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Foundation Services Agreement

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FOUNDATION SERVICES AGREEMENT

This Foundation Services Agreement (Agreement) is entered into as of (Effective Date), by and between Foundation Name: , a nonprofit corporation organized under the laws of with principal place of business at ("Foundation"), and Service Recipient Name: with principal place of business at ("Recipient"). Foundation and Recipient are each a Party and together the Parties.

RECITALS

WHEREAS, Foundation is experienced in providing philanthropic program design, management, and related support services and has personnel, expertise, and resources to perform certain services described herein;

WHEREAS, Recipient desires to engage Foundation to perform services as set forth in this Agreement and Foundation is willing to provide such services under the terms and conditions set forth below;

WHEREAS, the Parties intend to set forth herein the scope, schedule, compensation (if any), and terms governing the performance of such services.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. SERVICES

1.1 Scope. Foundation shall provide the services and deliverables described in the Services Description below in a professional and workmanlike manner in accordance with industry standards. Foundation shall perform the Services in accordance with the milestones and schedule specified in the Services Description.

1.2 Additional Services. Any services not expressly set forth in the Services Description shall be considered Additional Services and shall be agreed in writing and subject to additional fees where applicable.

2. TERM

2.1 Term. The term of this Agreement shall commence on and shall continue until unless earlier terminated in accordance with Section 11.

3. COMPENSATION AND EXPENSES

3.1 Compensation. As full compensation for the Services, Recipient shall pay Foundation the amounts specified below and in accordance with the payment terms set forth in Section 4. If no amounts are entered, the Parties acknowledge that Services may be provided pro bono as indicated in the Services Description.

4. INVOICING AND PAYMENT

4.1 Invoices. Foundation shall submit invoices to Recipient in accordance with the schedule set forth in the Services Description or, if not specified, monthly in arrears. Invoices shall include reasonable detail of services rendered and expenses claimed.

5. CONFIDENTIALITY

5.1 Definition. "Confidential Information" means non-public information disclosed by one Party to the other Party, whether disclosed orally or in writing, that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure.

5.2 Obligations. The receiving Party shall: (a) maintain the confidentiality of Confidential Information using at least the same degree of care it uses to protect its own confidential information but in no event less than reasonable care; (b) use Confidential Information solely to perform its obligations under this Agreement; and (c) not disclose Confidential Information to any third party except as permitted by this Agreement or with the disclosing Party's prior written consent.

6. INTELLECTUAL PROPERTY

6.1 Pre-existing Materials. Each Party retains all right, title and interest in and to its pre-existing intellectual property and materials. Nothing in this Agreement transfers ownership of pre-existing intellectual property.

6.2 Deliverables. Subject to payment of all amounts due (if any), Foundation hereby assigns to Recipient all right, title and interest in the Deliverables created exclusively for Recipient under this Agreement, to the extent such assignment is permitted by law. Foundation retains a non-exclusive, royalty-free license to use aggregated, anonymized, or non-identifying information for research and internal reporting.

7. DATA PROTECTION

7.1 Compliance. Each Party shall comply with all applicable data protection and privacy laws in the performance of this Agreement. Where Foundation processes personal data on behalf of Recipient, the Parties shall implement appropriate technical and organizational measures to protect such personal data from unauthorized access, disclosure, alteration or destruction.

8. WARRANTIES; DISCLAIMER

8.1 Mutual Warranties. Each Party represents and warrants that it has the full corporate power and authority to enter into this Agreement and to perform its obligations hereunder.

8.2 Foundation Warranty. Foundation warrants that the Services will be performed in a professional manner consistent with industry standards. FOUNDATION MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT.

9. INDEMNIFICATION

9.1 By Recipient. Recipient shall indemnify, defend and hold harmless Foundation and its directors, officers, employees and agents from and against any and all losses, liabilities, damages, costs and expenses (including reasonable attorneys' fees) arising out of or related to Recipient's breach of this Agreement, negligence, willful misconduct, or use of the Deliverables, except to the extent caused by Foundation's gross negligence or willful misconduct.

9.2 By Foundation. Foundation shall indemnify, defend and hold harmless Recipient from any third-party claim to the extent such claim arises from Foundation's breach of its representations and warranties or Foundation's gross negligence or willful misconduct in providing the Services.

10. LIMITATION OF LIABILITY

10.1 Exclusion. EXCEPT FOR LIABILITY ARISING FROM A PARTY'S GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR BREACH OF INTELLECTUAL PROPERTY OR CONFIDENTIALITY OBLIGATIONS, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE OR INDIRECT DAMAGES.

