Checklist for Your MOU or Contract

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The information presented in this resource is offered for general informational purposes only, and is not offered as and does not constitute legal advice.

The items discussed in designing and negotiating your partnership will need to be formalized in a written document, such as a MOU or contract, that defines your partnership. While each MOU or contract is unique, there are many common items across them that will likely be included. Proactively addressing any concerns while drafting the MOU or contract is in the best interests of all parties to promote successful collaboration.

Your MOU or contract should be customized to the capability and resources of the community college and the Head Start program and should consider the unique characteristics of your community. Both parties should consult with legal counsel to assess whether a MOU or contract is best and to draft specific terms.

Community colleges will have in-house general counsel who will likely prefer to draft the agreement. Given the larger staff capacity at colleges, this can be a benefit to both sides. However, the Head Start program should still have legal counsel review the MOU or contract.

What Is the Difference Between a MOU and a Contract?

Memorandum of Understanding (MOU): A MOU is a document that states each party's intentions to take action in pursuit of shared goals, such as collaborating on a project, but is not intended to be legally binding. With some exceptions, this means that if one of the parties does not follow through on helping to meet the goals of the MOU, the other party cannot legally enforce the MOU against them in court. MOUs are generally considered less formal than contracts due to this lack of legal enforceability, but can be useful in outlining a general working relationship between two parties. They can also help lay the groundwork for a formal contract further into a collaboration. MOUs are often required of an agency when an application for funds includes an explicit non-financial collaboration with partnering organizations. The MOU provides documentation that demonstrates the organizations have consulted and coordinated the responsibilities of their grant activities.

Contract: A contract is a legally enforceable document in which there is an exchange of promises between two or more parties for something of value (legally referred to as “consideration”). Contracts specifically detail the obligations of each party and usually describe the penalties for breaking the agreement. Contracts are frequently used in commercial exchanges of goods and services for monetary compensation.

Leases are a type of contract. A lease is a contract outlining the terms under which one party agrees to rent an asset—in this case, property—owned by another party. It guarantees the lessee, also known as the tenant, use of the property and guarantees the lessor (the property owner or landlord) regular payments for a specified period in exchange.

Checklist for Your MOU or Contract

Whether you are using a MOU or contract format to formalize your agreement, it is important to address key topics within the document. This will help set expectations for how the collaboration will proceed and decrease the chances of future disputes over responsibilities.

Items to consider incorporating into the MOU or contract include, but are not limited to:

MOU or contract term (with start and end dates specified)

• Options for early cancellation, if desired

• Loss of funding clause or any Uniform Guidance considerations 

• Renewal terms

• Coverage of costs of running physical space

• Program staffing responsibilities

• Timeframes of operation (daily and annually)

• Consider academic calendar vs. the Head Start program calendar

• Space usage: classroom(s), restrooms, office, playground, storage, parking, drop off and pick up

• Number and ages of children served

• Access to campus and security 

• Key fobs

• Areas that are accessible: gym, student center, library, etc.

• Custodial services

• Groundskeeping services

• Playground upkeep: mulch, fencing, play structure, etc.

• Associated fees (if applicable; usually applicable only to contracts)

• Addressing eligibility and prioritization of families

• Awareness efforts on campus to promote Head Start program

• Potential collaboration on additional grant funding opportunities for program

• Insurance coverage requirements

• Internet and phone service