Creation of a Designated (Agency) Fund

Agreement to Establish the ____________________Fund Within the ABC Community Foundation

THIS AGREEMENT, dated this ______day of _________, _____, is made to establish the _________[insert name of fund] Agency Fund (the "Fund") within the ABC Community Foundation (the "Community Foundation") with net income to be distributed at least annually to ________________________________ [insert name of particular charitable agency to be supported-for example, "The ABC School District"] (the "Agency"). The Agency may also request that a portion or all of the income be reinvested in the Fund.

Gifts may be added to the Fund at any time by the Agency or by other donors. The governing board of the Community Foundation shall have final authority and discretion as to the investment and reinvestment of the assets of the Fund as part of the Community Foundation's investment portfolio.

The Community Foundation, upon receipt of contributions to the Fund, will establish a separate account for accounting control of funds received from the Agency or from other persons or organizations wishing to directly make gifts to the Community Foundation for the purpose of benefiting the Agency.

The Community Foundation shall provide all routine accounting, as well as reporting to the Michigan Attorney General and Internal Revenue Service regarding the Fund.

In the event of the dissolution of the Agency, the Community Foundation shall thereafter continue to hold the assets constituting the Fund and shall distribute the net income and/or principal therefrom to such organizations as, in the opinion of the governing board of the Community Foundation, most nearly meet the purposes of the Agency.

It is intended that the Fund shall be continued as long as the need for the Fund exists and assets are held in the Fund for its purposes. If the Fund is terminated or if, for any reason, the Community Foundation dissolves, ceases to exist or ceases to hold or administer the Fund or otherwise to function under this Agreement, then the net assets of the Fund shall be distributed to such organizations as the governing board of the Community Foundation may select with primary consideration given to the Agency or to an organization or for a purpose recommended by the Agency.

The Fund shall be the property of the Community Foundation held by it in its corporate capacity and shall not be deemed a trust fund held by it in a trustee capacity. It is intended that the Fund shall be a component fund of the Community Foundation and that nothing in this Agreement shall affect the status of the Community Foundation as an organization described in Sections 509(a)(1) and 170(b)(1)(A)(vi) of the Internal Revenue Code. This Agreement shall be interpreted in a manner consistent with the foregoing intention and so as to conform to any applicable requirements of the Internal Revenue Code and IRS Regulations.

(Optional: The parties agree that the Fund will share a fair portion of the total administrative costs of the Community Foundation. The administrative costs charged against the Fund will at all times be reasonable, will be in accordance with the current fee schedule applicable to funds of this type, and will not exceed usual and customary rates.)

It is understood and agreed that all assets held in the Fund shall be subject to the Articles of Incorporation and Bylaws of the Community Foundation, including the power contained therein for the governing board of the Community Foundation to modify, cy pres, any restrictions or conditions on the distribution of funds for any specified charitable purposes or to specified organizations if, in its sole judgment, such restrictions become, in effect, unnecessary, incapable of fulfillment or inconsistent with the charitable needs of the area served by the Community Foundation.

AGENCY                                COMMUNITY FOUNDATION

By___________________________         By______________________________

Its_____________________              Its________________________