Endowment Funds Procedure
The Endowment Funds Procedure enhances the current financial stability of the agency and to provide financial security for the future. The Board of Directors should seek funds through gifts, bequests, planned giving, insurance and all other mediums. (6 pages, 1,712 words)
Donations to the agency will be accepted for unrestricted use or for any one of the many special funds and programs that have been established. The agency may also accept a gift designated for a specific purpose for which no special fund has been established if it is within the scope of the agency’s mission. Unusual gifts, gifts that have conditions attached, or gifts that require the agency to assume an additional or a specific liability should be reviewed by the Board of Directors.
Advice of legal counsel should be obtained in all matters pertaining to planned giving, and no planned giving document should be executed without said advice. It’s not required that all gifts be accepted. When property other than cash, listed securities, or securities traded over-the-counter is involved, approval of the Budget and Finance Committee should be required.
Gifts of real property, such as homes, commercial structures, etc., may be accepted by the endowment under the unusual gifts policy. Gifts of real estate may be used to fund gift annuities or trusts. The endowment may accept life estate contracts that are without encumbrance. If the contract is encumbered in any way, the policy concerning unusual gifts will apply.
The endowment may accept ownership of any life insurance policy. If the donor has borrowed against the cash value of the policy, the gift of the policy should be reviewed under the “unusual gifts” policy to assure that the endowment will receive some residual benefit. The endowment may be designated as sole beneficiary or joint beneficiary with one or more individuals and/or organizations. The endowment may accept the assignment of dividends on any insurance policy.
Endowments Funds Procedure Activities
- Endowment Acceptance Guidelines
- Fund Instruments and their Limitations
- Investment of Funds
- Donor Consideration
- Reserve Fund
- Review and Amendments