A well-structured memorandum of understanding (MOU) documents key legal and operational aspects of an institution-foundation partnership. It serves important legal functions by specifying roles and responsibilities, appropriate use of state resources, and policies and practices supporting good stewardship, transparency, and alignment. An inclusive MOU process can also help to establish and memorialize a shared understanding of the relationship and the role of the foundation as a strategic partner to the institution. This book provides new guidance for two-year and four-year institutions on the process of developing or revising an MOU, including how to educate and engage boards in the process, what issues to consider, and how to identify key stakeholders so that the process fosters collaboration and trust between an institution and its related foundation. Furthermore, it includes two illustrative examples, one tailored for less complex and the other more complex institution-foundation partnerships, to meet the needs of a wide range of organizations. It also includes explanatory annotations intended to guide higher education leaders through the legal structure of an MOU agreement.