Sample instruments for accepting gifts

Transcription

1 Sample instruments for accepting gifts This template provides sample language for the instruments that formally transfer gifts to your community foundation or fund, or that establish named funds within your endowment. Five different instruments are provided, one for each of the five most common types of funds that a donor might be interested in creating or supporting at your foundation. These include: n Sample Instrument of Transfer Designated Agency Fund n Sample Instrument of Transfer Scholarship Fund n Sample Instrument of Transfer Donor Advised Fund n Sample Instrument of Transfer Field of Interest or Unrestricted Fund n Sample Agreement Creating an Affiliate Fund

2 2 Sample instrument of transfer: Designated/agency fund In order to establish the Meredith Smith Green Charitable Fund, (hereinafter the Fund ), a permanent endowment, the Founding Contributor hereby transfers, conveys and pays over to the Beautiful Valley Community Foundation (hereinafter the Foundation ), as a charitable Contribution, the following: Residual proceeds from the Meredith Smith Green estate, via bequest. The Foundation is a nonprofit Oregon corporation exempt from taxation under Internal Revenue Code Section 501(c)(3), a public charity described in Section 170(b)(1)(A)(vi) of the Code, and therefore an appropriate institution within which to establish this fund. The Foundation is authorized to accept additional contributions to the Fund in terms substantially similar to those set forth herein. Subject to the right of the Foundation to reject any particular donation, all such gifts, bequests and devises to this Fund shall be irrevocable once accepted by the Foundation. Purpose The Founding Contributor desires that the annual net income from the Fund be distributed to Grove City College (two-thirds) and Camp Arrowhead of the Episcopal Diocese of Willamette, OR (one-third), according to the provisions listed in attachment A. Fund Advisor The Board of Directors of the Beautiful Valley Community Foundation shall serve as the Fund Advisor (Advisor) for this Fund, and shall see that all of the founding donor s directives are fulfilled. Distributions Advisor desires that the annual net income from the Fund be available for distribution during each 12-month period following the Foundation s fiscal year-end (6/30), in accordance with both their recommendations and the charitable purposes set forth in the Bylaws of the Community Foundation. Net income shall be computed annually based upon the current spending policy of the Foundation (currently 5% of the average past three year-end Fund balances.) Annual distribution shall be made by the Grants Committee of the Foundation, or such other committee(s) as may be designated by the Board of Directors of the Foundation, after receiving approval from the Advisor. Both the principal and interest of the Fund must be committed, granted or expended for purposes described in Internal Revenue Code Section 170(c)(2)(b) to organizations described in Code Sections 509(a)(1), (2) or (3). No distribution shall be made if such will, in the judgment of the Board of Directors, endanger the Foundation s Code section 501(c)(3) status.

3 Any conditions or restrictions to gifts received and accepted by the Foundation for the Fund will be honored subject to the Foundation s authority to vary the terms of any gift if continued adherence to any condition or restriction is, in the judgment of the Foundation s Board of Directors, unnecessary, incapable of fulfillment or inconsistent with the charitable needs of the communities served by the Foundation. Fees & Investments The Founding Contributors hereby acknowledge receipt of the Administrative Fee Schedule attached hereto as Exhibit A, accept the terms of said schedule with the understanding that the fee schedule is subject to modification at the sole discretion of the Foundation s Board of Directors, and agree to be bound by the most current schedule of fees published by the Foundation. The Foundation shall have all powers necessary, or in its sole discretion desirable, to carry out the purposes of the Fund including, but not limited to, the power to retain, invest and reinvest the endowed assets of the Fund. Procedures & Variance Power Founding Contributor is familiar with and accepts the terms of the Procedures for the Establishment and Operation of Funds, and corresponding Sections of the Bylaws of the Foundation and also understands that the Foundation, through its duly authorized committees, reserves the right to make the final decision regarding distributions from the Fund. In addition, the Founding Contributor agrees that the Fund shall at all times be subject to such terms and conditions including, but not by way of limitation, provisions for: (a) Presumption of Donor s intent; (b) Variance from Donor s direction; (c) Amendments In witness whereof, The Founding Contributor has executed this Transfer and the Foundation has caused this Transfer to be approved by its Board of Directors and to be executed by a duly authorized officer, all as of the day and year written below. Submitted by Founding Contributor: Meredith Smith Green By Elizabeth Peavey, President Beautiful Valley Community Foundation Accepted this day of,

