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Non Profit Non Compete Agreement Template for United States

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Key Requirements PROMPT example:

Non Profit Non Compete Agreement

"Need a Non Profit Non Compete Agreement for our environmental charity's new Executive Director starting March 2025, with specific focus on protecting our donor relationships and restricting work with similar environmental organizations within a 100-mile radius for 18 months post-employment."

Document background
The Non-Profit Non-Compete Agreement serves as a critical tool for charitable organizations seeking to protect their interests, donor relationships, and operational methods. Used primarily when onboarding key personnel or during leadership transitions, this agreement establishes reasonable restrictions on post-employment competitive activities while adhering to U.S. state-specific regulations and non-profit law requirements. The document typically includes specific provisions for duration, geographic scope, and permitted charitable activities, ensuring both organizational protection and continued commitment to public benefit.
Suggested Sections

1. Parties: Identifies the non-profit organization and the individual/entity bound by the agreement

2. Background: Establishes context and relationship between parties, charitable purpose

3. Definitions: Defines key terms including competitive activities, confidential information, territory

4. Scope of Restrictions: Details prohibited competitive activities and charitable work

5. Duration: Specifies time period for restrictions

6. Geographic Limitations: Defines territorial scope of restrictions

7. Confidentiality Obligations: Protects sensitive organizational information

8. Enforcement: Remedies and procedures for breach

Optional Sections

1. Garden Leave: Optional section for paid non-compete period, typically used for executive-level agreements

2. Severance Provisions: Optional section for compensation during restriction period when offering financial consideration

3. Charitable Exception Clause: Optional section allowing certain charitable activities when restrictions might impact charitable work

Suggested Schedules

1. Schedule A - Restricted Activities: Detailed list of prohibited activities

2. Schedule B - Geographic Territories: Maps or detailed description of restricted areas

3. Schedule C - Compensation Details: Details of any consideration, if applicable

4. Appendix 1 - Confidential Information: Specific types of protected information

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

Internal Revenue Code 501(c)(3): Federal tax code requirements governing non-profit organizations' operations and maintaining tax-exempt status

Federal Antitrust Laws: Sherman Act and Clayton Act provisions regulating competition and monopolistic practices that must be considered in non-compete agreements

Federal Trade Commission Regulations: Federal regulations governing fair competition and consumer protection that may impact non-compete terms

Defend Trade Secrets Act: Federal law providing uniform protection for trade secrets, relevant for confidentiality provisions in non-compete agreements

State Non-Compete Statutes: State-specific laws governing the enforceability and limitations of non-compete agreements, varying by jurisdiction

State Non-Profit Regulations: State-specific laws governing non-profit organizations' operations and compliance requirements

State Trade Secret Laws: State-specific protections for trade secrets that complement federal law and inform confidentiality provisions

State Charitable Organization Laws: State regulations specifically governing charitable organizations' operations and compliance

Reasonableness Standards: Legal standards requiring non-compete agreements to have reasonable duration, geographic scope, and scope of prohibited activities

Public Benefit Considerations: Legal requirement to balance competitive restrictions with the non-profit's charitable purpose and public benefit mission

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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