Template - Sample Endowment Fund Agreement

Sample
Endowment Fund Agreement

“XYZ” Foundation





I. ESTABLISHMENT

XYZ Foundation (“Foundation”) hereby agrees to establish the______________________________ENDOWMENT FUND (“Fund”) per the terms of this agreement to become effective when contributions for this Fund total at least $10,000.

II. PURPOSE

The purpose of this Fund will be:

(some possible options):

“To support the general purposes and programs of the Foundation”.

“To establish a bursary for….” (indicate restrictions, if any)

“To…” (describe particular purpose other than one of above options)


III. DONORS

State the name(s) of the primary donor(s), his/her/their affiliation with the Foundation, why the Fund is being established and some brief biographical information about the donor(s).


IV. FUNDING

This Endowment will be funded with the following (include all applicable items):

1. A cash gift of $____________.
2. A gift of securities (or real property) valued at $_____________
3. A gift of the remainder interest in a charitable remainder trust executed on (date).
4. The gift portion of a charitable gift annuity executed on (date).
5. A life insurance policy assigned to the Foundation on (date).
6. Any other gifts or bequests that (name) or other persons may designate for this purpose.
7. Additional gifts that the donor(s) intend(s) to complete by (date) which, when added to the initial gift, total at least $______________.


V. INVESTMENT

The donor(s) intend(s) that the property contributed for this Fund, or other property substituted for it, will be held and invested by the Foundation as a permanent endowment unless the purpose is amended in accordance with Article VII, but in no case will the contributed property, or property substituted for it, be held for a period of less than ten years, in accordance with Section 149.1(l)(e)(i) of the Income Tax Act.

The income earned on the endowment will be used for the purposes authorized by this agreement. The investment, management, and expenditure of all funds will be in accordance with the Foundation’s policies and procedures.


VI. ADMINISTRATION

The principal of this endowment will be retained, administered and managed by the Foundation. The distributed income will be used for the purposes described in Article II.


VII. ADMENDMENT

This agreement may be amended by the mutual consent of the Foundation and ______________________ during (his/her/their) lifetime(s).

If changed circumstances should at some future time make it impractical to continue using the income from this endowment for the designated purpose, and the donor(s) either is (are) not living or not able to consent to an amendment, then the Foundation may designate the purpose of the endowment income, provided that the Fund shall continue to bear the name(s) of _________________ and the amended terms will adhere as closely as possible to the donor(s) original intent for this Fund.


Donor(s) Foundation


_________________________ __________________________


_________________________ __________________________
(Name & Title of Foundation Officer)

_____________________ _____________________
Date Date

Last modified: Monday, 4 February 2013, 10:13 AM