4 4 Attachment A Meredith Smith Green Charitable Fund Charitable distributions from this fund are to be made under the following conditions and criteria: 1. Grants to Grove City College Annual grants are to support no more than two students from Grove City College per year, so long as such grants represent no more than 50% of the recipients annual costs of tuition. Grants may be made to the same student(s) for up to four consecutive years, at the determination of the Scholarship Office of the College. Under no circumstance shall the cash value of these grants be reduced by applying such value to other scholarships or financial aid that the selected students may be receiving. If 100% of the cash amount will not benefit the recipients, no scholarships are to be awarded that year. Criteria for selection by the Scholarship Office shall include pursuit of a degree in music or a related field, and financial need. Should a multi-year recipient change his or her degree from music or a related field, this scholarship shall be discontinued with the following semester. No more than one semester may be skipped, one time, in order for a scholarship award to be considered consecutive. 2. Camp Arrowhead Scholarships are to be awarded by Camp officials of the Episcopal Diocese of Willamette, Oregon based primarily upon financial need. Should Camp Arrowhead be sold, or otherwise lose its nonprofit status, this portion of the annual designated distribution (one third) shall be re-directed to Grove City College.

5 5 Sample instrument of transfer: Scholarship fund In order to establish the Gloria Van Hunt Memorial Scholarship Fund, (hereinafter the Fund ), a permanent endowment, the Founding Contributors hereby transfer, convey and pay over to the Beautiful Valley Community Foundation (hereinafter the Foundation ), as a charitable Contribution, the following: Gifts of cash, stock and other negotiable securities. The Foundation is a nonprofit Oregon corporation exempt from taxation under Internal Revenue Code Section 501(c)(3), a public charity described in Section 170(b)(1)(A)(vi) of the Code, and therefore an appropriate institution within which to establish thus fund. The Foundation is authorized to accept additional contributions to the Fund in terms substantially similar to those set forth herein. Subject to the right of the Foundation to reject any particular donation, all such gifts, bequests and devises to this Fund shall be irrevocable once accepted by the Foundation. Purpose In memory of Gloria Van Hunt and her numerous contributions to the advancement of women s athletics in the Grove City School District, the Founding Contributors desire that the annual net income from the Fund be distributed as scholarships to outstanding women scholar-athletes from Grove City High School planning to attend a four year college, according to the general scholarship procedures of the Foundation. Fund Advisor A committee composed of two coaches of Grove City women s athletic programs and three high-school faculty members shall serve as the Fund Advisors (Advisors) for this Fund, and shall see that all of the founding donor s directives are fulfilled. The Superintendent of the Grove City School District shall appoint Advisors for terms of up to three years, subject to approval by the Board of Directors of the Foundation. Distributions The Founding Contributors desire the annual net income from the Fund be available for distribution during each 12-month period following the Foundation s fiscal year-end (6/30), in accordance with both the Advisors recommendations and the charitable purposes set forth in the Bylaws of the Community Foundation. Net income shall be computed annually based upon the current spending policy of the Foundation (currently 5% of the average past three year-end Fund balances.) Annual distribution shall be made by the Grants Committee of the Foundation, or such other committee(s) as may be designated by the Board of Directors of the Foundation, after receiving approval from the Advisor.

6 6 Distributions from the Fund shall be made in compliance with all applicable laws and Internal Revenue Service regulations governing such funds. No distribution shall be made if such will, in the judgment of the Board of Directors, endanger the Foundation s Code section 501(c)(3) status. If any gifts to the Foundation for this Fund are received and accepted subject to a Donor s conditions or restrictions, such will be honored subject to the Foundation s authority to vary the terms of any gift if continued adherence to any condition or restriction is, in the judgment of the Foundation s Board of Directors, unnecessary, incapable of fulfillment, or inconsistent with the charitable needs of the communities served by the Foundation. Fees & Investments Founding Contributor hereby acknowledges receipt of the Administrative Fee Schedule attached hereto as Exhibit A and accepts the terms of said schedule, and further understands that the fee schedule is subject to modification at the sole discretion of the Foundation s Board of Directors, and agrees to be bound by the most current schedule of fees published by the Foundation. The Foundation shall have all powers necessary, or in its sole discretion desirable, to carry out the purposes of the Fund including, but not limited to, the power to retain, invest and reinvest the endowed assets of the Fund. Procedures & Variance Power Founding Contributor is familiar with and accepts the terms of the Procedures for the Establishment and Operation of Funds, and corresponding Sections of the Bylaws of the Foundation and also understands that the Foundation, through its duly authorized committees, reserves the right to make the final decision regarding distributions from the Fund. In addition, the Founding Contributor agrees that the Fund shall at all times be subject to such terms and conditions including, but not by way of limitation, provisions for: (a) Presumption of Donor s intent; (b) Variance from Donor s direction; (c) Amendments In witness whereof, the founding contributors have executed this transfer and the Foundation has caused this Transfer to be approved by its Board of Directors and to be executed by a duly authorized officer, all as of the day and year written below. Submitted by Founding Contributors: Robert Van Hunt By Elizabeth Peavey, President Beautiful Valley Community Foundation Emily Van Hunt Osborne Accepted this day of,

