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Nonprofit Corporation Endowment Fund

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Nonprofit Corporation Endowment Fund Powered By Docstoc
					                                                                                   Quasi-Endowment 9/2006


                         AGREEMENT TO ESTABLISH THE
       _____________________________________________________________ FUND


       THIS AGREEMENT, made and entered into this _______day of _________________,
200__, by and between ________________________________________________________,
hereinafter known (whether singular or more than one) as the Donor/Settlor, and the
UNIVERSITY OF WISCONSIN-LA CROSSE FOUNDATION, INC., hereinafter known as
the Foundation, establishes within the Foundation THE _________________________________
_____________________________________________FUND, hereinafter known as the Fund.


       WHEREAS, the Donor/Settlor desires to have established in the Foundation a quasi-
endowment fund for the purpose of _________________________________________________
__________________________________________________________________________; and
       WHEREAS, the Foundation is a nonprofit Wisconsin corporation, exempt from taxation
under Internal Revenue Code, hereinafter known as the Code, section 501(c)(3), a public charity
described in section 170(b)(1)(A)(iv) of the Code, and accordingly an appropriate institution
within which to establish such a charitable fund; and
       WHEREAS, a minimum contribution of $25,000 is required to establish a quasi-
endowment fund within the Foundation; provided, however, that the Foundation may agree to
establish a quasi-endowment fund with a smaller initial contribution if the Donor/Settlor is
committed to building the fund to at least $25,000 within such reasonable amount time as shall
be agreed upon by the parties; and
       WHEREAS, the Foundation is willing and able to create such a fund, subject to the terms
and conditions hereof;
       NOW THEREFORE, the parties agree as follows:


