Checklist Of Items To Consider When Disbursing From Endowment Funds

Charities enter regularly into gift agreements with donors who wish to establish or make contributions to endowment funds. These are very exciting times for the charity and the donor as endowment funds enable the donor to maximize their gift and the charity receives a recurring source of income. However, when charities ultimately disburse the money contributed to endowment funds, a number of issues can arise if the money is not properly disbursed, that is, if the money is not spent in accordance with the donor's wishes and the documentation put in place at the time of the gift. The checklist below is meant to be a resource for charities to consult as part of their due diligence before disbursing money from their endowment funds.