Agency/Designated Endowment

Transcription

1 Agency/Designated Endowment This agreement is made on, 2016 between the Mid-Shore Community Foundation ("MSCF") and Talbot County Public Schools (the "Agency") to establish and govern the administration of an Agency/Designated Endowment Fund within MSCF. 1. Name of Fund. The fund shall be known as the Talbot County Public Schools Education Foundation Fund of the Mid-Shore Community Foundation (the "Fund"). 2. Purpose of Fund. The Fund shall receive and administer funds as an endowment to enrich and enhance educational and extracurricular opportunities for all Talbot County Public School students. 3. Property of the Fund. Foundation acknowledges receipt of ($ ) as the initial property of the Fund. The fund shall also include such additional property as may from time to time be transferred to the Foundation by the Agency or others for inclusion in the Fund and all undistributed income from the foregoing property. 4. Distributions from the Fund. This is an endowed fund. Distributions will be made under the terms of MSCF's spending policy for endowed funds as it is amended from time to time. The Fund will be managed using a total return concept of endowment management based on MSCF's spending policy rate, as adjusted from time to time by MSCF's board of directors. MSCF's spending policy for endowed funds is designed to maintain and, if possible, increase the real value (as adjusted by inflation) of the Fund while at the same time providing a relatively stable but predictable level of funding for the Agency. Distributions may be made annually, at the discretion of the Talbot County Public Schools Education Foundation Advisory Committee, according to MSCF's spending policy without regard to the recorded principal value of the Fund. MSCF's board of directors reviews the spending policy annually and approves the spending rate for the following year. The undersigned acknowledge that the Fund will be managed using a total return concept of endowment management based on MSCF s spending policy rate as adjusted from time to time by the board of directors. Page 1 of 5 Pages

2 5. Fees MSCF assesses a fee to help defray the costs associated with the administration and investment of the Fund. A schedule of the administrative fees in effect at the time of this agreement is attached. MSCF reserves the right to increase or decrease the administrative fee from time to time. 6. Policies and Procedures. The Founder(s) have received and reviewed the Fund Development Policy of MSCF (The Policies), which are incorporated herein by reference, and agree to the terms and conditions described therein. All contributions of any kind and from whatever sources, including any earnings and appreciation on such contributions to the Fund, will be subject to the terms of this Agreement. The Fund will become active once the initial gift is received by MSCF. The Founder(s) certify that all information presented in connection with this Agreement is accurate, and agree to notify MSCF in writing of any changes. In the event of any conflict between the terms of this Agreement and the Policies, the terms of this Agreement will govern. 7. Investments. IRS regulations permit the Founder(s) to indicate investment preferences for the Fund; however, MSCF retains final discretion regarding the investment of the Fund. The undersigned understand that investments will be administered in accordance with MSCF's investment policies as determined from time to time by its board of directors. The undersigned acknowledge that investments are subject to the risk of market and interest rate fluctuation, and that any investment gain or loss generated will be credited or charged to the Fund. The total investment return of each investment vehicle is net of its operating expenses. 8. Transfer to Agency. The Foundation will transfer the Initial Contribution or other principal contributed by the Agency to the Fund, either in whole or in part, to the Agency or to other qualified charitable organizations under the following circumstances: a) Agency requests the transfer and the Foundation agrees that it is in the best interest of the Agency and is in accordance with the charitable purposes of the Foundation. b) Other circumstances occur which, in the sole discretion of the Foundation, make such transfer desirable and in the best interest of the Agency. The Foundation will make such transfer provided that the Foundation is satisfied that the transferee is at the time a qualified charitable organization. Contributions made by donors directly to the Talbot County Public Schools Foundation Fund of MSCF will remain on deposit at MSCF as a designated endowment for the Talbot County Public Schools Education Foundation. Page 2 of 5 Pages

3 9. Changed Conditions. Should the purposes for which the Fund was created ever become obsolete, inconsistent with the charitable needs of the community or incapable of fulfillment, as determined by MSCF's board of directors in its sole discretion, MSCF's board of directors shall have the power and authority to modify any restriction or condition on the distribution of funds set forth in this Agreement. In adopting any such modification, the board of directors shall endeavor to use the funds for a purpose as similar as possible as those set forth in this Agreement. The undersigned are the Founders of the Fund and agree to the terms of this Agreement. This Agreement shall be governed in all respects by the laws of the State of Maryland. MSCF is authorized to amend this Agreement to conform to the provisions of any applicable law or government regulation. Talbot County Public Schools Talbot County Public Schools Education Foundation Mid-Shore Community Foundation Robbin F. Hill, Chief Program Officer Page 3 of 5 Pages

4 FY 2017 Administrative Fees This administrative fee schedule applies to all funds of the Mid-Shore Community Foundation. These fees are used to support the Community Foundation s operating expenses. A. Endowed / Permanent Funds Annual administrative fees on the market value of endowed fund assets: First $500, % Amount Over $500, % Multiple funds established by the same donor-advisor(s) may not be combined for purposes of calculating fund fees. The above annual fees are assessed monthly, based upon the daily average fair market value of assets for the month. For newly established funds, the fee will be prorated in the first month assessed based on the date the fund is created. An annual minimum fee of $250 applies to all endowed/permanent funds. B. Organizational / Agency Endowments Funds established by a nonprofit organization for the purpose of creating a permanent endowment will be charged an administrative fee of.75%, computed monthly on the daily average market value of the assets. C. Non-Endowed Funds Funds established by a donor or a nonprofit organization that allows unrestricted access to principle. Annual administrative fees on the market value of non-endowed fund assets: First $500, % Amount Over $500, % D. Scholarship Endowments Endowments for scholarships administered by MSCF will be charged an administrative fee of 1.75%, computed monthly on the average daily market value of the assets. An annual minimum fee of $250 applies to all scholarship endowments. E. Fiscal Sponsorships and Pass-Through Funds Short-term Provisional funds that are established solely for pass-through purposes will be charged a flat fee at the time each deposit to the fund is made. Such fees will range Page 4 of 5 Pages

5 from 5% to 10%, depending upon the extent of fund management time that is estimated to be required. Lower fees may be negotiated if the transfer activity is nominal. In addition, no interest earnings will be credited to provisional funds. Multiple funds established by the same donor-advisor(s) may not be combined for purposes of calculating fund fees. An annual minimum fee of $250 applies to all non-endowed funds. F. Fees for Additional Services Funds will also be charged for any extraordinary direct expenses incurred on their behalf, such as a commission for the sale of contributed stock or expenses associated with the sale of a gift of property. Additional fees may be assessed for extra services such as special grant processing, program development and management, scholarship review, extraordinary technical support, or other non-standard services. G. Waiver or Discounting of Fees MSCF fees are never waived or discounted for funds under $5 million. Fees may be negotiated for larger endowments where the amount of staff time required will be nominal. Page 5 of 5 Pages