EFTA00658433.pdf

mu Foundation tor A NEW AMERICAN LIIIIVERSITY ARIZONA STATE UNIVERSITY ATTACHMENT A GIFT ADMINISTRATION TERMS AND CONDITIONS EFTA00658433  ASU FOUNDATION GIFT ADMINISTRATION TERMS AND CONDITIONS This Attachment A has been written in accordance with the 4. Alternate Application of the Fund — In the event that approved policies of the ASU Foundation for A New American it no longer is feasible for the Fund to be used as specified University ("ASU Foundation"), a nonprofit corporation that is in the executed Agreement or any of the selection criteria exempt from taxation under section SOl(c)(3) of the Internal are determined to be unlawful, ASU Foundation will consult Revenue Code and is located in Tempe, Arizona, and sets forth with the ASU Beneficiary and the donor, when practical, to the terms and conditions subject to which ASU Foundation determine how to redirect the Fund in a manner that closely administers gifts ("Terms and Conditions").TheseTerms and honors the donor's original intent. In this event, ASU Foun- Conditions may be amended from time to time and will be dation and the ASU Beneficiary will continue to recognize the made available on the ASU Foundation website: original contribution appropriately. If the program or activity www.asufoundation.org/giftagreements. supported by the Fund is reassigned to another administrator or beneficiary within the University, the Fund also shall be General Terms reassigned to the new administrator or beneficiary. 1. Gift Restriction — ASU Foundation solicits, accepts, 5. Governing Law —TheseTerms and Conditions shall be manages and invests charitable gifts on behalf of Arizona State governed by and interpreted in accordance with the laws of University ("University"). All gifts are irrevocable. Donors the State of Arizona, including conflicts of law provisions. may restrict 95% of any gift for specific purposes; 5% of each Venue shall be held exclusively in the courts of Arizona. gift received is unrestricted for the University's use in advanc- ing its strategic initiatives and operations.The donor receives Endowments and Quasi-Endowments a gift receipt and is acknowledged for the full amount (100%) of the gift. The restricted purpose of the gift ("Fund") is estab- An endowment is a permanent gift held in perpetuity and lished through a formal gift agreement ("Agreement") exe- invested to provide sustainable financial support for the Uni- cuted between the donor and ASU Foundation and governed versity. Similarly, a quasi-endowment is intended to provide by the terms and conditions in this document. The Agreement long-term support for the University. Unlike an endowment, typically identifies a specific college, department or program a quasi-endowment typically is not intended to be held in at the University ("ASU Beneficiary") that administers the perpetuity. Fund in accordance with the Agreement. 1. Investment Policy — ASU Foundation investment policy 2. Donor Recognition —To express appreciation, recognize includes the use of equity funds, which exposes the Fund to the impact of philanthropy and encourage gifts for similar investment market risk. The Fund may be commingled, for purposes, ASU Foundation may publicly recognize donors for investment purposes, with other investment assets of ASU their philanthropic investments. Such recognition may include Foundation but shall at all times be separately accounted for the description, date and amount of the donor's donations. If on ASU Foundation's books and records. The Fund's market the naming of physical spaces is considered for recognition, value ("Market Value") consists of gifts or principal, rein- such naming shall be approved in accordance with Arizona vestments and the net investment return therefrom, which Board of Regents policies; applicable details will be provided includes interest, dividends and unrealized and realized gains in the Agreement. If a donor wishes to remain anonymous, and losses, less investment management fees. the donor shall so indicate in the signed Agreement. ASU Foundation will honor requests for anonymity to the extent 2. Annual Fee —ASU Foundation may charge a fee to the permitted by applicable law, but may be required to disclose Fund to provide for the full and appropriate fiduciary over- the description, date, amount and conditions of anonymous sight of the Fund, including, but not limited to, such expenses donations. as legal, financial, administrative, reporting and development activities that are conducted solely for the benefit of the 3. Financial Management and Investment — All contri- University. The