A donation agreement involves the donor giving or promising something to the donee out of pure generosity This gratuitous disposal often includes that of property, causing the enrichment of the donee’s estate and the impoverishment of the donors estate. The resulting agreement may become complex and it is important to take into account the financial implications (such as transfer duty and donation tax), exemptions,  as well as understanding the transaction at hand.  Donation agreements needs to be considered carefully and a deed of donation can simplify the donation process.