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Foundation Services Contract

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FOUNDATION SERVICES CONTRACT

This Foundation Services Contract ("Agreement") is made and entered into as of by and between Foundation Name: with principal place of business at , and Service Provider Name: with principal place of business at (each a "Party" and collectively the "Parties").

RECITALS

WHEREAS, the Foundation seeks to retain the Service Provider to perform certain services in support of the Foundation's charitable programs and operations as further described below; and

WHEREAS, the Service Provider has represented that it possesses the experience, personnel, facilities and expertise necessary to perform such services in a professional manner; and

WHEREAS, the Parties desire to set forth the terms and conditions under which the Service Provider will provide such services to the Foundation.

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

1. SCOPE OF SERVICES

1.1 Services. The Service Provider shall perform the services described in Schedule A attached hereto and incorporated herein by reference (the "Services"). The Services shall be performed in a professional and workmanlike manner consistent with industry standards.

2. TERM

2.1 Term. This Agreement shall commence on and shall continue in effect until unless earlier terminated in accordance with Section 8.

3. COMPENSATION AND PAYMENT

3.1 Fees. In consideration for the Services, the Foundation shall pay the Service Provider the fees set forth below and in Schedule B. Fees shall be invoiced in accordance with Section 3.2.

3.2 Invoices; Payment Terms. The Service Provider shall submit invoices to the Foundation monthly (unless otherwise agreed). Unless otherwise stated on the invoice, the Foundation shall pay undisputed amounts within days of receipt. Disputed amounts shall be resolved in good faith in accordance with Section 12.

3.3 Expense Reimbursement. The Foundation shall reimburse reasonable pre-approved expenses incurred by the Service Provider in connection with performance of the Services upon submission of receipts and documentation.

4. CONFIDENTIALITY

4.1 Definition. "Confidential Information" means non-public information disclosed by a Party that is identified as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure.

4.2 Obligations. Each receiving Party shall (a) hold Confidential Information in confidence using at least the same degree of care used to protect its own confidential information but not less than reasonable care; (b) use Confidential Information solely for performance under this Agreement; and (c) not disclose Confidential Information except to employees, consultants and legal advisors with a need to know and who are bound by confidentiality obligations no less protective than those herein.

4.3 Exceptions. Confidential Information does not include information that: (a) is or becomes publicly known through no breach of this Agreement; (b) is known to the receiving Party at time of disclosure; (c) is independently developed without use of the disclosing Party's Confidential Information; or (d) is required to be disclosed by law, provided the disclosing Party is given prompt notice and opportunity to seek protective measures.

4.4 Duration. The obligations of confidentiality shall survive termination of this Agreement for a period of unless otherwise required by applicable law.

5. INTELLECTUAL PROPERTY

5.1 Work Product. All materials, deliverables and work product first created or developed by the Service Provider specifically for the Foundation under this Agreement (collectively "Work Product") shall be the exclusive property of the Foundation upon payment in full for the applicable Services. To the extent any such Work Product is not a work made for hire, the Service Provider hereby assigns and agrees to assign to the Foundation all right, title and interest in and to such Work Product.

5.2 Pre-Existing Materials. Notwithstanding the foregoing, the Service Provider retains ownership of its pre-existing materials, tools, methodologies and know-how. The Service Provider grants the Foundation a perpetual, nonexclusive, royalty-free license to use such pre-existing materials solely as incorporated in the Work Product delivered under this Agreement.

6. INSURANCE AND INDEMNIFICATION

6.1 Insurance. The Service Provider shall maintain commercial general liability insurance with limits not less than per occurrence and professional liability insurance with limits not less than . Upon request, the Service Provider shall provide certificates evidencing such coverage.

6.2 Indemnification. The Service Provider shall indemnify, defend and hold harmless the Foundation, its officers, directors and employees from and against any third-party claims, liabilities, damages, losses and expenses (including reasonable attorneys' fees) arising out of or resulting from (a) the Service Provider's breach of this Agreement, (b) the Service Provider's negligence or willful misconduct, or (c) any claim that the Work Product infringes the intellectual property rights of a third party, except to the extent caused by Foundation materials or Foundation's breach.

7. LIMITATION OF LIABILITY

Except for liability arising from gross negligence, willful misconduct, breach of confidentiality or indemnification obligations, neither Party shall be liable to the other for consequential, incidental, special, punitive or exemplary damages. The aggregate liability of each Party arising out of or relating to this Agreement shall not exceed the total fees paid by the Foundation to the Service Provider under this Agreement during the twelve (12) month period preceding the event giving rise to the claim.

