Question regarding endowment agreements. Should the all endowment agreements be fully binding?
We're having a discussion where the GO wants to remove the binding language of the endowment because the donor wants to pay for the endowment using DAF money.
Do any of you allow establishing endowments using DAF money? Can the donor make the agreement and then tell us, in the document, that the funds are coming from a DAF? Are there any red flags here?
Documentation with a recent DAF gift indicated it was to fund the DAF holder's new endowment. I would think that the endowment agreement would be binding on the donor. It's really between the donor and the DAF to ensure the money was directed and document properly so it can establish the endowment. Thanks
"The undersigned acknowledge that for this endowment to be fully recognized as an endowment held by [Organization Name], I/we are personally responsible for satisfying the payment terms noted herein. We may not make commitments on behalf of others. Should, however, related contributions be received from third parties, [Organization Name] may voluntarily reduce our personal obligation by a like amount."
Thanks, John. As I thought.