PROCEDURE POLICY DEFINITIONS ER ENDOWMENT MANAGEMENT. Section: Subject: External Relations (ER) Fundraising. APPROVED: President and CEO

Similar documents
MT. SAN ANTONIO COLLEGE FOUNDATION STATEMENT OF ASSETS, LIABILITIES, AND NET ASSETS - CASH BASIS JUNE 30, 2004 ASSETS

National FFA Foundation, Inc.

Trust and Endowment Management Policy

Endowment Management Policy ;;

PORTLAND COMMUNITY COLLEGE FOUNDATION. Audited Financial Statements

CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED MARCH 31, 2017

FUND ACCOUNTING TRAINING

New Hampshire Charitable Foundation and Affiliated Organization

WEST TEXAS A&M UNIVERSITY FOUNDATION AUDITED FINANCIAL STATEMENTS. For Year Ended August 31, 2007 (With comparative totals for August 31, 2006)

New Hampshire Charitable Foundation and Affiliated Organization

MONTANA STATE UNIVERSITY BILLINGS FOUNDATION Audited Financial Statements June 30, 2014 and 2013

HUDSON VALLEY COMMUNITY COLLEGE FOUNDATION

Grand Valley University Foundation. Financial Report June 30, 2017

Central Indiana Community Foundation, Inc. The Indianapolis Foundation, Inc. Legacy Fund, Inc. and Affiliated Organizations

VASSAR COLLEGE. Financial Statements. June 30, 2017 and (With Independent Auditors Report Thereon)

California State University, Northridge Foundation Financial Statements (With Supplementary Information) and Independent Auditor's Report

UNIVERSITY OF CENTRAL MISSOURI FOUNDATION (A Component Unit of the University of Central Missouri) Auditor s Report and Financial Statements

Policy. Department of Finance Effective Date: August 13, 2010 Previous Date: April 1, 2010

California State University, Stanislaus Foundation

PROCEDURE POLICY GOVERNING PRINCIPLE PROCEDURE ER GIFT ACCEPTANCE ACCEPTING, ACKNOWLEDGING AND DOCUMENTING THE RECEIPT OF GIFTS

UNIVERSITY OF VICTORIA FOUNDATION FINANCIAL STATEMENTS MARCH 31, Statement of Administrative Responsibility for Financial Statements 2

PROVIDENCE COLLEGE. Financial Statements. June 30, 2017 and (With Independent Auditors Report Thereon)

VASSAR COLLEGE. Financial Statements. June 30, 2016 and (With Independent Auditors Report Thereon)

SECTION FUNDAMENTAL ACCOUNTING POLICIES

Governance and Administration

EASTERN WASHINGTON UNIVERSITY FOUNDATION FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2012 AND 2011

GEORGIA HEALTH SCIENCES FOUNDATION, INC.

GEORGIA HEALTH SCIENCES FOUNDATION, INC.

NAPA VALLEY COLLEGE FOUNDATION

VASSAR COLLEGE. Financial Statements. June 30, 2018 and (With Independent Auditors Report Thereon)

ALBERTA CANCER FOUNDATION FINANCIAL STATEMENTS MARCH 31, 2017

POLICY AND PROCEDURE STATEMENT

Endowment & Gift. Original Presentation: Spring 2014

REPORT TO THE BOARD OF GOVERNORS ENDOWMENT FUND: NAME CHANGE REQUEST FOR THE NORTHWOOD PULP AND TIMBER LTD SCHOLARSHIP ENDOWMENT FUND

GLOSSARY. A type of internal borrowing (temporary or long term) between fund groups for which a due to/from must be set up.

REPORT TO THE BOARD OF GOVERNORS

Financial Statements and Report of Independent Certified Public Accountants. University of Nevada, Reno Foundation

NORTHERN ARIZONA UNIVERSITY FOUNDATION, INC. AND SUBSIDIARIES

Foundation for Muskegon Community College

FLORIDA 4-H CLUB FOUNDATION, INC. GAINESVILLE, FLORIDA FINANCIAL STATEMENTS MARCH 31, 2015

CONTRA COSTA COLLEGE FOUNDATION

REPORT TO THE BOARD OF GOVERNORS Agenda Item #5.13

Misericordia Hospital Foundation. Financial Statements March 31, 2013, March 31, 2012 and April 1, 2011

Funds. Authority: Related Links: Responsible Office: Scope. Definitions. Page 1 of 23

Financial Statements and Independent Auditors' Report June 30, 2017 (With Summarized Financial Information for the Year Ended June 30, 2016)

California Polytechnic State University Foundation

NORTHERN ARIZONA UNIVERSITY FOUNDATION, INC. AND SUBSIDIARIES

CONNECTICUT COMMUNITY FOUNDATION, INC.

MANCHESTER UNITED METHODIST CHURCH PERMANENT ENDOWMENT FUND COMMITTEE POLICIES AND GUIDELINES

California State University, Northridge Foundation Financial Statements (With Supplementary Information) and Independent Auditor's Report

NORTHERN ARIZONA UNIVERSITY FOUNDATION, INC.

