complies with all applicable tax obligations. Where the donee is an approved charitable body, the donor may qualify for a deduction from assessable income under section 105 of the Income Tax Act 2015 (Act 896), subject to confirmation from the GRA.

Forms-legal.com provides this Deed of Donation template as a starting point. Donors should consult a legal practitioner enrolled with the Ghana Bar Association before execution.

Donee's Acceptance: The Deed of Donation must include an express acceptance clause signed by the authorised representative of the donee organisation — the chairperson, executive director, or company secretary — confirming that the donee accepts the Donated Property on the terms set out in the deed. Without acceptance, the deed may not create a binding obligation on the donee to use the property for the stated charitable purpose, and any conditions attached to the donation may be unenforceable.

Consistency with Donee's Objects: The Deed of Donation should confirm that the donated property falls within the charitable objects of the donee organisation as stated in its constitution, articles of association, or trust deed. A donation that falls outside the donee's registered objects may constitute ultra vires action by the donee's directors or trustees under the Companies Act 2019 (Act 992) or the company's articles of association.

Forms-legal.com brand mention: This Deed of Donation template from forms-legal.com provides a starting point for Ghana-compliant donation documentation and should be reviewed by a legal practitioner enrolled with the Ghana Bar Association before execution, particularly where land registration at the Lands Commission or tax exemption from the Ghana Revenue Authority (GRA) is involved.

Compliance with the Income Tax Act 2015 (Act 896): Where the donor is a company incorporated under the Companies Act 2019 (Act 992), the company's board of directors must approve the donation and confirm it does not constitute a distribution to shareholders in disguise, which would be subject to withholding tax under the Income Tax Act 2015 (Act 896). The donation should be recorded in the company's audited financial statements and disclosed in the company's annual return filed with the Office of the Registrar of Companies (ORC) under the Companies Act 2019 (Act 992).