Suggested terminology for use in bequest language:

I give and bequeath _____[describe gift]_____ to ABC Community Foundation ("the Foundation") to create a charitable endowment fund for the public charitable, educational, and scientific uses and purposes of the Foundation subject to the provisions of its Articles of Incorporation and By-Laws as they exist on this date or as they may hereafter be amended (the "Governing Instruments").

The fund created shall be known as the __[insert name of fund)]_ Fund ("Fund"). I desire that an annual payout percentage be made in accordance with the distribution policies for endowment funds of the Board of Directors of ABC Community Foundation ("Board"). The purpose(s) of this Fund shall be the following (choose a, b, c, or d):

(a) Unrestricted (general purpose): "This bequest shall be used for such of the Foundation's charitable purposes as the Foundation's Board may from time to time determine."

(b) Field of Interest: "It is my desire that distributions from this Fund be used for the support of _ [name particular charitable purpose] ." Note that because funds are permanent and serve many generations, their field of charitable interests should be defined in broad terms that will ensure the longevity of the gift, such as children's programs, arts education, environmental conservation, aiding the homeless, etc.

(c) Restricted or Designated: "It is my desire that distributions from this Fund be used for the support of ___[insert name of particular charitable agency or agencies to be supported] for the purpose of __ [describe particular purpose, if any] ."

(d) Advised: "Distributions may be recommended and made from the Fund, subject to the approval of the ABC Community Foundation, Inc. ("the Foundation") Board of Directors ("Board") for charitable purposes consistent with those specified in the Governing Instruments as the Board may determine, after taking into consideration any suggestions from time to time made to the Foundation by __[insert the name of a child or children, grandchildren or other advisor who might carry on the legacy of the donor] . It is understood that no successor advisors shall be named by the designated advisors listed above."

Treasury Department regulations require that the Foundation's Board be vested with the power to modify a donor's restrictions when such restrictions become 'unnecessary, incapable of fulfillment, or inconsistent' with the charitable needs of the community. This ensures that the donor's fund will continue to support worthwhile charitable programs and not a separate trust. The Fund shall be held and administered subject to the provisions of the Governing Instruments, including those provisions, which may permit the Foundation's Board to amend, modify, or vary any of the purposes, directions, restrictions, or conditions set forth herein.

 

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