Suggested Language to Create Various Funds
Unrestricted Named Fund
Unrestricted Named Fund by Will (or Trust)
Field of Interest Fund
Field of Interest Fund by Will (or Trust)
Establishment of a Donor Advised Fund
Permanent Donor Advised Fund by Will (or Trust)
Temporary Donor Advised Fund by Will (or Trust)
Restricted Purpose Fund
Restricted Purpose Fund by Will (or Trust)
Endowed Scholarship Fund
Scholarship Fund by Will(or Trust)
Giving Guide
SUGGESTED LANGUAGE FOR VARIOUS FUNDS
Unrestricted Named Fund
This agreement, made this____day of___________________,__________, between (hereinafter referred to as the "Donor") and the Community Foundation for Monterey County, a California non-profit corporation ("the Foundation") is as follows:
The Donor desires to create a Fund with the property specified for the public educational and charitable purposes hereinafter set forth.
The Donor hereby assigns, conveys, transfers and delivers to the Community Foundation the property set forth in the attached schedule together with other property acceptable to the Community Foundation which it may hereafter at any time hold or acquire hereunder (hereinafter referred to as the 'Fund') as part of the Community Foundation, subject to the terms and conditions herein set forth:
FIRST: The Fund hereby created shall be known as the "___________________________" Fund.
SECOND: The Community Foundation shall hold, manage, invest and reinvest the Fund, shall collect the income and shall pay and disburse the annual payout for public educational and charitable uses and purposes, in accordance with the policies of the Community Foundation in effect from time to time.
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Unrestricted Named Fund by Will (or Trust)
I [settlor] give[s] and devise[s]_________________________________________________(describe gift) to the Community Foundation for Monterey County, a California non-profit corporation ("the Foundation"), to hold, manage, invest and reinvest the same, to collect the income and to pay and disburse the annual payout for public educational and charitable purposes, in accordance with the policies of the Community Foundation in effect from time to time. This gift is to be added to the General Endowment of the Community Foundation for Monterey County and shall be known as the "____________________________________" Fund.
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Field of Interest Fund
Mr. Todd Lueders
President/CEO
Community Foundation for Monterey County
99 Pacific Street #155A
Monterey, CA 93940
Dear Mr. Lueders:
With this letter, I hereby transfer, convey and pay over to the Community Foundation for Monterey County ("the Foundation") for its public charitable, educational, and scientific uses and purposes the property listed on the attached schedule. This property constitutes an irrevocable gift to the Foundation upon your acceptance of the gift and the following terms and conditions:
1. A fund shall be established on the books of the Foundation and be known as the__________________Fund ("the Fund").
2. The Fund shall include the property delivered with this letter, any other property which later may be transferred to the Foundation by the Donor(s) or any other source for inclusion in the Fund and accepted by the Foundation for inclusion in the Fund, and all undistributed income from all such property.
3. 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.
4. The Fund shall be used only for the charitable purposes of the Foundation as set forth in its organizational and governing documents. The Fund shall be administered as a Field of Interest Endowment Fund.
5. Distributions from the Fund of the annual payout and up to____% of the original Fund principal plus up to____% of any later contributions shall be made at such times and in such amounts as the Foundation shall determine. I/we desire that grants go to organizations that: (state purpose)
6. It is understood that the Fund may be charged regularly for a proper allocation of direct and indirect expenses attributable to its creation and maintenance.
7. Neither the Donor(s) nor any other person may receive any tangible benefit or privilege in return for a distribution from the Fund.
8. It is understood that no distributions will be used to discharge or satisfy a legally enforceable pledge or obligation of any person, including the Donor(s).
9. It is understood that the Fund shall be a component part of the Foundation and not a separate trust, and that nothing in this Agreement shall affect the status of the Foundation as an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, 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 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. Reference 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.
Please indicate below your acceptance of the terms and conditions noted above.
Sincerely,
Donor signature_______________________________________________
Donor signature_______________________________________________
Accepted this_______day of___________________,_________. Receipt of the above-described property on this date is acknowledged.
By _______________________________________________
President/CEO, Community Foundation for Monterey County
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Field of Interest Fund by Will (or Trust)
I [settlor] hereby give[s] and devise[s]__________________________[describe gift] to the Community Foundation for Monterey County ("the Foundation") for its public charitable, educational, and scientific uses and purposes upon the following terms and conditions:
1. A fund shall be established on the books of the Foundation and be known as the Fund ("the Fund").
2. The Fund shall include not only [describe gift] but also any other property which later may be transferred to the Foundation by any other source for inclusion in the Fund and accepted by the Foundation for inclusion in the Fund, and all undistributed income from all such property.
