SAMPLE FACILITY RENTAL AGREEMENT
From Canadian Christian Charities Council (CCCC)
Your contract must clearly set out the terms and conditions expected of both parties. As with your rental policy, this agreement should be reviewed by legal counsel and by your insurance agent.
A well-written agreement is important for the board to meet its fiduciary duties to make best use of the charity’s assets and to properly protect those assets, along with the people using them.
Suggested Rental Agreement content would include, but not be limited to, the following:
1) A statement that the Rental Agreement is subject to the charity’s Facility Rental Policy.
2) A waiver of legal liability.1
3) A disclaimer stating that the charity denies responsibility for liability in the circumstances listed. Your disclaimer may also include statements that deny endorsement of rental activity.
4) Indemnification (i.e., a declaration that the renter indemnifies your charity for any legal liability arising out of bodily injury or property damage caused by the renter’s negligence).
5) A declaration that the renter has been provided with a copy of the Facility Rental Policy and agrees to abide by it.
6) Particulars of the rental arrangement:
- Name and contact information of person in charge of the tenant at the event.
- Name and contact information of the charity representative.
- Specific details of what areas of the property are rented and what is not.
- Start and end times of the rental period.
- Number of participants, within legal maximums (e.g., to meet Fire Code limits).
- Rental fee(s).
- A list of the personnel that the charity will provide (e.g., charity representative, custodian, set-up/take-down crew, technical service personnel, musicians) and all associated fees hiring such personnel.
- A requirement that the tenant obtain a certificate of insurance (note: your charity should ask for specific coverage, as guided by your insurance provider, with acceptable proof of coverage).
- Declaration that the agreement comes into force only upon the signature of all documentation and the exchange of all signed documents.
- Other clauses as recommended by your legal advisor and insurance provider.
1 Please access the following CCCC Bulletin article for background information: www.cccc.org/bulletin_article/396. This CCCC template may be used to as a starting point for your discussion with your legal counsel: www.cccc.org/members_sample_documents_view/html/38
This sample document is provided as a general guideline to assist CCCC member charities of which The Free Methodist Church in Canada is an active member. We would encourage local churches to consider the benefits of a CCCC membership.
This information does not constitute legal or other professional advice.
Appropriate modifications are required to suit the facts applicable to each situation.
Where the intent is to use this sample, it should be provided to legal counsel along with appropriate instructions to meet the specific needs and circumstances of the charity.