7 7 Sample instrument of transfer: Donor advised fund IN ORDER TO ESTABLISH the Foundation (hereinafter the Fund ), the Founding Contributor(s) (Donor Advisors) hereby transfer, convey and pay over to the Beautiful Valley Community Foundation (hereinafter the Foundation ), as a charitable Contribution, the following:. The Foundation is a nonprofit Oregon corporation exempt from taxation under Internal Revenue Code Section 501(c)(3), a public charity described in Section 170(b)(1)(A)(vi) of the Code, and therefore an appropriate institution within which to establish this fund. The Foundation is authorized to accept additional contributions to the Fund in terms substantially similar to those set forth herein. Subject to the right of the Foundation to reject any particular donation, all such gifts, bequests and devises to this Fund shall be irrevocable once accepted by the Foundation. Purpose This Fund is being established for the following purpose(s):. Donor Advisor(S) The designated Donor Advisor(s) for this fund are:. Distributions Donor Advisor(s) desire that the (income and principal) (annual net income) from the Fund be available for distribution during each 12-month period following the Foundation s fiscal yearend (6/30), in accordance with both their recommendations and the charitable purposes set forth in the Bylaws of the Community Foundation. (If annual net income is chosen, insert the following language: Net income shall be computed annually based upon the current spending policy of the Foundation currently 5% of the average past three year-end Fund balances.) Distribution shall be made by the Grants Committee of the Foundation, or such other committee(s) as may be designated by the Board of Directors of the Foundation, after receiving the recommendation(s) in writing from the fund advisor(s). Both the principal and interest of the Fund must be committed, granted or expended for purposes described in Internal Revenue Code Section 170(c)(2)(b) to organizations described

8 8 in Code Sections 509(a)(1), (2) or (3). No distribution shall be made if such will, in the judgment of the Board of Directors, endanger the Foundation s Code section 501(c)(3) status. If any gifts to the Foundation for this Fund are received and accepted subject to a Donor s conditions or restrictions, such will be honored subject to the Foundation s authority to vary the terms of any gift if continued adherence to any condition or restriction is, in the judgment of the Foundation s Board of Directors, unnecessary, incapable of fulfillment or inconsistent with the charitable needs of the communities served by the Foundation. Successor Advisors When (our) (my) privilege to advise the Fund terminates upon (our) (my) death(s), resignation or incapacity to serve, the successor advisors to the Fund shall be (our) (my) (children) (child) (list as many as needed). When two persons are eligible to be successor advisors, they shall act by unanimous consent; when more than two persons are eligible, then a grant recommendation by a majority of such persons shall constitute an effective recommendation for consideration by the Foundation. Successor advisors shall have the ability to recommend grant distributions from the Fund by advising the Foundation in writing. Successor advisors may not change the purpose, type, terms or conditions of this Fund that were established by the Founding Advisors. When no successor advisors are available, the Board of the Community Foundation will serve in this capacity. At such time, Founding Advisors direct that the Fund retain its name and that all remaining assets be: a) made into an unrestricted fund, for general and charitable purposes as set forth in the Bylaws, or b) made into a field of interest fund to address the following charitable interests:. Fees & Investments Donor Advisors hereby acknowledge receipt of the Administrative Fee Schedule attached hereto as Exhibit A and accept the terms of said schedule. Donor Advisors further understand that the fee schedule is subject to modification at the sole discretion of the Foundation s Board of Directors, and agree to be bound by the most current schedule of fees published by the Foundation. The Foundation shall have all powers necessary, or in its sole discretion desirable, to carry out the purposes of the Fund including, but not limited to, the power to retain, invest and reinvest the endowed assets of the Fund. Procedures & Variance Power Donor Advisors are familiar with and accept the terms of the Procedures for the Establishment and Operation of Funds, and corresponding Sections of the Bylaws of the Foundation. Donor advisors also understand that the Foundation, through its duly authorized committees, reserves