11. TERMINATION

11.1 Termination for Convenience. Either Party may terminate this Agreement for any reason upon written notice to the other Party with at least days' prior notice.

11.2 Termination for Cause. Either Party may terminate this Agreement immediately upon written notice if the other Party materially breaches any provision of this Agreement and fails to cure such breach within days after receipt of written notice specifying the breach.

11.3 Effect of Termination. Upon termination, Recipient shall pay Foundation for all Services performed and expenses incurred through the effective date of termination. Sections concerning Confidentiality, Intellectual Property, Indemnification, Limitation of Liability, Governing Law and any other provisions that by their nature survive termination shall survive.

12. NOTICES

12.1 All notices required or permitted under this Agreement shall be in writing and shall be delivered to the addresses set forth below or to such other address as a Party may designate by notice:

13. AMENDMENTS; WAIVER

13.1 Amendment. This Agreement may be amended only by a written instrument signed by authorized representatives of both Parties.

13.2 Waiver. No waiver of any breach of this Agreement shall constitute a waiver of any other breach. No waiver shall be effective unless in writing and signed by the Party granting the waiver.

14. GOVERNING LAW; SEVERABILITY; ENTIRE AGREEMENT

14.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflicts of law principles.

14.2 Severability. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect and shall be construed so as to best effectuate the original intent of the Parties.

14.3 Entire Agreement. This Agreement, together with any attachments and the Services Description, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written.

15. MISCELLANEOUS

15.1 Assignment. Neither Party may assign this Agreement without the prior written consent of the other Party, except that Foundation may assign to an affiliate or in connection with a merger or sale of substantially all of its assets, provided that the assignee agrees in writing to be bound by the terms of this Agreement.

15.2 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures delivered by electronic means shall be binding.

Foundation Printed Name:

By:

Date:

Recipient Printed Name:

By:

Date:

Enter text✕

What the Foundation Services Agreement Is and When It Applies

A Foundation Services Agreement is a written contract that sets out the scope, responsibilities, payment terms, deliverables, reporting, confidentiality, and compliance obligations when a private foundation, public charity, or grant-making entity engages a third party to perform services. Typical uses include program administration, fiscal sponsorship, grant management, evaluation, consulting, and IT or back-office support. The agreement allocates risk (indemnity, insurance), establishes performance metrics and milestones, describes invoicing and payment schedules, and includes termination and IP clauses. When electronic execution is used, ESIGN and UETA usually validate signatures for interstate and intrastate transactions.

Why a Formal Agreement Matters for Foundation Work

A clear Foundation Services Agreement protects both the foundation and its service providers by defining expectations, reducing dispute risk, and documenting compliance with grant rules and donor restrictions.

Why a Formal Agreement Matters for Foundation Work

Who Typically Prepares and Signs This Agreement

This agreement is used across nonprofit leadership, program managers, and service vendors; roles differ by organization size and governance requirements.

  • Foundation program officer or grants manager — prepares scope, reporting requirements, and performance metrics for contract appendices and oversight.
  • Vendor or consultant account lead — confirms deliverables, staffing, pricing, and invoicing cadence; ensures insurance and compliance representations.
  • Legal counsel or contract administrator — reviews indemnity, IP assignment, confidentiality, and termination clauses before execution.

Final signatures should come from authorized signatories named in the foundation’s delegation of authority and a vendor representative with corporate signing power.

Step-by-Step: How to Complete the Agreement

Follow a logical sequence to reduce review cycles and ensure consistent records.

  • 01
    Prepare draft: Assemble scope, budgets, and exhibits for review.
  • 02
    Internal review: Have program, finance, and legal review contract terms.
  • 03
    Vendor negotiation: Resolve payment, IP, and indemnity items in tracked edits.
  • 04
    Execution and retention: Collect signatures, finalize exhibits, and store executed copies.

How to Configure an Online Signing Workflow

Set up fields and routing to match the agreement’s signing order and authentication needs.

Field Configuration
Signature fields Place signer-specific signature and date fields; lock critical clauses.
Conditional fields Use conditional visibility for optional exhibits or payment milestones.
Routing order Define signing order (foundation approver first or vendor first) to match internal controls.
Authentication Require email + SMS code or higher for sensitive agreements.

Digital Signing and Submission Considerations

Electronic execution is commonly used for these agreements; choose a platform that meets legal and security requirements.

