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Donations are given without return consideration. This lack of return consideration means that, in common law, an agreement to make a donation is an “imperfect contract void for want of consideration.” Only when the donation is actually made does it acquire a legal status as a transfer of property.
In politics, the law of some countries may prohibit or restrict the extent to which politicians may accept gifts or donations of large sums of money, especially from business or lobby groups (see campaign finance). Donations of money or property to qualifying charitable organizations are also usually tax-deductible. Because this reduces the state’s tax income, calls have been raised that the state (and the public in general) should pay more attention to ensure that charities actually use this ‘tax money’ in suitable ways.
There have been discussions on whether also a donation of time should be tax-deductible.
The person or institution giving a gift is called the donor, and the person or institution getting the gift is called the donee.
~ source: Wikipedia