Can we back out of a multiyear commitment we made in a prior year because our foundation’s assets have declined?
The answer in many cases is “no.” That is, unless your grantee is willing to release your foundation from its obligation.
Generally, an unconditional, multiyear grant is considered a pledge to the grantee organization. In many states, a pledge is a legally binding obligation. Therefore, your grantee could seek to take you to court should you stop paying the grant.