       1.      FUNDING. Donor/Settlor hereby adopts the Funding Plan described in the
attached Exhibit A to establish in the Foundation this quasi-endowment fund. Subject to the
right of the Foundation to reject any particular gift, the Foundation shall receive irrevocable gifts
of property and other receipts acceptable to the Foundation from time to time from
Donor/Settlor, or from any other sources, to be added to the Fund, all subject to the provisions
hereof. All gifts, grants, bequests, devises and other receipts into this Fund shall be irrevocable
once accepted by the Foundation.
        2.      HISTORIC DOLLAR VALUE. Pursuant to Section 112.10 of the Wisconsin
Statutes, Donor/Settlor and Foundation agree that the "historic dollar value" of this Fund shall be
fixed at $25,000 such that all additions of whatever nature to the Fund over and about said
historic dollar value may, subject to the discretion, policies and procedures of the Foundation, be
used to fund distributions or awards supporting the purposes of the Fund.
        3.      PURPOSE. The purpose or purposes of the Fund, as well as criteria and process
for distributions there from, shall be as set forth in the attached Exhibit B.
        4.      DISTRIBUTION. The annual earnings allocable to the Fund, net of the fees and
expenses set forth in paragraph 11, and principal (as hereby expressly permitted by this
Agreement and expressed through the determination of the amount or amounts of distributions or
by separate gift instruments) may be committed, granted, or expended only in such amount or
amount, and at such time or times, and with such frequency as determined by Foundation policy
and only for purposes described in Code section 170(c)(1) or (2)(B); provided, however, that
such purposes are consistent with the exempt status of the Foundation and the purpose or
purposes, as well as the criteria for distributions, as set forth herein above. If any gifts to the
Foundation for the purposes of the Fund are received and accepted subject to a donor’s
conditions or restrictions as to the use of the gift or income and principal there from, said
conditions or restrictions will be honored, subject, however, to the authority of the Foundation’s
Board to vary the terms of any gift, if continued adherence to any condition or restriction is in
the judgment of the Foundation’s Board unnecessary, incapable of fulfillment, or inconsistent
with the charitable or other exempt purposes of the Foundation, or the charitable needs of the
greater community served by the Foundation. No distribution shall be made from the Fund to
any individual or entity if such distribution will, in the judgment of the Foundation, endanger the
Foundation’s Code section 501(c)(3) status.
        5.      ADMINISTRATIVE PROVISIONS. Notwithstanding anything herein to the
contrary, the Foundation shall hold the Fund, and all contributions to the Fund, subject to the
provisions of applicable Wisconsin law and the Foundation’s Articles of Incorporation, Bylaws
and other policies consistent therewith. The Board shall direct or monitor the distribution of the
Fund to ensure it is used exclusively for charitable or other exempt purposes within the meaning
of Code section 170(c)(1) or (2)(B), and shall have all powers of modification and removal
specified in United States Treasury Regulations Section 1.170A-9(e)(11)(v)(B). The Board
agrees to provide the Donor/Settlor a copy of an Annual Fund Report and, upon request, a copy
of the annual examination of the finances of the Foundation as reported upon by independent
certified public accountants.
       6.      CONDITIONS FOR ACCEPTANCE OF FUNDS.
               The Donor/Settlor agrees and acknowledges that the establishment of the Fund
herein created is made in recognition of, and subject to, the terms and conditions of the Articles
of Incorporation, Bylaws and other policies consistent therewith of the Foundation, as from time
to time amended, and that the Fund shall at all times be subject to such terms and conditions,
including, but not by way of limitation, provisions for presumption of donors’ intent, variance
from donors’ direction, and amendments.
               Grants are made from each fund established within the UW-L Foundation in
accordance with the instructions given to the Foundation from Donor/Settlor when establishing
the fund. The Foundation generally permits a donor to impose a variety of restrictions or
guidelines on a fund and these are to be set forth on Exhibit B of the fund agreement. However,
it must be understood that by law a gift to charity must be “complete” to qualify as a charitable
contribution for tax purposes. Therefore, the Foundation must have full legal ownership of the
Fund and, ultimately, control over all distributions. If this were not the case and a donor retained
too much control, then the gift may be deemed by the IRS as not complete and not qualified as a
charitable contribution for tax purposes.
       7.      CONTINUITY OF THE FUND. The Fund shall continue so long as adequate
assets are available in the Fund and the purposes in the Fund can be served by its continuation.
Should the Foundation, in its sole discretion, determine for the reasons herein above stated to
terminate the Fund, the Foundation shall devote any remaining assets in the Fund exclusively for
charitable or other exempt purposes that are within the scope of the charitable or other exempt
purposes of the Foundation and most nearly approximate, in the good faith opinion of the Board,
the original purpose of the Fund.
       8.      NOT A SEPARATE TRUST. The Fund shall be a component part and account
of and within the Foundation. All money and property in the Fund shall be managed as an
account (or fund) within the endowment investment portfolio (Endowment) of the Foundation
and not segregated as trust property of a separate trust. That for purposes of determining the
share of the Foundation’s Endowment earnings allocable to the Fund, the interest of the Fund in
the Endowment of the Foundation shall be a percentage determined by dividing the then balance
of the Fund by the then value of the total assets of the Foundation Endowment, such percentage
interest being subject to adjustment at the time of each addition to, or reduction of, the assets of
the Fund and the Foundation Endowment.
       9.      ACCOUNTING. The receipts and disbursements of this Fund shall be accounted
for separately within the Foundation’s fund accounting system and an Annual Fund Report
issued each year.
       10.     INVESTMENT OF FUNDS. 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 Fund and the power to commingle the assets of
the Fund with those of other funds for investment purposes.
       11.     COSTS OF THE FUND. It is understood and agreed that the Fund shall share a
fair portion of the total investment and administrative costs of the Foundation. Those costs
charged quarterly against the Fund shall be determined in accordance with the then current fee
schedule identified by the Foundation as applicable to funds of this type. Any costs to the
Foundation in accepting, transferring or managing property donated to the Foundation for the
Fund shall also be paid from the Fund.
       12.     AMENDMENTS. The terms of the Agreement regarding the administration of
the Fund shall continue until such time as the terms of this Agreement are modified, waived, or
terminated as set forth herein or by further signed agreement between the Donor/Settlor and the
Foundation, or by their respective heirs, successors or assigns.
       13.     COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.
       IN WITNESS WHEREOF, the Donor/Settlor has executed this Agreement and the
Foundation has caused this Agreement to be executed by a duly authorized officer, all as of the
day and year first above written.