currently authorized annual fee is equal to 1.5 butions to the Fund are accepted, managed and invested by percent of the 12-quarter average market value of the Fund. ASU Foundation in accordance with its policies. EFTA00658434  ASU FOUNDATION GIFT ADMINISTRATION TERMS AND CONDITIONS 3. Threshold —The minimum amount to establish an endow- 7. Unspent Amount Available for Spending — If in a giv- ment is $25,000. Some purposes (e.g., endowed chairs and en year no use or only partial use is made of the Fund Payout, professorships, New American University Scholarships) have the unused amount shall be added to the next fiscal year's use higher minimums. In these cases, the minimum threshold is or returned to the Fund as reinvested earnings, at the discre- identified in the Agreement. If the minimum is not reached tion of the ASU Beneficiary. within five years of the date of the Agreement, ASU Foun- dation, in consultation with the ASU Beneficiary and/or the 8. Reduction of Quasi-Endowment — ASU Foundation donor, may transfer the Fund to another account designated by may establish a quasi-endowment with the express agreement the ASU Beneficiary. that either the ASU Beneficiary or the donor intend for the quasi-endowment to be held for more than five years. If not 4. Gift Value — For endowments, Gift Value consists of a otherwise directed by a donor, and after the five-year period, donor's permanently restricted gifts and any other income or the MU Beneficiary has the option to use a portion of or the reinvestments that are directed by the donor. The Gift Value entire Fund in any fiscal year in accordance with the following and the net investment return therefrom, which includes in- limitations: terest, dividends and unrealized and realized gains and losses, less investment management fees, shall be held or disbursed a. A 30-day written notification to ASU Foundation's Finan- in accordance with the Agreement. Quasi-endowments are cial Services Department is required for any reduction or not permanently restricted by donors and as such have no Gift termination from the Fund in an amount of S500,000 or Value component; for quasi-endowments, threshold determi- more.This notification will allow for orderly disinvestment nations are based on Market Value. of the requested funds. 5. Fund Payout — After the GiftValue of an endowment (or b. A minimum balance of $25,000 is required to remain in Market Value of a quasi-endowment) reaches the minimum the Fund. If this minimum balance is not maintained, then threshold required for the proposed purpose, ASU Foundation any remaining funds may, at the election of ASU Foundation will pay to the ASU Beneficiary an endowment distribution in consultation with the ASU Beneficiary, be transferred ("Fund Payout") for the purposes set forth in the Agreement. into a non-endowed account at ASU Foundation identified The amount available for Fund Payout is defined by ASU by the ASU Beneficiary as being consistent with the donor's Foundation's investment policy. Currently, ASU Foundation original intent. uses a constant-growth spending policy to provide greater predictability while protecting intergenerational growth. Fund 9. Reporting — ASU Foundation will send the donor an an- Payout is increased annually, consistent with the current-year nual report on the Fund's activity. inflation rate, subject to a cap and floor (4 percent and 3 per- cent, respectively) of the 12-quarter average Market Value of the Fund. By ensuring that the Fund Payout is within the cap Inquiries and floor, the endowment will provide a stable and predictable payout for future spending. For new endowments established Any inquiries related to ASU Foundation's acceptance and during a calendar year, the initial payout currently is 3.5 per- management of philanthropic gifts should be directed to the cent of the Gift Value (or funds contributed for quasi-endow- ASU Foundation's chief financial officer or vice president and ments). Fund Payout is available to the MU Beneficiary at the managing director of development. beginning of each fiscal year (July 1). 6. Underwater Payout for Endowed Funds — In the event the endowed Fund's Market Value falls below the Gift Value, the Fund Payout will be continued at the rate as defined by ASU Foundation's investment policy, unless otherwise spec- ified in the Agreement. This may cause some of the Gift Value to be used temporarily for the Fund Payout. Rev. 9/14 EFTA00658435  Foundation forA NEW AMERICAN UNIVERSITY ARIZONA STATE UNIVERSITY •. Box 2260 Tempe, AZ 85280-2260 480-965-3759 asuf.info@asu.edu EFTA00658436