Sample: Field-of-Interest Fund Agreement

This AGREEMENT is made to establish a permanent fund to be known as the (Name of Fund) (the "Fund") within the Capital Region Community Foundation (the "Foundation").

1. Purpose of Fund.
   (State broad purpose of the fund, e.g., arts, education, senior programs etc.)
2. Creation of the Fund.
   1. --The Fund is created by the Foundation and will be so identified by the Foundation in all relevant literature, reports, promotional material, and other public documents, including the Foundation's website and any Annual Report prepared by the Foundation. Confidentiality as to the name of the Fund and its subsequent grant distributions has not been requested by the Donors.
   2. --The Fund is created for the purposes set forth in Section 1 above, and donations may be made to the Fund at any time by any donor, upon acceptance by the Foundation. [Donors to the Fund may designate their gifts for permanent endowment or for the nonpermanent portion of the Fund.]
   3. --The Fund will be the property of the Foundation and will not be deemed a separate trust fund held by it in a trustee capacity. The Fund will operate under, and all assets held in the Fund will be subject to, the governing instruments (including Articles of Incorporation and Bylaws of the Foundation) and control of the Foundation through its Board of Trustees.
   4. --It is intended that the Fund be a component fund of the Foundation and the terms of this Agreement are to be construed to that effect.

3. Powers, Duties and Responsibility of the Foundation.
   1. --The Foundation, upon receipt of contributions to the Fund, shall establish a separate account for accounting control of the contributions and shall separately account for all endowment principal in, and income from, the Fund.
   2. --The Foundation shall have full authority and discretion as to the investment and reinvestment of the assets for the Fund.
   3. --The Foundation shall furnish all routine accounting, as well as reporting to the Michigan Attorney General and Internal Revenue Service regarding the Fund, and shall keep all records of the Fund that are required to be kept under the laws governing community foundations.
   4. --The Foundation retains the power to modify any restriction or consideration on the distribution of funds from the Fund for any specified charitable purposes or to any specified organizations if, in the sole judgment of the Board of Trustees of the Foundation (without the necessity of the approval of any participating trustee, agent or custodian), such restriction or condition becomes, in effect, unnecessary, undesirable, impractical, incapable of fulfillment, or inconsistent with the investment policies of the Foundation or with the charitable needs of the community or area served by the Foundation.

4. Distributions from Fund
   1. --Distributions shall be made consistent with the charitable purpose for which the Fund has been established and consistent with the exempt purposes of the Foundation as specified in its Articles of Incorporation and Bylaws.
   2. --Distributions from the Fund shall be made only by the Foundation's Board of Trustees in accordance with the policies established by the Board of Trustees. 
   3. --Distributions from the Fund will ordinarily be made according to the Spending Guidelines established by the Board of Trustees of the Foundation. In general, the principal of permanent endowments will not be invaded except when applying the Spending Guidelines, or in extraordinary circumstances as deemed appropriate by the Board of Trustees of the Foundation.

5. Fees and Expenses
   The Foundation shall charge the Fund a fee in accordance with the then prevailing fee schedule adopted by the Foundation's Board of Trustees, which will be deducted annually in the first quarter of the year. This fee is in addition to any investment fees charged to the Foundation that are pro-rated to the Fund, and to any expenses relating specifically to the Fund (e.g., brochure printing and mailing costs, supplies, legal services, and so forth), which will be paid by the Fund.
6. Dissolution of Foundation
   In the event the Foundation ceases to be a qualified charitable organization (as described in Internal Revenue Code Sections 509(a)(1), (2), (3), or (4) and which is other than a private foundation under Section 509(a)), or proposes to dissolve, the Foundation will distribute the assets of the Fund to one or more organizations eligible to receive funds under the Articles and Bylaws of the Foundation to be administered by such organization(s) in a manner that will, as much as is practical, achieve the original purposes of the Fund.

IN WITNESS WHEREOF, each party hereto has executed this agreement on the date(s) set forth below.