  • Document formats: PDF, DOCX supported for upload and final signed export.
  • Authentication options: Email link, SMS code, KBA, or advanced signer authentication as needed.
  • Integrations: Connectors for cloud storage and finance systems reduce manual filing.

Ensure any eSignature vendor you select supports ESIGN/UETA compliance, provides a detailed audit trail, and can produce a tamper-evident signed PDF for retention.

Where to Send and How Execution Flows

Routing should reflect internal approval paths and the vendor’s signing authority to create an auditable chain.

  • Upload document: Upload the final approved draft to the e-sign platform.
  • Place fields: Add signature, date, and initial fields for each party.
  • Send to signers: Specify signer emails and required authentication.
  • Archive executed: Export signed PDF and store in records management system.

Timelines and Typical Processing Deadlines

Track negotiated milestones and internal review deadlines to meet program schedules and grant reporting dates.

Negotiation window:

Allow 5–15 business days for negotiation depending on complexity.

Internal approvals:

Budget and legal review typically take 3–10 business days.

Execution time:

Electronic signatures often complete within 24–72 hours once sent.

Invoice processing:

Allow 30–45 days for vendor payment cycles unless otherwise negotiated.

Reporting deadlines:

Align deliverable dates with grantor reporting and fiscal year timelines.

Key Contract Milestones and Approval Stages

A sequential milestone view helps legal, finance, and program teams coordinate reviews and sign-offs.

01

Draft Issued

Program issues initial scope and budget for legal review.

02

Internal Signoffs

Finance and executive authorization obtained before vendor negotiation.

03

Vendor Execution

Vendor signs and returns executed agreement with attachments.

04

Post-Execution Setup

Onboarding, invoice setup, and retention in records system.

Common Mistakes to Avoid

  • Leaving scope vague or open-ended which leads to disputes over deliverables and payment triggers.
  • Failing to confirm the vendor’s authority to sign, resulting in unenforceable commitments or delays.
  • Overlooking insurance and indemnity language that shifts unexpected liability to the foundation.
  • Not aligning payment schedules with deliverables and grantor reporting periods, causing cash flow issues.

Penalties and Risks of Poorly Prepared Agreements

Contract disputes: Litigation risk and legal fees
Grant noncompliance: Loss of funding or repayment obligations
Payment delays: Vendor termination or service interruption
Data breaches: Regulatory fines and notification costs
Invalid signatures: Enforceability challenges under statutes
Record retention failures: Audit penalties or subpoena complications

Security and Compliance Essentials to Note

Encryption in transit: TLS 1.2 / 1.3
Encryption at rest: AES-256
Regulatory standards: SOC 2 Type II
Healthcare compliance: HIPAA with BAA
Electronic law: ESIGN and UETA compliance
21 CFR readiness: 21 CFR Part 11 support

Real-World Examples of Use

Below are illustrative examples showing how foundations and vendors use these agreements in practice.

Optica Ventures (Program Management)

The foundation needed ongoing grant reporting and monitoring systems

  • Vendor provided monthly reports and a dashboard
  • As a result, the foundation documented deliverables and reduced reporting disputes by standardizing templates and schedules across programs.

Fertility Centers of Illinois (HIPAA)

A healthcare foundation engaged an evaluator handling PHI

  • BAA and audit rights were added to the agreement
  • The contract preserved compliance, required secure transmission, and clarified incident response responsibilities for both parties.

Essential Clauses to Include in the Agreement

Ensure the agreement covers the provisions below to minimize ambiguity and support enforceability.

Scope

Clear deliverables, milestones, acceptance criteria, and performance metrics to tie payment to outcomes.

Payment Terms

Detailed fee schedules, invoicing requirements, late payment remedies, and expense reimbursement rules.

Confidentiality

Non-disclosure terms, permitted disclosures, and duration of confidentiality obligations.

Intellectual Property

Ownership of deliverables, license grants, and assignment language where appropriate.

Insurance and Indemnity

Insurance minimums, additional insureds, indemnity scope and limitations, and claim notice procedures.

Termination

Termination for convenience and cause, cure periods, transition assistance, and post-termination obligations.

eSignature Vendor Pricing and Feature Snapshot

Basic pricing and common feature availability for major eSignature providers. Use this snapshot to compare starting costs and core capabilities when selecting a platform for executing Foundation Services Agreements.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes Yes
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions and Quick Answers

Answers to common questions about executing, enforcing, and storing Foundation Services Agreements.


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