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  • 1.  Closing an Endowment

    Posted 10-17-2025 01:10 PM

    Hi all,

    We have a donor who's interested in closing her named endowment and transferring the funds to a second, preexisting endowment at our university. I'm looking for best practices around documenting this kind of closure and transfer. We've considered drafting a letter outlining the plan for the donor to sign, but I'm wondering if a more formal amendment to the original gift agreement would be better. I'd appreciate any guidance or examples you can share!

    Thanks,

    Erica



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    Erica Isakower
    Simmons University
    erica.isakower@simmons.edu
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  • 2.  RE: Closing an Endowment

    Posted 10-17-2025 01:29 PM
    As the endowment agreements are legal documents, you will want to seek advice from Counsel. However, it is customary to add an adendum to the endowment agreement stating that these funds will be moved as an addition to the corpus.

    You will need a signed document from the donor of the endowment being closed, expressly permitting the closure. You will also need consent from any other donors who contributed to that fund.

    You don't mention who established the endowment that will receive these assets. They may need to approve the transfer if the endowment agreement doesn't mention the ability to obtain additional funds or additions to the corpus.

    Depending on your endowment policy, I have encountered institutions where a combination of endowment assets required Board approval.

    John 

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: Closing an Endowment

    Posted 10-21-2025 10:33 AM

    Thank you, John!



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    Erica Isakower
    Simmons University
    erica.isakower@simmons.edu
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    Original Message


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