Sample Endowment

[FAMILY OR INDIVIDUAL NAME] MEMORIAL SCHOLARSHIP
[FOR SCHOOL or MINISTRY NAME]
ENDOWMENT FUND AGREEMENT

 THIS AGREEMENT, made at Altoona, Pennsylvania, this XX day of XXXX 2017, by and between THE FOUNDATION FOR THE ROMAN CATHOLIC DIOCESE OF ALTOONA-JOHNSTOWN ("the Foundation") and [DONOR NAME], Address, City, State, Zip,
WITNESSETH:

 1. CREATION OF FUND.
  There is hereby created the [FAMILY OR INDIVIDUAL NAME] Memorial Scholarship for [SCHOOL NAME] Endowment Fund ("the Fund") to receive, manage and administer contributions and funds as a scholarship endowment.  The Fund shall be utilized to provide a permanent endowment with distributions to be used to provide assistance to students entering or continuing to attend [SCHOOL NAME].  Scholarships may be a total amount equal to the academic cost per pupil as authorized by the school financial assistance process.  The scholarships distributed from the Fund shall be given in honor of [FAMILY OR INDIVIDUAL NAME].  The fund was established thanks to a generous initial gift from [DONOR or DONORS].

[Note:  Memorial Comments about the Family or Individual may be added here.]

The Foundation shall hold said property, together with any additions thereto as hereinafter provided, and shall invest and reinvest the same and shall distribute the net Income and Principal as hereinafter set forth.

 

 2. INVESTMENT OF FUNDS.  RECORDS.
   The assets of the Fund may be invested in common with other funds of the Foundation, but separate records shall be kept of the assets, income and disbursements of the Fund.

 
 3. WITHDRAWALS FROM THE FUND.
  a. Income and Ordinary Annual Distributions. The Foundation is authorized in its sole discretion to distribute or accumulate in whole or in part, the income as derived from the assets and/or Principal of the Fund for the purposes for which this endowment was created.  The income available for distribution annually will be determined by the Foundation Board of Trustees in accordance with any applicable laws and Foundation policies.  The Foundation may consult with the principal or financial aid administrator of [SCHOOL NAME] from time to time concerning the disposition or accumulation of income or funds available for annual distribution.

  b. Principal.  The Principal of the Fund shall be distributed only to meet the minimum annual distribution of the fund's market value as required by applicable state and/or federal law.  Otherwise, no part of the Principal of the Fund shall be distributed but, rather, shall be invested and reinvested at the discretion of the Foundation in order to generate income.

 

 4. CHANGE IN CIRCUMSTANCES.
  At such time as the charitable purposes as set forth in this Agreement have, in the judgment of the Foundation become unnecessary, undesirable, impractical, impossible, or no longer adapted to the purposes as hereinabove set forth, the remaining principal balance and any undistributed balance of net earned income of the Fund shall be transferred within the Foundation.  First preference shall be for the Foundation to transfer funds to an existing endowment to provide support for Catholic school education in the area of the region served by [SCHOOL NAME} at the date of this agreement.

 

 5. FOUNDATION COMPENSATION.
  The Foundation shall be entitled to receive as compensation for its services a reasonable fee, which shall be in accord with the prevailing rate of compensation charged by the Foundation for like services.

 

 6. LIMITED POWER OF AMENDMENT.
  The agreement is irrevocable.  However, the Foundation shall have the power, acting alone, to amend the agreement in a manner required for the sole purpose of ensuring that the agreement qualifies and continues to qualify as a charitable instrument under applicable laws, and the original intentions of the creation of the Fund continue to be met.

 

  IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

 Attest:  The Foundation for the Roman Catholic  Diocese of Altoona-Johnstown

 

___________________________    _____________________________________
Current Foundation Secretary              Current President
  (SEAL)

 

            _____________________________________
                [NAME OF BENEFACTOR(S)]