Memorandum of Understanding Template

A free memorandum of understanding template for two or more organizations that want to work together and record the plan in writing before any binding contract exists. Download it in PDF or Word, fill in the bracketed fields, and sign.

Last updated: August 5, 2026

What Is a Memorandum of Understanding?

A memorandum of understanding, usually shortened to MOU, is a written statement of a shared intention between two or more organizations. It describes what the parties plan to do together, what each side will contribute, who runs the relationship day to day, and how long the cooperation is expected to last. Nonprofits, universities, agencies, hospitals, trade associations, and companies exploring a partnership all use MOUs to get the plan on paper while the lawyers are still months away from a definitive contract.

The defining feature of an MOU is that most of it is deliberately not enforceable. The cooperation terms describe an intention, not a promise, so neither side can sue the other for failing to deliver on them. A small number of provisions are usually meant to bind, most often confidentiality, allocation of costs, and governing law. Because a court will look at the actual wording rather than the title on the cover page, the single most important section in any MOU is the one that says plainly which parts bind and which parts do not.

When to Use This Template

  • Two organizations want to record a cooperation plan before drafting a binding contract
  • A grant, board, or funder wants written evidence that the partners are aligned
  • You are coordinating a joint program, referral flow, research project, or shared event
  • Each side will contribute staff, facilities, data, or equipment but no money changes hands
  • You need a clear exit route if the collaboration does not develop as expected
  • Both sides want confidentiality protection while they explore working together

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Full text of the template. Fields in [BRACKETS] are placeholders you fill in.

Memorandum of Understanding

  1. 1. 1. Parties

    This Memorandum of Understanding (the "MOU") is made as of [EFFECTIVE DATE] between [ORGANIZATION A NAME], a [ENTITY TYPE] with its principal office at [ORGANIZATION A ADDRESS], and [ORGANIZATION B NAME], a [ENTITY TYPE] with its principal office at [ORGANIZATION B ADDRESS]. Each is referred to as a "Party" and both together as the "Parties." Each Party represents that the individual signing below has authority to sign this MOU on behalf of that organization, and that signing it does not conflict with the governing documents, funding conditions, or existing agreements of that organization. Notices under this MOU are effective when delivered in writing to the addresses above and to [ORGANIZATION A EMAIL] and [ORGANIZATION B EMAIL].

  2. 2. 2. Purpose and Scope of the Collaboration

    The Parties intend to cooperate on the following: [DESCRIPTION OF THE COLLABORATION, e.g., a joint community health program, a shared research initiative, a co-hosted training series] (the "Collaboration"). The shared goals of the Collaboration are [GOAL 1], [GOAL 2], and [GOAL 3], to be pursued in [GEOGRAPHIC AREA OR MARKET SEGMENT] over the period described in Section 8. Activities outside that description are not part of this MOU and require a separate written understanding. The Parties acknowledge that the Collaboration is exploratory and cooperative in nature, that plans described here may change as the work develops, and that nothing in this section obligates either Party to carry out any specific activity or to reach any particular result.

  3. 3. 3. Roles and Responsibilities

    [ORGANIZATION A NAME] anticipates that it will [ROLE A RESPONSIBILITIES, e.g., design the program curriculum, recruit participants, and report outcomes to funders]. [ORGANIZATION B NAME] anticipates that it will [ROLE B RESPONSIBILITIES, e.g., provide meeting space, supply qualified instructors, and handle scheduling]. Both Parties intend to jointly [SHARED RESPONSIBILITIES, e.g., review progress quarterly, approve public materials, and coordinate outreach]. Each Party will carry out its role in accordance with its own policies, governing law, and the requirements of its funders, and each Party retains full discretion over its own personnel, budgets, and program decisions. The descriptions in this section state present intentions and expected contributions; they are not enforceable commitments and are subject to Section 7.

  4. 4. 4. Resources and Contributions

    Each Party anticipates contributing the following to the Collaboration at its own cost: [ORGANIZATION A CONTRIBUTIONS, e.g., staff hours, data sets, equipment, facilities] and [ORGANIZATION B CONTRIBUTIONS, e.g., venue access, software licenses, volunteer coordination]. Any property, equipment, or materials supplied by a Party remain the property of that Party and will be returned or accounted for when the Collaboration ends. Each Party retains ownership of the intellectual property it brings to the Collaboration, and no license to use the name, logo, trademarks, data, or materials of a Party is granted by this MOU except as separately agreed in writing. If the Parties expect to create joint intellectual property, they will address ownership and licensing in a definitive written agreement before that work begins.

  5. 5. 5. Points of Contact and Coordination

    Each Party designates a primary point of contact who is responsible for day-to-day coordination and for receiving communications under this MOU. For [ORGANIZATION A NAME], the contact is [CONTACT A NAME], [TITLE], reachable at [CONTACT A EMAIL] and [CONTACT A PHONE]. For [ORGANIZATION B NAME], the contact is [CONTACT B NAME], [TITLE], reachable at [CONTACT B EMAIL] and [CONTACT B PHONE]. Either Party may change its point of contact by written notice to the other. The points of contact will meet [MEETING FREQUENCY, e.g., monthly] to review progress, surface issues, and agree on next steps, and will keep a written summary of what was discussed. A point of contact has no authority to bind the organization that appointed them to any legal or financial obligation.