3. 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.
4. The Fund shall be used only for the charitable purposes of the Foundation as set forth in its organizational and governing documents. The Fund shall be administered as a Field of Interest Endowment Fund.
5. Distributions from the Fund of the annual payout and up to____% of the original Fund principal plus up to____% of any later contributions shall be made at such times and in such amounts as the Foundation shall determine. I [settlor] desire[s] that grants from the Fund go to organizations that: (state purpose)
6. The Fund may be charged regularly for a proper allocation of direct and indirect expenses attributable to its creation and maintenance.
7. No person may receive any tangible benefit or privilege in return for a distribution from the Fund.
8. No distributions will be used to discharge or satisfy a legally enforceable pledge or obligation of any person.
9. The Fund shall be a component part of the Foundation and not a separate trust, and nothing in this Agreement shall affect the status of the Foundation as an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and as an organization which is not a private foundation within the meaning of Section 509(a) of the Code. The Foundation is authorized to amend the terms of this gift and devise to conform to the provisions of any applicable law or government regulation in order to carry out the purposes of this Fund. Reference 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.
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Establishment of a Donor Advised Fund
Date _____________________
I am / we are hereby delivering an irrevocable contribution to the Community Foundation for Monterey County, a California non-profit corporation (“the Foundation”). The contribution consists of the following items:
______ Cash/check in the amount of $_____________
______ Cash charged to Credit Card
Credit Card Type and # Expiration Date
______ Property, as described in the attached Schedule
______ Stock, as described in the attached Schedule
______ Other, as described in the attached Schedule
1. Upon the Foundation’s acceptance of the gift and the following terms and conditions, a fund shall be established on the books of the Foundation and be known as the
________________________________________________________________________ Fund (“the Fund”).
This will be a:
______ Permanent Fund (Endowment)
______ Temporary Fund (Fully distributable)
______ Combination of both Funds; if so,
% of the contributions will be endowed
% of the contributions will be distributable
2. The Fund shall include the net proceeds from the contribution delivered with this letter, the net proceeds from any other property which later may be transferred to the Foundation by the Donor(s) or any other source for inclusion in the Fund and accepted by the Foundation for inclusion in the Fund, and all undistributed income from all such property.
3. 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.
4. The Fund will be managed according to the following options:
If a Temporary Fund:
_______ Held in cash
_______ Invested in Money Market Accounts
_______ Invested in a diversified pool, as established in the Foundation’s investment policies (See Pooled Fund Investments Sheet attached)
If a Permanent Fund:
_______ Invested in Money Market Accounts
_______ Invested in a diversified pool, as established in the Foundation’s investment policies (See Pooled Fund Investments Sheet attached)
5. The Fund shall be used only for the charitable purposes of the Foundation as set forth in its organizational and governing documents.
6. 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.
7. Donor(s) may from time to time submit to the Foundation recommendations in writing with respect to distributions, which recommendations shall be solely advisory. The Foundation shall consider and evaluate all such recommendations, and they will normally be approved if the grantees are within the broad program areas supported by the Foundation.
(A) For Permanent Funds, such distributions may be either (circle one)
(a) the net income or the Board-established payout rate of the Fund
- OR
(b) the net income of the Fund or the Board-established payout for the Fund and up to ______% of the original Fund principal plus up to _____% of any later contributions, as adjusted periodically to reflect the net appreciation and/or depreciation to the original Fund principal.
(B) The Total Fund Balance of Temporary Funds, less fees, will be available for distribution at all times.
8. The authorized Advisors of this Fund will be:
_______________________________________
_______________________________________
9. If more than one Donor is an Advisor of the Fund, the Donors, (circle one)
(A) will act jointly
- OR
(B) may act separately
10. The Fund shall be administered under the Guidelines for the Administration of Permanent and Temporary Donor Advised Funds approved by the Board of Directors, including any amendments. It is understood that the Fund may be charged regularly for a proper allocation of direct and indirect expenses attributable to its creation and maintenance.
11. It is understood that the Fund will operate as a Donor Advised Fund only so long as __________________________and/or_________________________________________ shall be willing and able to serve in an advisory capacity to the Fund.
12. If established as a Permanent Donor Advised Fund, it is understood that when the period for donor advice terminates, either by death or otherwise, the Fund will continue as a named fund of the Foundation in perpetuity, unless the Donor(s) or the designees of the Donor(s) have previously agreed with the Foundation on the distribution of the principal of the Fund. The income from the Fund will be pooled with the income from the Foundation’s unrestricted endowment for general grantmaking by the Board of Directors.
