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									A Donor-Advised Fund at KBFUS - Here is how it works!

The King Baudouin Foundation United States (KBFUS) helps U.S. donors achieve their philanthropic goals in Europe and sub-Saharan Africa. We make sure that their giving remains personalized, efficient, tax deductible and secure. If you intend to make multiple donations over time, to support either the same organization or different nonprofit organizations overseas, you can open a Donor-Advised Fund at KBFUS. A personal, family or corporate Donor-Advised Fund provides a structure that makes it easy to accomplish both your tax planning and charitable giving goals. You can make additional contributions to your Donor-Advised Fund whenever it suits you, claim an immediate tax deduction and inform us later how you would prefer the contribution to be used. You can lend your name to your Fund and determine its area(s) of focus.

Content A. Setting up a KBFUS Donor-Advised Fund I. II. III. IV. Establishment & Contributions Investment of Fund Assets Reporting Fees page 3 page 2

B. Making a Grant Recommendation from a KBFUS Donor-Advised Fund I. II. III. IV. The Process Length of the Process Minimum Amount for Distributions Donor Recognition

Attachment 1, Letter of Request to Set Up Donor-Advised Fund at KBFUS Attachment 2, Investment Policy for Donor-Advised Funds

page 5 page 10

A. SETTING UP A KBFUS DONOR-ADVISED FUND

I. Establishment & Contributions You may establish a Donor-Advised Fund at KBFUS with a minimum contribution of $15,000, for which you may take an immediate and full tax deduction even if you intend the grants from your Donor-Advised Fund to be distributed over many years. Contributions can be made by check, money order, credit card (online), wire transfer or through the transfer of stocks, bonds, mutual funds, real estate or other types of property. The $15,000 minimum may be reached with a single contribution or through pooling of gifts received from multiple donors. Corporations can contribute to their Fund from various sources, such as a corporate giving program or a corporate foundation. Individuals can contribute from an existing giving vehicle such as a private foundation or a donor-advised fund at a community foundation or national fund. They can invite friends and relatives to contribute on the occasion of an anniversary or a wedding. They can also use their Fund as a tool in their estate planning - donors may name their Donor-Advised Fund as the beneficiary of a bequest, charitable remainder trust or life insurance policy. To set up your Donor-Advised Fund at KBFUS, please complete and return the letter in Attachment 1 (see page 5), together with a first contribution to your Fund. KBFUS will send you a countersigned copy of your letter by return mail.

II. Investment of Fund Assets Through professional investment, KBFUS Donor-Advised Funds have the potential to earn income and grow tax-free over time, increasing the amounts available for grants to non-profit organizations. Assets of Donor-Advised Funds with fund balances over $15,000 may be allocated to one of three investment pools that were selected by the Board of Directors of KBFUS. These pools offer a range of alternatives and represent varying degrees of risk. They enable KBFUS' Board, based upon advice received from the donor, to choose the option which best meets their mutual expectations in terms of level of liquidity, current income and/or long-term capital appreciation. In addition, KBFUS welcomes arrangements with selected investment advisors, to be governed by a separate agreement between KBFUS and the investment advisor. For more information, please see our Investment Policy for Donor-Advised Funds in Attachment 2, page 10.

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III. Reporting KBFUS will send a quarterly statement to each donor reporting the current value of his/her Donor-Advised Fund‟s assets and an overview of all contributions to and distributions from the Fund. Donors may also obtain an interim report at any time, upon simple request.

IV. Fees There are no set-up or legal fees associated with establishing a Donor-Advised Fund at KBFUS. KBFUS charges a management fee on each grant made from a Donor-Advised Fund to a non-profit organization overseas, as follows: - 4% of the first $100,000 of each grant to a non-profit organization overseas; - 2% of the next $300,000; and - 1% of the amount of each grant in excess of $400,000. In addition, an annual investment fee is applicable for Donor-Advised Funds with invested assets, as follows: - 1% of the Fund‟s assets (0.25% assessed quarterly).