  6. 6. 6. Confidentiality and Public Statements

    In the course of the Collaboration, each Party may receive non-public information from the other, including program data, financial figures, donor or customer lists, personnel records, strategic plans, and unpublished research (the "Confidential Information"). The receiving Party will use Confidential Information only for the Collaboration, will protect it with at least the same care it uses for its own confidential material, and will disclose it only to personnel who need it and who are bound by comparable duties. These duties do not apply to information that is public through no fault of the receiving Party, was already known without a duty of confidence, is independently developed, or must be disclosed by law or under a public records request after reasonable notice to the other Party. Neither Party will issue a press release or public statement describing the Collaboration without the prior written approval of the other. This section is intended to be binding and survives for [CONFIDENTIALITY PERIOD, e.g., three years] after this MOU ends.

  7. 7. 7. Binding and Non-Binding Provisions

    The Parties intend that the following provisions are legally binding and enforceable: Section 6 (Confidentiality and Public Statements), Section 9 (No Partnership, Agency, or Financial Obligation), Section 10 (Governing Law and General Provisions), and this Section 7. Every other provision of this MOU, including Section 2 (Purpose and Scope), Section 3 (Roles and Responsibilities), Section 4 (Resources and Contributions), Section 5 (Points of Contact), and Section 8 (Term and Withdrawal) to the extent it describes intended activities, is a statement of present intention only and creates no legal obligation, no duty to negotiate, no duty to continue the Collaboration, and no liability of any kind for failing to carry out anything described in it. No obligation to perform the Collaboration arises unless and until the Parties sign a separate definitive written agreement approved by the authorized representatives of both Parties.

  8. 8. 8. Term, Withdrawal, and Termination

    This MOU takes effect on the Effective Date and continues until [END DATE], unless extended by a written amendment signed by both Parties or ended earlier under this section. Either Party may withdraw from the Collaboration for any reason or no reason by giving [WITHDRAWAL NOTICE PERIOD, e.g., 30 days] written notice to the other Party, and no penalty, damages, or termination payment of any kind is owed for withdrawing. On withdrawal or expiration, the Parties will wind down joint activities in an orderly way, notify any shared participants or funders as appropriate, return or dispose of Confidential Information as required by Section 6, and return the property of the other Party. Sections 6, 7, 9, and 10 survive the end of this MOU.

  9. 9. 9. No Partnership, Agency, or Financial Obligation

    Nothing in this MOU creates a partnership, joint venture, agency, employment, franchise, or fiduciary relationship between the Parties. Neither Party may act for, sign on behalf of, incur any obligation in the name of, or otherwise bind the other Party, and neither Party will represent to any third party that it has authority to do so. Neither Party assumes any financial obligation to the other under this MOU, and no Party is required to transfer funds, reimburse costs, or pay any fee. Each Party bears its own costs and expenses of participating in the Collaboration, including staff time, travel, legal fees, and administrative overhead, unless a separate signed agreement provides otherwise. This MOU is non-exclusive, and each Party remains free to pursue similar collaborations with any other organization.

  10. 10. 10. Governing Law and General Provisions

    This MOU is governed by the laws of the State of [GOVERNING STATE], without regard to its conflict of laws rules. The Parties will attempt in good faith to resolve any disagreement about this MOU through discussion between the points of contact and, if that fails, through escalation to a senior representative of each Party for at least [ESCALATION PERIOD, e.g., 30 days] before pursuing any other remedy. This MOU may be amended only in a writing signed by both Parties, and neither Party may assign it without the written consent of the other. If any provision is held unenforceable, the remainder stays in effect. This MOU is the entire understanding of the Parties on the subject described here and replaces all prior discussions, term sheets, and correspondence about the Collaboration.

  11. 11. 11. Signatures

    By signing below, each Party confirms that it has read this MOU, that it understands which provisions are binding and which are not, and that the individual signing has authority to do so on behalf of the organization named. [ORGANIZATION A NAME]. Signature: ______________________. Printed Name: [SIGNER A NAME]. Title: [TITLE]. Date: [DATE]. [ORGANIZATION B NAME]. Signature: ______________________. Printed Name: [SIGNER B NAME]. Title: [TITLE]. Date: [DATE]. This MOU may be signed in counterparts, and electronic or scanned signatures have the same effect as original signatures on a single document.

  12. 12. Disclaimer

    This template is provided for general informational purposes only and is not legal advice. Whether a memorandum of understanding creates enforceable obligations depends on the exact wording, the conduct of the parties, and the law of the applicable state, and public agencies, universities, and grant-funded organizations often face additional rules on what they may sign. Review and adapt this document for your own facts, and consult a licensed attorney before relying on it for a significant relationship. Use of this template does not create an attorney-client relationship with ScanContract.