13. If established as a Temporary Donor Advised Fund, it is understood that this Fund will operate for up to _______ months, and that this period may be renewed with further gifts to the Fund.
14. Neither the Donor(s) nor any other person may receive any tangible benefit or privilege in return for a distribution from the Fund.
15. It is understood that no distributions will be used to discharge or satisfy a legally enforceable pledge or obligation of any person, including the Donor(s).
16. It is understood that the Fund shall be a component part of the Foundation and not a separate trust, and that nothing in this Agreement shall affect the status of the Foundation as an organization described in Section 501(c) (3) of the Internal Revenue Code of 1986, as amended, 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 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. Reference 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.
Please sign below to indicate your acceptance of the terms and conditions noted above and defined in the Foundation’s Guidelines for the Administration of Permanent and Temporary Donor Advised Funds and Fee Schedule.
Donor signature ____________________________________________________________
Donor signature ____________________________________________________________
Accepted this ______ day of _______________________, _________. Receipt of the above-described property on this date is acknowledged.
By _______________________________________________________________________
President/CEO, Community Foundation for Monterey County
ATTACHMENTS
- Guidelines for the Administration of Permanent Donor - Advised Funds of the Community Foundation for Monterey County
- Guidelines for the Administration of Temporary Donor - Advised Funds of the Community Foundation for Monterey County
- Schedule of Fees Assessed on Permanent and Temporary Donor - Advised Funds of the Community Foundation for Monterey County.
- Pooled Fund Investments Sheet
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Permanent Donor Advised Fund by Will (or Trust)
I [settlor] give[s] and devise[s]______________[designate gift] to the Community Foundation for Monterey County, a California non-profit corporation ("the Foundation") upon the following terms and conditions:
1. A fund shall be established on the books of the Foundation and be known as the____________Fund ("the Fund").
2. The Fund shall not only include the [designate gifts], but also any other property which later may be transferred to the Foundation by any other source for inclusion in the Fund and accepted by the Foundation for inclusion in the Fund, and all undistributed income from all such property.
3. 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.
4. The Fund shall be used only for the charitable purposes of the Foundation as set forth in its organizational and governing documents.
5. Distributions from the Fund of (1) the net income or the Board-established payout of the Fund or (2) the net income of the Fund or the Board-established payout of the Fund and up to____% of the original Fund principal plus up to____% of any later contributions, as adjusted periodically to reflect the net appreciation and/or depreciation to the original Fund principal and distribution of principal, shall be made at such times, in such amounts, in such ways and for such purposes as the Foundation shall determine. [designate donor advisor(s)] may from time to time submit to the Foundation recommendations in writing with respect to distributions, which recommendations shall be solely advisory.
6. The Fund shall be administered under the Guidelines for Administration of Permanent Donor Advised Funds approved by the Foundation, including any amendments. The Fund may be charged regularly for a proper allocation of direct and indirect expenses attributable to its creation and maintenance.
7. The Fund will operate as a Donor Advised Fund only so long as shall be willing and able to serve in an advisory capacity to the Fund.
8. No person may receive any tangible benefit or privilege in return for a distribution from the Fund.
9. No distributions will be used to discharge or satisfy a legally enforceable pledge or obligation of any person.
10. When the period for donor advice terminates, either by death or otherwise, the Fund will continue as a named fund of the Foundation in perpetuity. The Fund will be pooled with the Foundation's unrestricted endowment for general grantmaking by the Board of Directors.
11. The Fund shall be a component part of the Foundation and not a separate trust, and that nothing in this Agreement shall affect the status of the Foundation as an organization described in Section 501(c)3 of the Internal Revenue Code of 1986, as amended, and as an organization which is not a private foundation within the meaning of Section 509(a) of the Code. The Foundation is authorized to amend the terms of this gift and devise to conform to the provisions of any applicable law or government regulation in order to carry out the purposes of this Fund. Reference 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.
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Temporary Donor Advised Fund by Will (or Trust)
I [settlor/testator] give[s] and devise[s]______________________designate gift] to the Community Foundation for Monterey County, a California non-profit corporation ("the Foundation") upon the following terms and conditions:
1. A fund shall be established on the books of the Foundation and be known as the Fund ("the Fund").
2. The Fund shall not only include the [designate gifts], but also any other property which later may be transferred to the Foundation by any other source for inclusion in the Fund and accepted by the Foundation for inclusion in the Fund, and all undistributed income from all such property.