9 9 the right to make the final decision regarding distributions from the Fund. In addition, donor advisors agree that the Fund shall at all times be subject to such terms and conditions including, but not by way of limitation, provisions for: (a) Presumption of Donor s intent; (b) Variance from Donor s direction; (c) Amendments In witness whereof, the Donor Advisors have executed this Transfer and the Foundation has caused this Transfer to be approved by its Board of Directors and to be executed by a duly authorized officer, all as of the day and year written below. Submitted by Founding Contributor(s): By Elizabeth Peavey, President Beautiful Valley Community Foundation Accepted this day of,

10 10 Sample instrument of transfer: Field-of-interest or unrestricted fund In order to establish the Fund, (hereinafter the Fund ), the Founding Contributor(s) hereby transfer, convey and pay over to the Beautiful Valley Community Foundation (hereinafter the Foundation ), as a charitable Contribution, the following:. The Foundation is a nonprofit Oregon corporation exempt from taxation under Internal Revenue Code Section 501(c)(3), a public charity described in Section 170(b)(1)(A)(vi) of the Code, and therefore an appropriate institution within which to establish thus fund. The Foundation is authorized to accept additional contributions to the Fund in terms substantially similar to those set forth herein. Subject to the right of the Foundation to reject any particular donation, all such gifts, bequests and devises to this Fund shall be irrevocable once accepted by the Foundation. Purpose This Fund is being established for the following purpose(s):. Founding Advisor(S) (a) The designated Founding Advisor(s) for this fund are:. (or) (b) An Advisory Committee shall recommend grant distributions from the fund for the above specified charitable purpose(s), monitor each recipient s uses of grants distributed from the Fund and recommend to the Foundation Board of Directors such other actions as it deems appropriate under such rules or procedures as the Advisory Committee may adopt. The Foundation may act upon receiving the written recommendation(s) of the Chair of the Advisory Committee. The Advisory Committee is accountable to the Foundation Board of Directors. The following individuals, as listed on EXHIBIT B, are recommended to serve on the initial Advisory Committee: (or) (c) The Foundation Board of Directors shall serve as the Advisory Committee for the fund.

11 11 Distributions Founding Contributors(s) desire that the (income and principal) (annual net income) from the Fund be available for distribution during each 12-month period following the Foundation s fiscal year-end (6/30), in accordance with both their recommendations and the charitable purposes set forth in the Bylaws of the Community Foundation. (If annual net income is chosen, insert the following language: Net income shall be computed annually based upon the current spending policy of the Foundation currently 5% of the average past three year-end Fund balances.) Distribution shall be made by the Grants Committee of the Foundation, or such other committee(s) as may be designated by the Board of Directors of the Foundation, after receiving the recommendation(s) in writing from the fund advisor(s). Both the principal and interest of the Fund must be committed, granted or expended for purposes described in Code Section 170(c)(2)(b) to organizations described in Internal Revenue Code Sections 509(a)(1), (2) or (3). No distribution shall be made if such will, in the judgment of the Board of Directors, endanger the Foundation s Code section 501(c)(3) status. If any gifts to the Foundation for this Fund are received and accepted subject to a Donor s conditions or restrictions, such will be honored subject to the Foundation s authority to vary the terms of any gift if continued adherence to any condition or restriction is, in the judgment of the Foundation s Board of Directors, unnecessary, incapable of fulfillment, or inconsistent with the charitable needs of the communities served by the Foundation. Fees & Investments Founding Contributors hereby acknowledge receipt of the Administrative Fee Schedule attached hereto as Exhibit A and accept the terms of said schedule, and further understand that the fee schedule is subject to modification at the sole discretion of the Foundation s Board of Directors, and agree to be bound by the most current schedule of fees published by the Foundation. The Foundation shall have all powers necessary, or in its sole discretion desirable, to carry out the purposes of the Fund including, but not limited to, the power to retain, invest and reinvest the endowed assets of the Fund. Procedures & Variance Power Founding Contributors are familiar with and accept the terms of the Procedures for the Establishment and Operation of Funds, and corresponding Sections of the Bylaws of the Foundation and also understand that the Foundation, through its duly authorized committees, reserves the right to make the final decision regarding distributions from the Fund. In addition,

