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The mechanism described in CADA Section 7 for extending the instrument beyond single-foundation capacity to higher-value capital deployments. The tripartite structure distributes asset risk across multiple deploying foundations under a coordinated agreement, retaining substantive off-balance-sheet treatment while expanding the feasible capital base.
A specialist imaging suite costs more than any single foundation can bear without distressing its charitable function. Three foundations enter a coordinated tripartite CADA — each bearing a proportional risk share — to deploy the asset. The recipient institution still sees no liability; the risk is simply distributed across three balance sheets that can each absorb their share.
CADA Section 7