The Bellin Health Foundation, Inc. Green Bay, Wisconsin. Financial Statements Years Ended September 30, 2017 and 2016

Current Funds Unrestricted used to report resources that are expendable for any purpose in performing the primary objectives of the entity

THE COLLEGE OF NEW JERSEY FOUNDATION, INC. (A Component Unit of The College of New Jersey)

STATE CENTER COMMUNITY COLLEGE FOUNDATION FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2015 WITH COMPARATIVE TOTALS FOR 2014

NORTHERN ARIZONA UNIVERSITY FOUNDATION, INC. AND SUBSIDIARIES

KANSAS STATE UNIVERSITY FOUNDATION. Manhattan, Kansas FINANCIAL STATEMENTS WITH REPORT OF CERTIFIED PUBLIC ACCOUNTANTS

THE COLLEGE OF NEW JERSEY FOUNDATION, INC. (A Component Unit of The College of New Jersey)

Consolidated Financial Statements June 30, 2016 Northern Arizona University Foundation, Inc. and Subsidiaries

W.O. SMITH NASHVILLE COMMUNITY MUSIC SCHOOL, INC. NASHVILLE, TENNESSEE FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR S REPORT JUNE 30, 2016 AND 2015

CENTRAL WASHINGTON UNIVERSITY FOUNDATION AND AFFILIATE COMBINED FINANCIAL REPORT JUNE 30, 2018

Applying FASB's New NFP Financial Statement Standard

Financial Statements For The Years Ended June 30, 2010 and 2009

Financial Statements Year Ended June 30, (With Comparative Totals for 2012)

FLORIDA 4-H CLUB FOUNDATION, INC. FINANCIAL STATEMENTS MARCH 31, 2017

SADDLEBACK COLLEGE FOUNDATION

FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT FLORIDA 4-H CLUB FOUNDATION, INC. GAINESVILLE, FLORIDA MARCH 31, 2012

MINNESOTA 4-H FOUNDATION

Donations Policy. Finance Department policy on the financial management of donations.

NORTHERN ARIZONA UNIVERSITY FOUNDATION, INC. AND SUBSIDIARIES

Consolidated Financial Statements Milton Academy

The Catholic Foundation of Central Florida, Inc. Financial Statements

1.2.1 To offer diverse opportunities to all constituencies for support of the Conference;

TEXAS STATE UNIVERSITY DEVELOPMENT FOUNDATION. Financial Statements. For the Years Ended June 30, 2017 and 2016 (With Independent Auditors' Report)

Financial Statements and Report of Independent Certified Public Accountants. University of Nevada, Reno Foundation. June 30, 2017

Missouri State University Foundation. Independent Auditor s Report and Financial Statements

HADLEY INSTITUTE FOR THE BLIND AND VISUALLY IMPAIRED. FINANCIAL STATEMENTS June 30, 2016 and 2015

California Polytechnic State University Foundation

THE MONMOUTH COLLEGE MONMOUTH, ILLINOIS FINANCIAL STATEMENTS. June 30, 2017 With Prior Year Summarized Comparative Information

YOUNG LIFE AND SUBSIDIARIES. Consolidated Financial Statements With Independent Auditors Report. September 30, 2018 and 2017

SAN MARINO SCHOOLS FOUNDATION FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2017 AND 2016

Emporia State University Foundation, Inc.

Catholic Education Foundation of the Roman Catholic Archdiocese of Los Angeles. Financial Report June 30, 2014

Consolidated Financial Statements June 30, 2017 Northern Arizona University Foundation, Inc. and Subsidiaries

Frequently Asked Questions About Endowments Updated 4/18/17

New Hampshire Charitable Foundation and Affiliated Organization

Consolidated Financial Statements June 30, 2018 Northern Arizona University Foundation, Inc. and Subsidiaries

YOUNG LIFE AND SUBSIDIARIES. Consolidated Financial Statements With Independent Auditors' Report. September 30, 2017 and 2016

Financial Statements and Report of Independent Certified Public Accountants. University of Nevada, Las Vegas Foundation.

ASSOCIATED COLLEGES OF ILLINOIS, INC. FINANCIAL STATEMENTS

Catholic Education Foundation of the Roman Catholic Archdiocese of Los Angeles. Financial Report June 30, 2017

New Liquidity Disclosure Examples

STATE OF NORTH CAROLINA

Babson College Consolidated Financial Statements June 30, 2013 and 2012

Financial Statements. Wheelock College. June 30, 2015 and 2014

Internal Audit Department

Sunbury Area Community Foundation

FINANCIAL STATEMENTS SAMPLE UNIVERSITY JUNE 30, 2010 AND 2009

YOUNG LIFE AND SUBSIDIARIES

Report of Independent Auditors and Financial Statements with Supplementary Information for WESTERN WASHINGTON UNIVERSITY FOUNDATION

Transcription:

