Community Foundation of Southern New Mexico
THIS AGREEMENT is made this ___day of ___________, 20___, by and between ________________ currently of ________________________ (the "Donor") and The Community Foundation of Southern New Mexico, a non-profit corporation organized under the laws of the State of New Mexico and exempt from Federal Income Taxation pursuant to Internal Revenue Code Section 501(c)(3), or its successors, (the "Community Foundation").
1. The Gift. Donor pledges to complete the $5,000 minimum endowment requirement within five years commencing from the date of this agreement. Pledges may be payable in single or multiple installments. The pledge may not exceed five years in duration. Upon failure of fund to reach $5,000 minimum requirement, the assets will be re-designated as determined by the Board of Directors.
2. Property of the Fund. The Fund shall include the property received with the execution of this Agreement, such additional property as may from time to time be transferred to the Foundation from any source for inclusion in the Fund and accepted by the Foundation, and all undistributed income from the foregoing property. The Fund shall be the exclusive property of the Foundation, held by it in its corporate capacity, and shall not be deemed a trust fund held by it in a trustee capacity. The Foundation shall have the ultimate authority and control over all property in the Fund, and the income derived from it, in accordance with the Articles of Incorporation and Bylaws of the Foundation (as they may be amended from time to time), and the terms of this Agreement, applied in a manner not inconsistent with the Articles and Bylaws.
3. Purpose of the Gift. The purpose of this gift is to establish a fund known as The _______________________________________Endowment which is hereinafter referred to as "the Fund". The income of the Fund will be used by the Community Foundation for the purposes of:
4. Acceptance of Gift. The Community Foundation accepts the gift of the Donor and the trust imposed hereby and agrees to administer the gift upon the terms and conditions hereinafter set out.
5. Administration of the Endowed Gift. The Fund will be a permanently endowed fund of the Community Foundation. The Fund will be invested and reinvested in a common investment trust fund for endowments in accordance with the investment policies of the Community Foundation. Each year, the Community Foundation on a recommendation from the Investment Committee will set aside a certain percentage not to exceed the greater of 6% or the net income from the prior year that fund and use for the purposes set out in this agreement. The balance of the principal and any accumulated income will remain permanently invested and will not be invaded for any reason.
6. Additions to the Fund. The Donor and any others may make additional gifts to the Fund, whether outright, by Will, or through any other arrangements acceptable to the Community Foundation. All additional gifts to the Fund will be subject to the same terms and conditions set out in this Agreement.
7. Variance Power. The Board shall have the power to modify any restriction or condition on the distribution of funds for any specified charitable purposes or to specified organizations if in the sole judgment of the Board (without the approval of any trustee, custodian, or agent), such restriction or condition becomes, in effect, impracticable, incapable of fulfillment or inconsistent with the charitable needs of the community or area served.