8. TERMINATION

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

8.2 Termination for Cause. Either Party may terminate this Agreement immediately upon written notice if the other Party materially breaches this Agreement and fails to cure such breach within 15 days after receipt of written notice specifying the breach.

8.3 Effect of Termination. Upon termination, the Service Provider shall deliver all Work Product and invoice the Foundation for all Services performed through the effective date of termination. The Foundation shall pay undisputed amounts in accordance with Section 3.

9. RECORDS AND AUDIT

The Service Provider shall maintain complete and accurate records relating to the performance of the Services and the charges invoiced to the Foundation for a period of three (3) years following final payment. The Foundation or its authorized representative shall have the right, during normal business hours and upon reasonable notice, to inspect and copy such records.

10. COMPLIANCE WITH LAW

Each Party shall comply with all applicable federal, state and local laws, rules and regulations in performing its obligations under this Agreement, including without limitation those relating to employment, tax withholding, export controls and non-discrimination.

11. ASSIGNMENT AND SUBCONTRACTING

The Service Provider shall not assign or transfer this Agreement or subcontract any material portion of the Services without the prior written consent of the Foundation, which consent shall not be unreasonably withheld. Notwithstanding any permitted subcontracting, the Service Provider shall remain fully responsible for performance of the Services.

12. NOTICES

12.1 Method. All notices required or permitted under this Agreement shall be in writing and shall be delivered by hand, national overnight courier, certified mail (return receipt requested), or by electronic mail with confirmation of receipt to the addresses below.

13. AMENDMENT; WAIVER; COUNTERPARTS

This Agreement may be amended or modified only by a written instrument signed by authorized representatives of both Parties. No failure or delay in exercising any right shall be deemed a waiver. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

14. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

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

14.2 Entire Agreement. This Agreement, including all schedules and exhibits hereto, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals and communications, whether oral or written.

14.3 Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the remaining provisions shall remain in full force and effect and the invalid, illegal or unenforceable provision shall be replaced by a valid, legal and enforceable provision that most closely reflects the Parties' original intent.

MISCELLANEOUS PROVISIONS

15.1 Relationship of the Parties. The Service Provider is an independent contractor and nothing in this Agreement creates an employer-employee, agency or joint venture relationship.

15.2 Publicity. Neither Party shall issue any public announcement regarding the other Party or the Services without the other Party's prior written consent, except as required by law.

Foundation

Party Label:

By:

Date:

Service Provider

Party Label:

By:

Date:

Enter text✕

What the Foundation Services Contract Is and when it applies

A Foundation Services Contract is a legally binding agreement between a foundation (or charitable entity) and a service provider that defines services, deliverables, timelines, payment, and performance standards. Typical uses include program management, grant administration, facilities maintenance, consulting, and vendor work tied to foundation projects. The contract allocates risk, states intellectual property and confidentiality rules, and often includes warranties, indemnities, insurance requirements, and termination provisions. Electronic execution is generally acceptable under federal and state e-signature laws when the parties show intent and consent.

Why a formal contract matters for foundation services

A clear Foundation Services Contract reduces misaligned expectations, protects restricted funds, documents deliverables for audits, and supports compliance with grantor, donor, and regulatory requirements such as IRS rules and funder guidelines.

Why a formal contract matters for foundation services

Who commonly prepares or signs this contract

The Foundation Services Contract is used by a mix of nonprofit staff, external vendors, and professional advisors when engaging paid services on behalf of a foundation.

  • Nonprofit program staff coordinating vendor work, managing budgets, and documenting deliverables in support of grants or donor restrictions.
  • Independent contractors and vendors delivering consulting, maintenance, or professional services who need clear scopes, payment terms, and deliverable schedules.
  • Legal, finance, or compliance teams reviewing clauses for indemnity, insurance, restricted-fund usage, and reporting obligations.

Each signer should confirm authority to bind their organization and ensure any donor or regulatory conditions are reflected before execution.

Core elements to include in a professional Foundation Services Contract

A well-drafted agreement balances clarity and enforceability by defining work, timing, money, and compliance obligations in unambiguous terms.

Scope of Work

Describe tasks, deliverables, milestones, and acceptance criteria in sufficient detail so performance is measurable and auditable.

Term & Schedule

Specify effective date, start and end dates, renewal terms, and milestone deadlines to avoid ambiguity about performance periods.

Payment Terms

State fees, invoicing cadence, acceptable expenses, payment period, and any retainers or holdbacks tied to deliverables.

