If your faith community doesn’t have an existing endowment, and you want to leave them a gift but release them from the responsibility of forming and endowment committee and managing an endowment, you might consider making a gift to Faith Foundation for your faith community’s benefit. Here’s a sample of the type of agreement we might make. If you’re considering this type of gift, please contact staff@faith.foundation or call us at (800) 488-4179.
sample memorandum of agreement
This Agreement, by and between the family of _______________________________ hereinafter called the “Donors” and Faith Foundation Northwest, a Washington 501(c)3 Corporation hereinafter called the “Foundation,”
WITNESSETH:
1. The purpose of this agreement is to establish the terms, conditions and obligations of the Foundation with regard to a gift(s) placed with the Foundation by the Donors.
2. The Foundation agrees to accept the gift deposited by the Donors to the Foundation and to use said gift to establish an Endowment Fund entitled: ________________________________________.
3. The Foundation agrees to invest the gift in its Diversified Moderate Investment Portfolio in accordance with its investment policies, giving consideration to safety of principal and a reasonable return on the investment.
4. The Foundation agrees to make an annual distribution of four percent (4%) of the endowment’s beginning year balance – regardless of actual earnings - to ________ [organization name] _________________, a [AK, ID, OR, or WA] nonprofit located at _______ [street address] ___________. _______________ [describe any restrictions about how the distribution will be used, or if none, note that it is to be used in the organization’s sole discretion] ____________.
5. The Foundation agrees to accept additional gifts which, from time to time, may be transferred to it by the Donors.
6. The Foundation agrees to maintain a separate account with interest and dividends and any other earnings as may be received and declared by the Foundation from time to time. Yearly statements of the Endowment’s earnings and distributions shall be mailed to the Donors within the first 4 weeks following each year-end.
7. The Foundation represents that it is exempt from income taxes and is certified as a charitable organization pursuant to IRC 501(c)3.
8. The Foundation has the right to charge for administrative services rendered to the account in keeping with the schedule of charges and fees adopted by the Foundation for services it renders to the accounts it maintains. This fee is three fourths of one percent (.75%) of the account balance.
DATED _______________________
_________________________________
[Donor name(s)]
ACCEPTED by the Faith Foundation Northwest on _______ [date] _________
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Robert W. Ives, President
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Thomas B. Wilson, Executive Director