12 12 the Founding Contributors agree that the Fund shall at all times be subject to such terms and conditions including, but not by way of limitation, provisions for: (a) Presumption of Donor s intent; (b) Variance from Donor s direction; (c) Amendments In witness whereof, The Founding Contributors have executed this Transfer and the Foundation has caused this Transfer to be approved by its Board of Directors and to be executed by a duly authorized officer, all as of the day and year written below. Founding Contributor: Name of contributor Name of contributor By Elizabeth Peavey, President Beautiful Valley Community Foundation Accepted this day of,

13 13 Sample affiliate or community fund agreement Agreement establishing the Rural County Community Foundation as an affiliate of the Beautiful Valley Community Foundation This agreement has been made and entered into on this day of, by and between the Beautiful Valley Community Foundation, Inc., hereinafter referred to as BVCF, and the Rural County Community Foundation, hereinafter referred to as the Affiliate. Whereas, citizens of Rural County, Oregon, wish to create a local community foundation as an Affiliate of BVCF, a regional community foundation; and Whereas, the Board of Directors of BVCF is willing and able to accept the Rural County Community Foundation as an Affiliate; Now therefore, the parties agree as follows: 1. Purpose. The Affiliate will develop philanthropic funds for grantmaking for charitable purposes and organizations within the geographical boundaries defined as the Affiliate community. Affiliate community for purposes of this Agreement shall be defined as Rural County, Oregon. 2. Status of affiliate. The Affiliate will be an unincorporated division of BVCF, a not-for-profit Oregon Corporation exempt from taxation pursuant to 501(c)(3) of the Internal Revenue Code. The Affiliate shall operate under the governing instruments and control of the BVCF Board of Directors. 3. Affiliate board of directors. The Affiliate shall maintain a rotating Board of Directors. The role of the Affiliate Board shall be advisory. A chairperson will be named by the Affiliate Board. Other officers, committees, and/or additions may be named by the Affiliate Board as the need arises. The Affiliate Board shall adopt policies and procedures, which shall include the length of Affiliate Board member terms, the selection of new Affiliate Board members, and the process to fill Affiliate Board vacancies. 4. Acceptance of funds. The Affiliate may, with approval from BVCF, accept endowment, annual distribution, and special project funds. Existing permanent funds of BVCF that are directed to the benefit of the Affiliate community may be included in the record of the Affiliate s assets, subject to the agreement of any advisory committees or donors. 5. Grantmaking. The Affiliate Board shall evaluate proposals for grants from the component funds of the Affiliate and recommend to the BVCF Board of Directors those grants to be funded. In the case of advised funds, the advisors may recommend directly to BVCF any grants to be awarded. Final authority for grant approval will rest solely with the BVCF Board of Directors 6. Administrative fee for individual funds. Each individual Affiliate fund will be assessed the standard administrative fees as set by the BVCF Board of Directors.

14 14 7. Services of BVCF. Services provided by the BVCF to the Affiliate will include: (a) An annual independent audit as part of the BVCF audit. (b) An annual IRS report as a part of the BVCF s IRS Form 990. (c) Quarterly reports on the investments of the component funds and on all cash receipts and disbursements of the Affiliate. (d) Recognition in BVCF s annual report. (e) Recognition in BVCF s newsletter. (f) Legal advice in establishing permanent funds and other reasonable legal advice as requested by the Affiliate Board of Directors or the Affiliate Executive Director. (g) Maintenance and storage of all records of the Affiliate required to be kept under the laws governing community foundations. (h) Support in evaluating grant requests and monitoring grants funded and other reasonable support as requested by the Affiliate Board of Directors. 8. Contracts and grants. The Affiliate may not apply for a grant or enter into any contract or legal agreement without approval from the BVCF Board of Directors. 9. Public relations and fundraising. Any formally published material of a public relations or advertising nature must be approved or provided by BVCF. Any fundraising event must be approved in advance by BVCF. 10. Inactivity. In the event the Affiliate becomes inactive, all Affiliate funds will continue to be component funds of BVCF and the BVCF Board of Directors will assume the responsibility of assuring that each fund is achieving its potential. 11. Modification of agreement. Terms of this Agreement may be modified by mutual agreement of the BVCF Board of Directors and the Affiliate Board of Directors. 12. Variance power. BVCF, through its Board of Directors, reserves the right to vary the terms of any gift if continued adherence to any condition or restriction is, in the sole judgment of the Foundation s Board of Directors, unnecessary, incapable of fulfillment, or inconsistent with the charitable needs of the communities served by the Foundation. BVCF also reserves the sole right to determine questions of donor intent. By By Elizabeth Peavey, President Chair of the Affiliate Board Beautiful Valley Community Foundation Rural Community Foundation