Key Clauses Explained

What each important clause does — and what to watch out for before you sign.

Binding and Non-Binding Provisions

States exactly which sections create enforceable obligations and which are statements of intention only.

This is the clause that decides whether the whole document is a handshake or a contract, and it is the one people skim. If it is missing, vague, or contradicted elsewhere, a court may read parts of the MOU as an enforceable agreement based on the words used and how the parties behaved. Check that the list of binding sections matches what you actually intend, and delete any language elsewhere that says a Party "shall" or "must" do something you never meant to promise. If you are the side counting on the collaboration happening, understand that this clause means you have no legal remedy if the other side simply stops.

Purpose and Scope of the Collaboration

Describes what the organizations intend to do together and where the boundaries of that work sit.

A purpose written at slogan level makes the rest of the MOU impossible to apply, because nobody can tell whether a new activity is inside or outside the plan. Name the program, the population or market, and the geography. Watch for scope language broad enough to imply a commitment of resources you never approved internally, especially if your board or funder will see this document as a promise.

Roles and Responsibilities

Records what each organization expects to contribute to the collaboration in practice.

Because this section is normally non-binding, the risk is not legal but operational: whoever writes it tends to allocate the heavy lifting to the other side. Read your own role and ask whether your team can actually staff it, and whether any of it needs board, union, or funder approval you do not yet have. If a specific contribution truly must be guaranteed, take it out of the MOU and put it in a short binding side agreement instead.

Resources and Contributions

Confirms that each side keeps ownership of what it brings and grants no license by default.

The trap here is intellectual property created jointly during the work, which this MOU deliberately does not allocate. If your team is about to co-develop curriculum, software, a data set, or research results, settle ownership in writing before that work starts, not afterward. Also check that no logo or trademark use is being granted by implication, since co-branded materials produced under an MOU are a common source of later disputes.

Confidentiality

Protects the non-public information each side shares while the collaboration is explored.

Confidentiality is usually one of the few genuinely binding parts of an MOU, so read it as you would read a standalone NDA. Check the duration, whether it covers information shared before signing, and whether the standard exceptions are present. Public agencies and public universities should confirm the public records carve-out is there, because an obligation they cannot legally keep is worse than no clause at all.

Term and Withdrawal

Lets either organization exit on notice without penalty and sets how the work is wound down.

A no-penalty exit is normal in an MOU and is the point of using one, but it means you should not build a budget, hire staff, or commit to a funder based on this document alone. If participants, students, or patients are mid-program, make sure the wind-down language covers finishing the current cycle rather than stopping on the notice date. Confirm that confidentiality and property return survive the exit.

No Partnership, Agency, or Financial Obligation

Prevents the collaboration from being treated as a legal partnership and confirms that no money is owed.

Without this clause, close cooperation and shared public branding can create the appearance of a partnership, which can expose one organization to liability for the acts of the other. Confirm that neither side can sign contracts or make public commitments in the name of the other. Also confirm the cost allocation matches reality: if one side is genuinely expected to reimburse the other for anything, that arrangement belongs in a signed agreement, not in an MOU that says no money is owed.

Frequently Asked Questions

Is a memorandum of understanding legally binding?
Usually not for the cooperation terms, but that depends on the wording rather than the title. A well-drafted MOU says plainly that the substantive terms are statements of intention and that only a short list of provisions, typically confidentiality, cost allocation, and governing law, is enforceable. If an MOU uses mandatory language, describes payment, and is acted on as a contract, a court can treat parts of it as binding anyway. Always read the binding and non-binding section before signing.
What is the difference between an MOU and a contract?
A contract creates enforceable obligations backed by consideration, and a party that fails to perform can be sued. An MOU records a shared plan and generally creates no right to sue over the plan itself. Organizations use an MOU when the relationship is real but the details, budgets, or approvals are not ready, and then replace or supplement it with a definitive agreement once those are settled.
Can money change hands under an MOU?
It can, but that is a sign you probably need a contract instead. This template states that neither side owes the other anything and that each bears its own costs, which is the standard arrangement. Once funds, reimbursements, or fees are involved, you need enforceable payment terms, invoicing rules, and a remedy for nonpayment, and none of those work in a document that is deliberately non-binding.
How do we end an MOU early?
Either organization can withdraw by giving written notice within the period set in the term section, commonly 30 days, and no penalty is owed. Good practice is to notify shared participants, funders, and staff at the same time, return any property or confidential material, and confirm the wind-down in writing. Remember that confidentiality obligations continue after the MOU ends.
Do both organizations need board approval to sign an MOU?
That depends on the governing documents and internal policies of each organization, not on the MOU itself. Many nonprofits, public agencies, and universities require board or executive approval for anything that commits the name of the institution, even when no money or binding duty is involved. Check your own signature authority policy first, and make sure the person signing on the other side actually has authority too.

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