3. 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.
4. The Fund shall be used only for the charitable purposes of the Foundation as set forth in its organizational and governing documents.
5. Distributions from the Fund are intended to be paid out within a 24 month period or [specify approximate time duration]. [designate donor advisor(s)] may from time to time submit to the Foundation recommendations in writing with respect to distributions, which recommendations shall be solely advisory.
6. The Fund shall be administered under the Guidelines for Administration of Temporary Donor Advised Funds approved by the Foundation, including any amendments. The Fund may be charged regularly for a proper allocation of direct and indirect expenses attributable to its creation and maintenance.
7. The Fund will operate as a Temporary Donor Advised Fund only so long as shall be willing and able to serve in an advisory capacity to the Fund.
8. No person may receive any tangible benefit or privilege in return for a distribution from the Fund.
9. No distributions will be used to discharge or satisfy a legally enforceable pledge or obligation of any person.
10. When the period for donor advice terminates, either by death or otherwise, the balance remaining in the Fund, if any, will continue as a named fund of the Foundation in perpetuity. The Fund will be pooled with the Foundation's unrestricted endowment for general grantmaking by the Board of Directors.
11. The Fund shall be a component part of the Foundation and not a separate trust, and nothing in this gift shall affect the status of the Foundation as an organization described in Section 501(c)3 of the Internal Revenue Code of 1986, as amended, and as an organization which is not a private foundation within the meaning of Section 509(a) of the Code. The Foundation is authorized to amend the terms of this gift and devise to conform to the provisions of any applicable law or government regulation in order to carry out the purposes of this Fund. Reference 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.
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Restricted Purpose Fund
Mr. Todd Lueders
President/CEO
Community Foundation for Monterey County
99 Pacific Street #155A
Monterey, CA 93940
Dear Mr. Lueders:
Enclosed herewith is a check in the amount of $_______as an irrevocable gift to the Community Foundation for Monterey County ("the Foundation") to establish a permanent endowment fund for the purpose of [state exempt purpose of the organization, for example as stated in the bylaws or articles of incorporation]_______________. We understand that the Fund will be administered as an asset of the Foundation subject to its By-Laws and Articles of Incorporation and on the following terms and conditions:
1. As long as the organization is operating to carry out the purposes stated above, the Foundation shall, after deducting administrative expenses, distribute either the net income or the annual payout [annually/ quarterly (for larger funds only)] to the [name of organization] (except that the [name of organization] may elect to reinvest all or part of the net income in any year back into the principal of the Fund). (optional)
2. Gifts may be added to the Fund at any time by the [name of organization] or other donors to assure the growth of the Fund as a permanent endowment for the purpose stated above.
3. The Board of Directors of the Community Foundation for Monterey County shall have full authority and discretion as to the investment and reinvestment of the assets of the Fund. If the value of the Fund¹s investments are ever less than or equal to that of the original gifts, the Fund will pay out on a net income only basis, provided that amount is less than the stated payout rate, until the Fund recovers its value.
4. In the event of the dissolution of [name of organization] or in the event that it shall no longer be an organization described in section 170(c) of the Internal Revenue Code of 1954, as amended, the Foundation shall thereafter continue to hold the Fund and shall distribute the annual payout therefrom to such organizations as in the opinion of the Board of Directors of the Foundation most nearly serve the purposes and objectives stated above.
5. In the event of the dissolution of the Foundation, the funds constituting the Fund shall be distributed to the [name of organization] if it shall then be in existence and shall then be an organization described in section 170(c) of the Internal Revenue Code of 1954, as amended, or if it shall not then be in existence or shall not be an organization so described, then such funds shall be distributed to such organizations so described as in the opinion of the Board of Directors of the Foundation most nearly serve the purposes and objectives of the [name of organization].
It is understood and agreed that all funds held in the Fund shall be subject to the By-Laws and Articles of Incorporation of the Foundation, including the power contained therein for the Board of Directors of the Foundation to modify any restrictions or conditions on the distribution of funds for any specified charitable purpose or to specified organizations, if in their sole judgment (without the approval of any trustee, custodian or agent), such restriction becomes, in effect, unnecessary, incapable of fulfillment, or inconsistent with the charitable needs of the area served by the Foundation.
Sincerely,
Donor(s) or Agency Executive Director
Acceptance Signatures, etc.
