Successorship Policy

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Content

  1. Background

  2. Overview

  3. Role and Succession of Successors

  4. Role of Successor Advisors

1. Background

A Benefaction donor advised fund (“Fund”) can remain in place beyond the life of the original Donors, and Successors can be identified to pass the granting recommendation role for the Fund to other family members or individuals.

For the purposes of this policy, the term “Donor Advisors” is used to identify the original Donors who established the Fund and have responsibility for the Fund’s grant recommendations. The term “Successor Advisors” identifies the Successors who have assumed responsibility for the Fund’s grant recommendations, upon the death or incapacity of the Donor Advisors. Furthermore, plural references to Donors, Successors, Donor Advisors, Successor Advisors, etc. can be inferred as singular as applicable to the situation.

2. Overview

Successors can be named in the original Donor Agreement, or they can be named (or updated) later in writing by the Donor Advisors. A Successor must provide written notice and sufficient proof to Benefaction of the Donor Advisor’s death or incapacity to succeed them. If a Fund has more than one Donor Advisor, the Successors will only assume that role once all Donor Advisors have passed.

NOTE: In the event of a conflict between a Donor Advisor’s Last Will and Testament (“Will”) and the Donor Agreement, a Grant Recommendation Form, or other form of instruction provided to Benefaction, the Will shall prevail, provided it grants the Successors the power of appointment (i.e. the authority to dispose of certain property under the Will).

3. Role and Succession of Successors

There are multiple options in the Donor Agreement for the role/succession of Successors.

  1. 1.Named Successors will equally share responsibility for the Fund’s grant recommendations.

  2. Treat Successor 2 as contingent Successor in the event that Successor 1 is no longer able to provide grant advice/recommendations.

  3. 3.Assets of the original Fund may be divided into equal shares among the other Funds on which the Successors have has an advisory role, subject to Fund minimums.

  4. The Directors of Benefaction Foundation will make grants from the Fund.

  5. Successors may provide grant recommendations for the Fund during the Donor Advisors’ lifetime.

If no Successor is named and a Donor Advisor has passed, the Directors of Benefaction will assume the Donor Advisor role and make grants from the Fund, in accordance with this policy. The alternative to naming a Successor is that the Donor Advisors provide Benefaction with a grant recommendation in the event of their passing (or a form of “letter of wishes”), in which case those recommendations will be treated as if they were made during the Donor Advisors’ lifetime.

4. Role of Successor Advisors

Successors will assume the role of Successor Advisor for the Fund’s grant recommendations after the death or incapacity of the Donor Advisors.

To protect the legacy of the Fund’s original Donor, Fund naming privileges do not extend to Successors (i.e. Successor Advisors cannot change the name of the Fund). Except in the scenario where the Fund balance is split between Successors (option 3: Assets of the original Fund will be divided into equal shares among the other Funds on which the Successor has an advisory role, subject to Fund minimums.), then the Successors may name their personal Funds as they wish. Successors may also request the funds be moved to the Investment Advisor of their choosing, subject to Board approval.