Legal Aspects of F und Management. Section 3. Fund Agreements – Things To Think About.
Fund Agreements –
Things To Think About
Do not specify the current fee structure in the fund agreement. Attaching the current fee schedule to the fund agreement as an exhibit or attachment is acceptable so long as it clearly states the date that the fee schedule is effective and that the fee schedule may be amended from time to time by the CF.
not other 501(c) Organizations
Address common misunderstandings about these funds in an explanation document, including:
Consider a policy that designated funds can be created for the benefit of only one qualified public charitable organization.
FOI funds are really discretionary funds that give the CF’s board of directors grant making flexibility within the constraints of the description of the charitable field; can be non-permanent or endowed fund.
Does the donor want to include geographic limitations in terms of the service area of the charities whose charitable purpose falls within the described field of interest?