UW-L FOUNDATION, INC.                               DONOR/SETTLOR
                                                    Exhibit A

                              AGREEMENT TO ESTABLISH THE
             ___________________________________________________________ FUND

                                             FUNDING PLAN

It is the intent of the Donor/Settlor that the funding called for in this Agreement shall be provided as
follows:

(1)     Initial gift or gifts concurrent with the execution hereof:



(2)     A pledge or pledges for additional funding:



(3)     Subsequent gift, gifts or other receipts:



(3)     Planned or deferred gift or gifts:




If this Fund requires a minimum amount to be established, it is hereby expressed that it is the
Donor’s/Settlor’s intent to have said funding complete within ______ years of the date hereof and that the
Foundation approves and agrees with this goal and funding plan; provided, however, that should this
funding plan fail, the Foundation, in its sole discretion, may continue, merge, amend or terminate this
Fund in any way consistent with the purposes of the Foundation and as close or proximate as possible to
the original intent and purposes of the Fund.


Dated this ______ day of _________________, 200__, at La Crosse, Wisconsin.


UW-LA CROSSE FOUNDATION, INC.                               DONOR/SETTLOR


________________________________                            __________________________


                                                                                    ____________
                                                                                                    Form #1
                                            Exhibit B
                                AGREEMENT TO ESTABLISH THE
               ___________________________________________________________ FUND

         The purpose of this Fund is to provide scholarships to recipients who meet the criteria set forth
below.
         The award selection process for this Fund will be administered, subject to the terms of
this Agreement and Foundation policy, by the UW-L Foundation Scholarship Committee,
hereinafter known as the Committee, which may in its operation and within its discretion consult
with or delegate to such other persons or committees as deemed appropriate and proper within
Foundation policy and the intent of the Fund.
         The recipient must meet the following criteria:

         (1)     Recipient must be enrolled full time at UW-La Crosse with a major in _________;

        (2)       Recipient must be in good academic standing with above average grade point average;
(specify gpa, if required)

         (3)     Recipient may be a freshman, sophomore, junior or senior; (specify restrictions, if any)

         (4)     Financial need should be considered; (specify if desired)

         (5)     At least one award should be made annually; (specify, if restricted)

       (6)     The amount of each annual award shall be in such amount as determined by the
committee but shall be consistent with the amount available and not less than $_____, if possible.

         (7)     Other restrictions: ____________________________________________

         The selection committee reserves the right to renew the scholarship to a qualified student.

       It is understood that the scholarship will be paid out in two equal installments for each of the
semesters of a standard academic year.

         Dated this _____ day of _____________, 200__, at La Crosse, Wisconsin.

UW-LA CROSSE FOUNDATION, INC.                              DONOR/SETTLOR
                                                                                               Form #2
                                     Exhibit B
                         AGREEMENT TO ESTABLISH THE
        ___________________________________________________________ FUND


       This is a multiple and flexible purpose Fund created to provide support for




       The award selection process for this Fund will be administered, subject to the terms of
this Agreement and Foundation policy, by the UW-L Grants & Awards Committee, hereinafter
known as the Committee, which may in its operation and within its discretion consult with or
delegate to such other persons or committees as deemed appropriate and proper within
Foundation policy and the intent of the Fund.
       Awards shall be made by the Committee on the basis of merit for any of the purposes
listed below:
       (1)      Faculty development and teaching enhancement for such things as, but not limited
to, seminars, conferences, sabbaticals, research and related travel.
       (2)      Academic program promotion and/or enrichment for such things as, but not
limited to, guest speakers and lecturers, including a series thereof, field trips, equipment and
related expenses.
       (3)      Student assistantships, scholarships or loans. (Criteria may be specified.)
       (4)      Other purposes:


       Dated this _____ day of _____________, 200__, at La Crosse, Wisconsin.


UW-LA CROSSE FOUNDATION, INC.                         DONOR/SETTLOR


________________________________                      ______________________________

				
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Description: Nonprofit Corporation Endowment Fund document sample