alabama planned giving council's november presentation

DRAFTING CHARITABLE GIFT AGREEMENTSTHAT STAND THE TEST OF TIME

Alabama Planned Giving CouncilNovember 17, 2016

Alan F. Rothschild, Jr.

The Perfect Gift

• Warren E. Buffett 1061• Omaha, Nebraska• Date November 1, 2016• PAY TO THE • ORDER OF Community Foundation of Greater Birmingham $5,000,000.00• Five Million and 00/100 DOLLARS• Happy Bank & Trust

• MEMO: General Uses and Purposes /s/ Warren E. Buffett______

Parts of a Charitable Gift Agreement Parties Purposes and Restrictions Changes in circumstances “Legal Stuff” For Pledges:

• Binding agreement• Payment terms• Alternative(s) if payment not made

Who is the Donee?

Who is the Donor?

Why does it matter?

Defining the Charitable Purpose

Donor Intent Goals Aspirations

Restrictions and Conditions

Changes in Circumstances

Privacy and Recognition Open Records Naming Opportunities

• Obsolescence• Un-Naming

“Legal Stuff”

Policies and Procedures

Spending Policy

Management Fees

Naming Rights

“Legal Stuff”

Governing Law

This Agreement shall be governed by the laws of the State of Alabama.

“Legal Stuff”

Merger Clause

This Agreement contains the entire understanding of the Parties with respect to the subject matter of this

Agreement. This Agreement supersedes and cancels all other agreements and understandings, both written and oral, between the Parties related to the subject matter of

this Agreement.

“Legal Stuff”

Dispute Resolution

Modifying Gift Restrictions

• Agreement Provisions

• Uniform Prudent Management of Institutional Funds Act (“UPMIFA”)

Enforcement of Charitable Gifts

Standing to Sue

Practical Issues