B. MAKING A GRANT RECOMMENDATION FROM A KBFUS DONOR-ADVISED FUND

I. The Process 1. Grant Recommendation: Donors may make recommendations for a grant distribution from their Donor-Advised Fund at any time. Recommendations can be made by e-mail, fax or letter and should specify the name and country of the recommended grantee, the amount and specific purpose, if any, of the proposed grant, and whether the grant should be made anonymously or identify the name of the Donor-Advised Fund. If you don‟t have a favorite organization in mind, we can help you identify premier organizations in the country or field of your interest. 2. Due Diligence Process: Upon receipt of your recommendation, we request information from the non-profit organization overseas, on its structure, funding, activities and on the nature of the program to be funded. The information is reviewed by our Executive Secretary. Through our due diligence process, we make every effort to make sure that your grant moneys will indeed be used for charitable purposes. Please check our „Internal Anti-Terrorist Funding Procedures‟ at www.kbfus.org.

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3. Approval of the Grant and Agreement with the Grantee: Your recommendation is then submitted for approval to our Board of Directors. In order for donors to obtain a charitable deduction under U.S. tax law, KBFUS retains exclusive control as to the use of the assets contributed to KBFUS. Although we will not be bound by any donor's suggestion, we will give serious consideration to your recommendation. Following the Board's approval, a grant agreement is signed with the grantee, specifying the purpose for which the grant may be used and requesting a brief report after one year. 4. Transfer of the Grant Amount: Upon receipt of the signed agreement, KBFUS proceeds with the payment to the grantee. Most of our grants are made via wire transfer. In some cases we do send a check.

II. Length of the Process The due diligence and grants administration process usually takes between three and five weeks, depending upon the responsiveness of the suggested grantee.

III. Minimum Amount for Distributions There is a $5,000 minimum for grants to overseas organizations. This minimum grant amount was set to ensure that our grantmaking process remains cost-effective, taking into account that the process requires some efforts from the non-profit organization and that international grants come with higher bank fees.

IV. Donor Recognition A letter from KBFUS recognizing the name of the Donor-Advised Fund accompanies the grant transmission, unless the donor instructs KBFUS that they wish to remain anonymous. With grants from corporate DonorAdvised Funds, we can either transfer the grant amount to the non-profit organization, or forward a check (made payable to the grantee) to the corporation‟s local management, for remittance to the grantee.

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Attachment 1

KING BAUDOUIN FOUNDATION UNITED STATES

LETTER OF REQUEST TO SET UP DONOR-ADVISED FUND AT KBFUS

- Please complete, sign and return this letter to KBFUS, together with a first contribution to your Fund - KBFUS will send you a countersigned copy of your letter by return mail - If you have any questions, please contact us at (212) 713 7660, info@kbfus.org -

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_________________ (date) To the Board of Directors King Baudouin Foundation United States, Inc. 10 Rockefeller Plaza, 16th Floor New York, NY 10020 Ladies and Gentlemen: With this letter, I am / we are delivering to you the property listed below. This property constitutes an irrevocable gift to the King Baudouin Foundation United States, Inc. (the "Foundation") upon your acceptance of the gift and the following terms and conditions: Donor-Advised Fund Name A fund shall be established on the books of the Foundation and be known as the: ………………………………………………………………………………………… ("the Fund"). Objective of the Donor-Advised Fund Consistent with the Foundation's exempt purposes, the principal purpose of the Fund shall be to: ……………………………………………………………………………………………………………… ……………………………………………………………………………………………………………… Description of Property Delivered to the King Baudouin Foundation United States (The Fund shall include the property delivered with this letter and described below, and any other property which later may be transferred to the Foundation by the donor(s) or other parties and accepted by the Foundation for inclusion in the Fund.) �� Check or Money Order made payable to KBFUS $ ………………

�� Wire Transfer $ ……………… Account information: Citibank, 1 Rockefeller Plaza, New York, NY 10020 ABA: 021000089, SWIFT: CITIUS33 Account Number: 9970182790, King Baudouin Foundation United States

