Memorandum of Understanding (MOU)

A Memorandum of Understanding (MOU) is a written agreement that sets out how two or more organisations plan to work together.

An MOU is often used when organisations want to collaborate on a shared project, partnership or piece of work, but do not need a formal legal contract. It can outline shared goals, roles and responsibilities, timelines, decision-making, and how the partnership will be managed.

In the social enterprise sector, MOUs are commonly used when organisations are working together across community, government, philanthropy or business. They can help create clarity early on, especially when testing a new partnership, delivering a joint initiative, or working across different parts of the ecosystem.

An MOU is usually not legally binding, but it can still be an important tool for building trust, setting expectations and supporting more effective collaboration.