Not-for-Profit Entities F39-16b

What are split interest agreements?

Split interest agreements are arrangements whereby both a donor and a not-for-profit organization receive benefits, often at different times in a multiyear arrangement.

A typical split interest agreement has two components: a lead interest and a remainder interest. A lead interest provides disbursements throughout the term of the agreement. A final disbursement at the termination of the agreement is a remainder interest.