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�� Online Credit Card Gift $ ……………… (Go to www.kbfus.org, click on the ‘Donate Now’ button and write your Fund’s name under ‘Giving Option 4: Other Purposes’. Note: A 3% credit card processing fee applies to all donations received online.) �� Contributions of other types of property. (Please contact KBFUS to discuss) Investment of the Fund‟s Assets (Assets of Donor-Advised Funds with fund balances over $15,000 may be allocated to one of three investment pools that were selected by the Board of the Foundation. For more details, please see our Investment Policy for Donor-Advised Funds in Attachment 2, page 10.) �� I / we do NOT recommend that the Fund‟s assets be invested. �� I / we do recommend that the Fund‟s assets be invested and also recommend allocation to the following investment pool: �� Growth Pool �� Growth & Income Pool �� Money Market Pool Privilege of Making Recommendations I / we hereby designate the following individual to act on my / our behalf in submitting recommendations to the Foundation for organizations and projects to be supported: Name Street Address City, State, Zip Phone Email ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… …………………………………………………………………………………………

(Any person so designated shall be subject to various restrictions and obligations imposed by the Foundation in order to assure compliance with the federal tax laws.) Acknowledgement Options �� Please recognize the name of this Donor-Advised Fund in the Foundation‟s communication with the Fund‟s grantees. �� Please make all grants from this Donor-Advised Fund anonymously.

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Fees and Expenses I / we understand that KBFUS will charge the following management fee for each grant made from the Fund: - 4% of the first $100,000 of each grant to a non-profit organization; - 2% of the next $300,000; and - 1% of the amount of each grant in excess of $400,000. In addition, an annual investment fee is applicable for Donor-Advised Funds with invested assets, as follows: - 1% of the Fund‟s assets (0.25% assessed quarterly). I / we also understand that any costs to the Foundation from accepting or transferring the amounts contributed to the Foundation for the Fund shall be paid from the Fund. Certification I / we have received a copy of the Foundation‟s Procedures for Advised Funds and understand that: 1. The Fund shall be the property of the Foundation and shall not be deemed a separate trust fund held by it in a trustee capacity. The Foundation shall have the ultimate authority and control over all property in the Fund, and the income derived therefrom, for the charitable purposes of the Foundation. All grants to the Fund shall be irrevocable once accepted by the Foundation. The Fund shall be used only for the charitable purposes of the Foundation as set forth in its organizational and governing documents. The Foundation shall hold and administer the gift made with this letter and any subsequent contributions to the Fund under the terms and conditions set out in this letter and subject to the terms and conditions set forth in the Foundation's governing instruments, including its articles of incorporation and bylaws, as amended from time to time and any applicable resolutions of the Foundation's Board of Directors. Except to the extent inconsistent with the terms and conditions set out in this letter, the Fund shall be administered under the Procedures for Operation of Advised Funds approved by the Foundation, including any amendments or additions to those Procedures made by the Foundation from time to time. Distributions from the Fund shall be made at such times, in such amounts, in such ways and for such purposes as the Foundation shall determine. The Donor may from time to time submit to the Foundation recommendations with respect to distributions, which recommendations shall be solely advisory, and the Foundation shall not be bound by such recommendations. In determining whether to make a distribution recommended by the Donor, the Foundation shall examine the following: (a) the prospective recipient's status as an organization described in Section 170(b)(1)(A) of the Internal Revenue Code of 1986, as amended (the "Code") or the non-U.S. equivalent of a U.S. organization described in Section 170(b)(1)(A) of the Code based upon the standards set out by the Internal Revenue Service in Revenue Procedure 92-94 (or any successor guidance); (b) the prospective recipient's willingness to cooperate with the Foundation's exercise of expenditure responsibility with respect to the distribution in accordance with Section 4945(h) of the Code; (c) the prospective recipient's leadership, reputation, and financial status; (d) the consistency of the project's objectives with the Foundation's exempt purposes; and (e) the procedures for measuring achievement of the goals of the program to be funded by the proposed grant.

2. 3.

4.

5.

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6.

7. 8.

9.

