Karen and Paul had a private foundation that they used to support Christian churches and ministries.  They frequently discussed what would happen to the foundation upon their deaths.  Rather than simply grant out all the assets immediately, Karen and Paul wished that their two children could continue the family tradition of giving for years to come. 

However, they felt that their children would need training and guidance to be ready to carry on this responsibility.  There was also the possibility that the kids would want to give to charities their parents would have never supported when they were living. 

Therefore, Karen and Paul wanted to leave specific instructions to be carried out after their deaths, but still leave room for their children's giving passions as the kids grew in their walks with God.  Finally, Karen and Paul only wanted the foundation to give to organizations that continued to adhere to the same Christian beliefs. 

How NMCF met Karen and Paul's giving goals
After a meeting with NMCF and their professional advisor, Karen and Paul decided to dissolve their private foundation and transfer its funds into a Giving Fund (donor advised fund).  They used this to do all of their lifetime giving.  They also set up a Legacy Fund for Karen and Paul's children, a close family friend, and their primary contact at NMCF.  This group of people would act as the “Legacy Advisory Committee” for the Legacy Fund and provide the security and permanence that they were seeking.

Upon their deaths, the balance of their Giving Fund was transferred into their Legacy Fund, which followed these parameter:

• It would run in perpetuity with grants made from the income earned on the balance of the Fund, rather than from the principal.  An appropriate investment strategy was also selected. 
   
• The Legacy Advisory Committee would require ministries to sign a statement of faith that Karen and Paul created.  The ministries would also have to be willing to provide reports and information as required by the Committee to ensure proper stewardship and accountability of grants they received.
   
• The Committee would ensure that each year, 25% of all grants must be made to a pre-determined list of ministries that Karen and Paul agreed upon.  Fifty percent of all grants must be given to organizations that serve the poor and needy – such as needy students (via scholarships), individuals from third-world countries, orphans, etc.
   
• The timing of all grants would be left up to the Committee, who could also recommend the remaining annual grant amount at their discretion (to other ministries that signed the statement of faith).

In summary, Karen and Paul were able to use their NMCF Giving Fund to give while they were alive.  They could use this as a tool to teach their children important values about generosity.  And because of their NMCF Legacy Fund, they could rest assured that after their lifetime, their children – along with NMCF and their close friend – would carry out their giving desires in perpetuity in the same manner they would have done so during life.