What defines a donation in financial terms?

A donation is defined in financial terms as a voluntary contribution made by an individual or organization without the expectation of receiving anything in return. This definition emphasizes the key characteristics of a donation: it is not mandatory and does not involve any conditions for repayment or return benefits, distinguishing it from other forms of financial transactions.

This voluntary nature is essential because it reflects the donor's altruism or intent to support a cause without seeking profit or compensation. Donations are typically associated with charitable organizations, non-profits, and causes where the primary goal is to support rather than to profit from the transaction. Other forms of financial transactions, such as loans or mandatory payments, involve obligations or expectations that are absent in the context of donations.