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Gift Agreement - No End Date

  • 1.  Gift Agreement - No End Date

    Posted 11 days ago

    Hey y'all!

     

    I am wondering if anyone has encountered or has recommended language for a gift agreement where the donor would like to provide current use/annual scholarships in perpetuity (most likely until the donor passes away).  The donor doesn't want an end date or renew the agreement every 5 years (our current policy).  However, I believe we need to have an out clause or language which we can back out if our leadership no longer can manage the funds or the purpose of those funds no longer fits our needs.

     

    Thank you,

     

    Michele

     

     

    Responsibility ~ Self-Assurance ~ Arranger ~ Relator ~ Input

     



  • 2.  RE: Gift Agreement - No End Date

    Posted 11 days ago
    All gift agreements need a savings clause!

    But as for the open-ended commitment, this is no different than what you do for your sustaining credit card donors when no end is indicated.

    However, for something like this you will want to record a pledge.  The new CASE Standards address pledges of greater than five years.  They suggest booking pledges five years at a time.

    On the pledge piece, I think your CFO should be asked for their opinion.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



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