Community foundation sues to stop affiliate split

The Blue Grass Community Foundation in Lexington, KY entered into an agreement with an individual donor in 2002 to create a permanent endowment affiliate known as the Magoffin County Community Foundation for funds to support charities in the county. The agreement permitted the affiliate to establish a board and to invest its funds with Blue Grass funds for the standard management fees imposed by Blue Grass.

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SAY THAT AGAIN?

July 14, 2026

The draft of an endowed fund agreement for a community foundation called for grants to be made annually to a designated charity and provided that if the charity ever went out of business, the future grants should be made to another charity in the same location.

The agreement set forth the charity’s name and listed its location as a P.O. Box.

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Community foundation sues to stop affiliate split

Community foundation sues to stop affiliate split