This Donor-Advised Fund (“Fund”) Agreement is entered into by and between Global Impact, a Section 501(c)(3) organization located at offices at 1199 North Fairfax Street, Suite 300, Alexandria, VA 22314 and the Fund Advisor(s) (“Advisor”).
1. Establishment of Fund
The Advisor wishes to establish a Fund with Global Impact. The Advisor acknowledges and confirms that Global Impact owns the Fund and has the ultimate authority, discretion and exclusive legal control over all property in the Fund and the income derived from it. The Advisor acknowledges that the Fund will be established and maintained at a financial institution of Global Impact’s choosing.
The Primary Advisor shall designate other Advisors set forth in the application. The Primary Advisor may name Additional Advisors, who may also contribute to and make grant recommendations. The Successor Advisors may also be named on the application so that in the event of the Advisor’s death, resignation, incapacity or inability to serve for any reason, can act on the Advisor’s behalf.
3. Purpose of Fund
The Fund is a perpetual, charitable fund created for the purpose of carrying out the public charitable purposes of Global Impact, as described in Global Impact’s governing documents. The Advisor understands and agrees that all grants from the Fund are subject to the provisions of Global Impact’s governing documents, as may be amended from time to time without notice to the Advisor. No Growfund account shall be used as a tool or vehicle to conduct research without the express written permission of Global Impact.
4. Minimum Fund Balance
The asset value of the Fund at the beginning of any calendar year generally shall not be less than $100.00 (the “Minimum Balance”). If the Fund is less than the Minimum Balance for any continuous twelve (12) month period after any January 1, Global Impact shall notify the Advisor and request that additional contributions be made to increase the Fund balance to an amount equal to or in excess of the Minimum Balance. If the Fund balance is not increased within ninety (90) days after such notice, the Fund shall cease to be a Fund and Global Impact reserves the right to distribute all or part of the Fund balance for charitable purposes in accordance with Paragraph 10 of this Agreement.
The Advisor shall pay a Fund administration and maintenance fee (the “Monthly Fee”) of 3 percent (3%) annualized of the Fund balance up to $20,000 and 1 percent (1%) annualized of the Fund balance $20,000 and above. The Monthly Fee will be charged against and subtracted from the Fund balance monthly following the Fund’s establishment date until termination of the Fund. The amount of the Monthly Fees may be revised by Global Impact from time to time to reflect changes in actual costs with notice to the Advisor. The scale of Monthly Fees will be published on Growfund’s website and any changes to the Monthly Fee amounts. The invested funds on each account may be subject to 5 bps annualized fee on all balances.
6. Contributions to the Fund
Contributions may be in the form of cash (checks, credit cards, ACH, wires, e-check (US only)), securities, or planned gifts (life insurance, IRA benefits, remainder trust, annuity, etc.). The minimum contribution amount shall be $5. Any contribution, once accepted by the Global Impact, represents an irrevocable contribution to the Fund and is not refundable. Any contribution made via credit card or electronic check is subject to a 3 percent (3%) transaction fee to cover the processing fees for the transaction.
7. Distributions from the Fund
Global Impact will generally follow the Advisor’s recommendations regarding grants from the Fund; provided, however, the Advisor acknowledges Global Impact shall have full authority, discretion and control to make distribution from the Fund that are contrary to the Advisor’s recommendations. The earnings allocable to the Fund (net of the Fees set forth in Section 5) and principal may be committed, granted or expended only for purposes are consistent with Global Impact’s exempt status and purposes.
8. Administration of the Fund
A. Global Impact shall invest the Fund balance in accordance with its normal investment guidelines or procedures. The Fund balance shall be adjusted (the “Adjustments”) (i) for the results of the investment performance; (ii) for grants made from the Fund; and (iii) by the Fees.
B. To comply with applicable tax rules, no distributions shall be made from the Fund for the following purposes, including but not limited to:
• To discharge or satisfy a charitable pledge or obligation of any person; to an individual; to a non-functionally integrated Type III supporting organization; to a political campaign/candidates; to support lobbying activities; to pay for dues, membership fees, tuition, goods from a charitable auction, admission to charity events or other goods and services; for the personal economic benefit of the Advisor, other Advisor(s) or a related party of either; for political contributions, or legislative activities; to private foundations (except for private operating foundations); or to terrorists or their support networks or used for activities that support terrorism or terrorist organization, and Global Impact shall fully comply with the U.S. Department of the Treasury Anti-Terrorist Financing Guidelines.
C. The Board of Directors of Global Impact shall exercise the powers described in Treasury Regulation, Section 1.170A-9(f)(11)(V.B), (C), and (D) commonly referred to as variance power. Should the purposes for which the Fund was created ever become obsolete, inconsistent, or incapable of fulfillment, as determined by Global Impact’s Board of Directors, in its sole discretion, the Board shall have the power and authority to modify any restriction or condition on the distribution of funds.
Global Impact will send a Fund statement to the Advisor periodically, showing beginning value and the Adjustments specified in Section 8.A. The Advisor may request interim reports.
10. Disposition of Fund
The Fund shall cease to be a donor-advised fund due to death or other incapacity of the Advisor or if no Additional Advisor, Successor Advisor or Beneficiary Charity has been named, if the Advisor fails to reply to Global Impact’s inquiries regarding Fund activity for a period of four (4) or more years, or the Fund has failed to maintain the Minimum Balance for a continuous twelve (12) month period after notice to the Advisor in accordance with the Agreement and the Advisor’s failure to increase the Fund Balance in accordance with Paragraph 4 of this Agreement. When the Fund ceases to be a donor-advised fund, Global Impact shall, at its sole election, either (i) maintain it as a permanent, endowed fund and periodically distribute the income to charitable organizations which it shall, in its discretion select, or (ii) terminate the Fund and distribute the Fund assets for charitable purposes.
11. Name Restriction
The name of Global Impact or Growfund shall not be used in any pamphlet, newsletter, brochure, or in any other way by the Advisor for purposes of soliciting donations unless approved in writing in advance by Global Impact. The name Global Impact or Growfund may not be used in the established name of the fund.
This Agreement shall be construed and governed by the provisions of Virginia law. In the event that any one or more of the provisions contained in this Agreement are held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement. In the event of any dispute concerning this Agreement or the Fund, Global Impact may charge its legal fees and costs incurred in connection with the dispute against the Fund balance. This Agreement shall bind the parties and their respective successors and assigns.
The Advisor acknowledges that it has read the terms and conditions and agrees to all of the terms, Fees and conditions described herein. The Advisor certifies, to the best of its knowledge, all information presented in connection with this Agreement is accurate, and the Advisor shall notify Global Impact promptly of any changes.
If the Advisor is making a contribution close to year-end, I understand that, for tax purposes, the effective date of the Advisor’s contribution could be deemed to occur in the next calendar year.
The Advisor understands that if there is more than one Advisor on the Account, each Advisor has authority, acting individually and without notice to any other Advisor, to deal with Global Impact as fully and completely as if the Advisor were the sole Advisor and may make any changes to the Account (except to remove other Advisors).
IN CASE OF ERRORS OR DISCREPANCIES: If the Advisor finds any errors or omissions relating to the Advisor’s Global Impact donor-advised fund account, the Advisor must call Global Impact immediately at 844-852-3617 or [email protected] The Advisor will notify Global Impact no later than 10 days after the relevant communications are sent or made available to the Advisor. The Advisor understands that Global Impact will not be liable for any losses that occur because of the Advisor’s failure to promptly notify Global Impact of an error.