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Tab 27: Documentation of Procedures Ensuring that Funds Are Used to Meet Donors’ Intent

The community foundation submits the process used for determining and documenting donor intent and the process for considering and approving grants consistent with donor intent.

Material Changes: For the purposes of reconfirmation, a material change is any change that affects any of the
key elements.

For more information, review Core materials, FAQs and a glossary of important terms

Related Standards

IV. Stewardship and Accountability
IV.D A community foundation honors the charitable intentions of its donors, consistent with community needs and applicable laws and regulations.

View all National Standards

Key Elements

Process for considering and approving grants consistent with donor’s intent

Process for determining and documenting donor’s intent (crosscheck with sample fund agreements; donor’s intent may be documented in the agreement)

Core Materials
FAQs
Glossary

Required Documents

Sample fund agreements
List of funds
Grant processing policies

Does the requirement to ensure funds are used to meet donors' intent apply to all funds or just donor advised funds?

The requisite disclosure of your community foundation's process for "meeting donor intent" applies to all fund types, not just donor advised funds. Reviewers will look for evidence that your foundation engages in some form of quality assurance to ensure donor intent is heeded. This goes beyond merely recording donors' intent at the time gifts are made, your organization may conduct follow-up in a variety of ways. For example, on a yearly basis, staff might compare all (or a sample) of fund distributions with the use of funds described in the original transfer instrument or fund agreement. Or, as part of its annual audit, your community foundation might ask the auditor to do this crosschecking.

Donor
An individual or organization who establishes a fund.

Grants
The award of funds for charitable purposes.

Reconfirming?

Review all key elements and consider if your organization has made changes to your policies, powers or practices.

Pay special attention to key elements and core materials marked with and a . These represent minimum requirements for reconfirmation as well as Pension Protection Act requirements. Items marked with a are particularly critical for those who submitted record books prior to January 2007.