Section: Subject: External Relations (ER) Fundraising Legislation: Trustee Act (RSA 2000 ct-8) Effective: January 25, 2011 Revision: June 6, 2016;September 1, 2016 (reformatted) ER.3.4.1 ENDOWMENT MANAGEMENT APPROVED: President and CEO POLICY The policy of the Board of Governors is to permit the establishment of endowment funds, through donation and internal restrictions, to provide a strong and stable level of support for specified charitable purposes that reflect SAIT s mission and students scholarship needs. DEFINITIONS PROCEDURE Capitalized investment income Charitable purpose trust Endowment Net investment income that has been added to the total endowment balance. A trust established for a specified charitable purpose. Three parties must be clearly defined in this agreement: the donor, the trustee (SAIT) and the beneficiary or object of the endowment (the specified charitable purpose). A donation made with the expectation and understanding that the principal amount will be invested, the investment earnings generated will be used to advance a specified charitable purpose, and there will be no encroachment on the original donated gift principal. Procedure ER.3.4.1 Page 1 of 5

Endowment principal Expendable portion Externally restricted endowment Internally restricted endowment Original amount(s) of donation or resources transferred, excluding accumulated capitalized investment income. Funds available for disbursement (for example, scholarships) in accordance with the terms of the endowment. An endowment subject to externally imposed stipulations specifying that the donation be maintained permanently. An externally restricted endowment is considered a charitable purpose trust. Resources transferred to endowments by SAIT s Board of Governors. Internally restricted endowments may take one of two forms: 1. Established as a charitable purpose trust. These endowments typically exist in perpetuity and the Board permanently changes the nature of ownership of the funds from owner to trustee. 2. Established as a quasi-endowment over which the Board retains ownership, and therefore the ability to reallocate the principal and/or investment returns in future for another purpose should circumstances change. Investment Committee Net investment income Reserve fund Total endowment balance Trust A standing committee of the Board of Governors. Revenue, gains and losses earned on the total endowment balance, net of fees for external investment management services. Funds allocated by the Board of Governors to help meet endowment goals and objectives. The sum of endowment principal and accumulated capitalized investment income. A legal relationship where a donor transfers fiduciary responsibility of assets to a person or institution, the trustee, to be managed for the benefit of designated beneficiaries. Trusts are subject to provisions of Alberta s Trustee Act. Procedure ER.3.4.1 Page 2 of 5

Unrestricted endowment An unrestricted endowment contribution is one where the beneficiary or object is defined in broad terms, essentially supporting SAIT s mission and the activities conducted in pursuit thereof. PROCEDURE A. Governing Principles 1. The overall goal of endowment fund management is proper stewardship of the endowed funds and amounts available for spending. 2. The primary objectives for endowments are: a) To protect the donors endowment principal. b) To grow the economic value of endowment principal over time. c) To provide an annual amount to be expended in support of the specified charitable purpose. 3. Funds may be invested as a single pool in order to optimize net return and the diversification of risk. Funds are invested as established in procedure FN.9.1.1 Investment of Funds in Excess of Operating Requirements. B. Allocations to Funds 1. In order to achieve the primary objectives for endowment funds, the following guidelines have been established: a) The annual expendable portion will be calculated as a percentage of the total endowment balance, subject to specific provisions in individual endowment agreements. This spending rate is determined by the Investment Committee, in consideration of relevant factors including investment performance and cumulative capitalized investment income, and reviewed annually by the Investment Committee with the objective of maintaining the rate over a three to five year period. b) For the purpose of paragraph A 2.b) of this procedure: Procedure ER.3.4.1 Page 3 of 5

i) In each year, net investment income earned in excess of the expendable portion will be capitalized to the individual endowment funds and reinvested. ii) Amounts available for spending may be limited. iii) The amount of cumulative capitalized interest is targeted to equal at least the spending allocation of the previous year. c) The objectives in paragraphs A 2.b) and A.2.c) of this procedure may be accomplished using the following sources of funding: capitalized investment income; unrestricted donations; allocation from new donations received, where allowed; subsidy from operating funds; requests to the original donor or the reserve fund, if available. 2. The Investment Committee will meet annually to determine the annual allocation of funds to achieve the requirements as outlined above. C. Unrestricted Endowment 1. A general unrestricted endowment may be created and named based on the decision of SAIT s Executive Management Committee. The fund s name and objective may be changed from time to time at the discretion of the Executive Management Committee in order to meet SAIT s strategic goals. Any name change will comply with procedure ER.3.1.4 Gift Acceptance - Naming and Renaming Buildings and Facilities. D. Administration and Compliance 1. All endowment management practices will comply with legislation and contractual agreements. 2. In circumstances where donor understanding may be different from SAIT s guidelines or understanding on an agreement, SAIT will attempt to maintain the endowment s original spirit and intent. 3. SAIT will ensure appropriate record keeping of endowments and donor agreements, and will ensure transparency to answer donor questions and resolve issues. 4. Exceptions to this policy and procedure must be approved by the Investment Committee. Procedure ER.3.4.1 Page 4 of 5

POLICY/PROCEDURE REFERENCE ER.3.4 Endowment Management policy Procedure ER.3.4.1 Page 5 of 5