Neither the Donor nor any advisor to the Donor nor any person related to the Donor or an advisor to the Donor may receive, directly or indirectly, more than an incidental benefit as a result of a distribution from the Fund (such as a benefit provided by the recipient of the distribution) and no distributions will be used to discharge or satisfy a legally enforceable pledge or obligation of any person, including the Donor. Neither the Donor nor any advisor to the Donor nor any person related to the Donor or an advisor to the Donor may receive any grant, loan, compensation, or similar payment from the Fund. Nothing in this Agreement shall affect the status of the Foundation as an organization described in Section 501(c)(3) of the Code and as an organization which is not a private foundation within the meaning of Section 509(a) of the Code. This Agreement shall be interpreted to conform to the requirements of the foregoing provisions of the federal tax laws and any regulations issued pursuant thereto. The Foundation is authorized to amend this Agreement to conform to the provisions of any applicable law or government regulation in order to carry out the purposes of this Fund. References herein to provisions of the Internal Revenue Code of 1986, as amended, shall be deemed references to the corresponding provisions of any future Internal Revenue Code. This agreement shall be governed by the internal laws of the State of Georgia.

Please indicate below your acceptance of this gift and of the terms and conditions noted above. Very truly yours, Signature Name Street Address City, State, Zip Phone Email ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… …………………………………………………………………………………………

ACCEPTANCE BY THE KING BAUDOUIN FOUNDATION UNITED STATES (KBFUS) Accepted this ____ day of ______________, ____. Receipt of the above-described property on this date is acknowledged. King Baudouin Foundation United States, Inc.

_________________________________ By Jean Paul Warmoes, Executive Secretary

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Attachment 2

KING BAUDOUIN FOUNDATION UNITED STATES INVESTMENT POLICY FOR DONOR-ADVISED FUNDS

Donors who intend to make multiple donations over time, to support non-profit organizations in Europe and/or sub-Saharan Africa, can set up a Donor-Advised Fund at the King Baudouin Foundation United States (KBFUS). With a Donor-Advised Fund, they can make additional contributions whenever it suits them, claim an immediate tax deduction and inform us later how they would prefer the contribution to be used. (See ‘A Donor-Advised Fund at KBFUS - Here is how it works’) Through professional investment, KBFUS Donor-Advised Funds have the potential to earn income and grow tax-free over time, increasing the amounts available for grants to non-profit organizations. The Board of Directors of KBFUS has established three investment pools among which the moneys held in a Donor-Advised Fund will be allocated. These investment pools come with varying degrees of risk, levels of liquidity, and balance between current income and long-term capital appreciation. Although the Board of Directors of KBFUS retains the ultimate authority to decide how a Donor-Advised Fund will be invested, the Board welcomes advice from the donor, at the time the Donor-Advised Fund is first created, as to which of the three investment pools will be most appropriate for his/her Fund. (See ‘I. A Selection of Three Investment Pools’) In addition, KBFUS welcomes arrangements with selected investment advisors. Such arrangements are governed by a separate agreement between KBFUS and the investment advisor, and subject to approval by the Board of Directors of KBFUS. (See ‘II. Arrangements with Selected Financial Institutions and Wealth Managers’)

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I. A Selection of Three Investment Pools: Assets of Donor-Advised Funds with fund balances over $15,000 may be allocated to one of three investment pools that were selected by the Board of Directors of KBFUS (see below). These pools offer a range of alternatives and represent varying degrees of risk. They enable KBFUS' Board, based upon advice received from the donor, to choose the option which best meets their mutual expectations in terms of level of liquidity, current income and/or long-term capital appreciation. The first two investment pools (Growth Pool and Growth & Income Pool) invest in Exchange Traded Funds (ETFs) from iShares (Barclays Global Investors). ETFs track the composition and performance of the world‟s leading market indexes. Like mutual funds, ETFs represent a fractional ownership in an underlying portfolio of securities. However, unlike mutual funds, ETFs trade on an exchange just like stocks. They have lower expense ratios than most mutual funds.

