Unique situation for donors
We have a set of donors who are making their post-lifetime plans for their donor advised fund. The fund is currently non-endowed and will have ~$40M added to the fund after the donors’ lifetimes. It has a very narrow area of interest for the grant funding (retrofitting homes for seniors and people with disabilities). The donors would like the pastor and elders of their church to be listed as the successor advisors for the fund. We’ve recommended that most of the fund become endowed as a protection of their intention for those funds. The donors have shared that they would consider endowing $1M of that amount and leaving the remaining amount available to grant (their reasoning being that in case a retirement/senior living facility needs to be built). Has anyone experienced situations like this where the majority of a planned gift to a specific fund will NOT be endowed? Have you run into any issues with it? Any thoughts or recommendations if you’ve had a similar situation?