Compliance & Restrictions

Note donor restrictions, grant conditions, restricted-fund usage, reporting obligations, and any required audit cooperation.

Confidentiality

Define confidential information, permitted disclosures, and required safeguards where sensitive donor, beneficiary, or program data is involved.

Termination & Remedies

Include termination for convenience and cause, notice periods, post-termination obligations, and dispute resolution procedures.

Step-by-step: complete and execute the contract

Follow these steps to assemble, review, and legally execute a Foundation Services Contract with minimal risk and clear documentation.

  • 01
    Prepare draft: Insert SOW, payment, and compliance text.
  • 02
    Internal review: Have legal and finance confirm terms.
  • 03
    Negotiate terms: Track changes and agree on final version.
  • 04
    Execute: Obtain authorized signatures and date the document.

Typical digital workflow settings for online completion

Configure your e-signature workflow to match signing order, authentication needs, and record retention before sending the document.

Field Configuration
Signing Order Sequential or parallel routing
Authentication Email link, SMS code, or KBA
Reminder Settings Auto-reminders every X days
Retention Export PDF + audit trail storage

Where to send and how to distribute signed copies

After execution, deliver the signed contract to all stakeholders and store copies in systems used for records and audits.

  • To the Parties: Send fully executed PDF to each contracting party.
  • Finance Records: Provide invoice and payment schedule to accounting.
  • Grant/File Folder: Attach to grant file or program folder for auditors.
  • Secure Archive: Store in your secure document management system.

Typical timelines and notice windows to include

Contracts should list concrete dates and notice periods so performance, billing, and termination events are unambiguous.

Effective & Start Dates:

Define when obligations begin and when services commence.

Milestone Deadlines:

Set deliverable due dates and acceptance windows.

Payment Terms:

Specify net terms (e.g., Net 30) and invoice due dates.

Termination Notice:

State notice period for termination for convenience.

Amendment Timing:

Require written amendments signed by authorized parties.

Common mistakes to avoid when preparing the contract

  • Using vague deliverable language that leaves acceptance criteria undefined and invites disputes.
  • Failing to confirm signatory authority, which can render the agreement unenforceable or delay performance.
  • Overlooking donor or grant restrictions that limit use of funds or require specific reporting and audit access.
  • Neglecting to include insurance, indemnity, and data-protection clauses where sensitive information is processed.

Short list of penalties and legal risks

Unenforceable Terms: Ambiguous obligations may not be legally enforceable
Misuse of Funds: Violating donor restrictions risks IRS or funder sanctions
Data Breach Liability: Exposure if PHI or confidential data is mishandled
Late Payments: Interest, collection costs, and reputational harm
Contractor Claims: Breach claims for unpaid or defective work
Regulatory Fines: Noncompliance with sector rules may trigger penalties

Security, privacy, and compliance checkpoints

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Audit Trail: Record timestamps, IP, and signer actions
HIPAA Ready: BAA required for protected health information
ESIGN / UETA: Meets ESIGN and state UETA requirements
21 CFR Part 11: Support for FDA-regulated records where required
Certifications: SOC 2 Type II and ISO 27001 controls

Digital signing and integration considerations

When completing the contract electronically, plan authentication, audit trail, storage, and integrations to existing systems.

  • Authentication: Email, SMS, or stronger methods
  • Integrations: CRM, ERP, cloud storage
  • File Formats: PDF, DOCX, and audit PDF

Ensure your chosen platform supports required compliance (e.g., HIPAA BAA) and produces a tamper-evident audit trail for recordkeeping and future review.

Typical eSignature vendor comparison for executing contracts

Comparison of common vendor attributes relevant when selecting an eSignature solution to execute Foundation Services Contracts; signNow is listed first according to vendor data.

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 Yes, 7-day Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes Yes
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Practical examples from real organizations

Two examples show how organizations used an electronic signing workflow to complete foundation-related service agreements.

Optica Ventures LLC — COO

Optica needed a straightforward way to get customer approvals without extra training.

  • The interface lowered signer friction and improved turnaround.
  • "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers," — Brian Fitzgibbons, COO, describing improved signature completion and faster contract cycles.

Martin Properties — Founder

A small foundation managing property maintenance moved to fully online agreements.

  • Mobile signing enabled onsite execution.
  • "I can process and execute all of these documents online with 100% compliance and built-in security," — Tim Martin, Founder, describing consistent compliance across mobile and offline conditions.

Frequently asked questions about using and validating this contract

Answers to common legal and technical questions about preparing, signing, and storing a Foundation Services Contract.


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