A. Investment Pools 1. Growth Pool This Pool provides the growth potential associated with an equity portfolio with a hedge of some fixed income investments. This Pool will generally be selected when, based upon advice received from the donor, part of the donor's contributions are likely to be invested for at least four years, and KBFUS and the donor wish to grow the Fund during that time period. Debt/Equity Ratio: 25% Fixed Income & Cash / 75% Equity Underlying asset allocation: - Cash 8% - iShares Lehman Aggregate Bond 17% - iShares S&P 500 Index 22% - iShares Russell Midcap Index 18% - iShares Russell 2000 Index 15% - iShares MSCI EAFE Growth Index 14% - iShares S&P Global Technology Sector Index 6%

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2. Growth & Income Pool This Pool provides a balance of fixed income and equity investments. This Pool will generally be selected when, based upon advice received from the donor, part of the donor's contributions are likely to be invested for at least three years. Debt/Equity Ratio: 50% Fixed Income & Cash / 50% Equity Underlying asset allocation: - Cash - iShares Lehman Aggregate Bond - iShares Dow Jones Select Dividend Index - iShares Dow Jones U.S. Real Estate Index - iShares S&P Global Utilities Sector Index 3. Money Market Pool This Pool allows the capital of a donor's contributions to be strictly preserved. This Pool will generally be selected when, based upon advice received from the donor, all of the donor's contributions are likely to be distributed within one year. Debt/Equity Ratio: 100% Cash and Cash Equivalents B. Investment Fees and Expenses. Donor-Advised Funds with invested assets are charged an annual investment fee, which is assessed quarterly and is calculated as a percentage of the Fund‟s assets. C. Increase/Decrease in Donor-Advised Fund Value. All income from the investment of a Donor-Advised Fund belongs to KBFUS and KBFUS' Board of Directors has the sole discretion as to how such income will be allocated. The Board's current practice is to allocate the income from the investment of a particular Donor-Advised Fund to that Fund and to permit the donor to make recommendations as to the purposes for which that investment income will be distributed. Any increase or decrease in the value of a Donor-Advised Fund affects only the amount available for future grants and does not affect the donor‟s personal assets or tax situation. Investment income credited to a Fund does not constitute income to the donor and does not qualify for an additional charitable deduction by the donor. D. Reporting. KBFUS will send a quarterly statement to each donor reporting the current value of the Donor-Advised Fund‟s assets and an overview of all contributions to and distributions from the Fund.

8% 42% 28% 12% 10%

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II. Arrangements with Selected Financial Institutions and Wealth Managers: In addition, KBFUS welcomes arrangements with selected financial institutions and wealth managers (“investment advisors”). Such arrangements are governed by a separate agreement between KBFUS and the investment advisor, and subject to approval by the Board of Directors of KBFUS. In order to assure that a selected investment advisor administers the Donor-Advised Fund in a manner consistent with KBFUS' exempt purposes, KBFUS reserves the right under the terms of those separate agreements to terminate the arrangement and replace the investment advisor upon thirty-days' notice. As a result of such an arrangement, KBFUS may wish to entrust the management of the assets of one or more Donor-Advised Funds to a specific investment advisor. In these circumstances, the investment advisor will strictly adhere to the following policy: Each separately managed Fund account shall be owned and titled in the name of “The King Baudouin Foundation United States” (KBFUS), with a reference to the name of the Fund. The investment advisor shall take instructions (both written and verbal) only from authorized employees of KBFUS, and never from the donor of the Fund. The primary goal of the management of the portfolio is capital preservation. The investment advisor will minimize risk by investing the assets in a broad and diversified range of securities. The investment advisor will not borrow money, pledge assets or invest assets where there is a risk of loss of more than the amount invested. The investment advisor will submit a quarterly, consolidated report on the total return of the individually managed portfolio. This report will include a detailed overview of all commissions and fees paid for the management of the portfolio.

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This policy document was adopted by the Board of Directors of the King Baudouin Foundation United States (KBFUS) on November 7, 2006, to supplement KBFUS' Procedures for Operation of Advised Funds, which remain in full force and effect. The Board of Directors reserves the right to add, replace, or modify any aspect of this investment policy at any time and without prior notice.

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