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Restricted Purpose Fund by Will (or Trust)
I [settlor] give[s] and devise[s] $_________to the Community Foundation for Monterey County ("the Foundation") to establish a permanent endowment fund for the purpose of [state exempt purpose of the organization, for example as stated in the bylaws or articles of incorporation] __________________________________upon the following terms and conditions:
1. As long as the organization is operating to carry out the purposes stated above, the Foundation shall, after deducting administrative expenses, distribute either the net income or the annual payout [annually/ quarterly (for larger funds only)] to the [name of organization] (except that the [name of organization] may elect to reinvest all or part of the net income in any year back into the principal of the Fund). (optional)
2. Gifts may be added to the Fund at any time by the [name of organization] or other donors to assure the growth of the Fund as a permanent endowment for the purpose stated above.
3. The Board of Directors of the Community Foundation for Monterey County shall have full authority and discretion as to the investment and reinvestment of the assets of the Fund. If the value of the Fund's investments are ever less than or equal to that of the original gifts, the Fund will pay out on a net income only basis, provided that amount is less than the stated payout rate, until the Fund recovers its value.
4. In the event of the dissolution of [name of organization] or in the event that it shall no longer be an organization described in section 170(c) of the Internal Revenue Code of 1954, as amended, the Foundation shall thereafter continue to hold the Fund and shall distribute the annual payout therefrom to such organizations as in the opinion of the Board of Directors of the Foundation most nearly serve the purposes and objectives stated above.
5. In the event of the dissolution of the Foundation, the funds constituting the Fund shall be distributed to the [name of organization] if it shall then be in existence and shall then be an organization described in section 170(c) of the Internal Revenue Code of 1954, as amended, or if it shall not then be in existence or shall not be an organization so described, then such funds shall be distributed to such organizations so described as in the opinion of the Board of Directors of the Foundation most nearly serve the purposes and objectives of the [name of organization].
6. All funds held in the Fund shall be subject to the By-Laws and Articles of Incorporation of the Foundation, including the power contained therein for the Board of Directors of the Foundation to modify any restrictions or conditions on the distribution of funds for any specified charitable purpose or to specified organizations, if in their sole judgment (without the approval of any trustee, custodian or agent), such restriction becomes, in effect, unnecessary, incapable of fulfillment, or inconsistent with the charitable needs of the area served by the Foundation.
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Endowed Scholarship Fund
Mr. Todd Lueders, President/CEO
Community Foundation for Monterey County
99 Pacific Street #155-A
Monterey, CA 93940
Dear Mr. Lueders:
Today I have made a gift of $__________as an irrevocable gift to the Community Foundation for Monterey County ("the Foundation") to establish a permanent scholarship endowment fund for the purpose of awarding annual scholarships at [NAME OF SCHOOL]__________________________. The fund is to be named the [NAME OF FUND]_________________. I understand that the Fund will be administered as an asset of the Foundation subject to its By-Laws and Articles of Incorporation and on the following terms and conditions:
1. As long as [SCHOOL] _________________is operating to carry out recognized educational charitable purposes, the Foundation shall, after deducting administrative expenses, distribute the annual scholarship to the schools where the scholarship winners have registered.
2. The Fund shall distribute the annual board-approved payout or net income each year in accordance with the ELIGIBILITY CRITERIA (sample wording could be: for a scholarship for a boy and a girl who are graduating from SCHOOL and who are bound for either college or trade school.) The scholarship winners should be chosen based on their academic and extra-curricular achievements in high school and their demonstrated financial need. The winners shall be chosen by a committee made up of the COMMITTEE DETAILS. The Community Foundation must be involved in developing the scholarship criteria and committee details.
3. Gifts may be added to the Fund at any time by donors to assure the growth of the Fund as a permanent endowment for the purpose stated above.
4. The Board of Directors of the Community Foundation for Monterey County shall have full authority and discretion as to the investment and reinvestment of the assets of the Fund. If the value of the Fund's investments are ever less than or equal to that of the original gifts, the Fund will pay out on a net income only basis, provided that amount is less than the stated payout rate, until the Fund recovers its value.
5. In the event of the dissolution of SCHOOL or in the event that it shall no longer be an organization described in section 170(c) of the Internal Revenue Code of 1954, as amended, the Foundation shall thereafter continue to hold the Fund and shall distribute the income therefrom to such organizations as in the opinion of the Board of Directors of the Foundation most nearly serve the purposes and objectives stated above.
6. In the event of the dissolution of the Foundation, the funds constituting the Fund shall be distributed to the SCHOOL if it shall then be in existence and shall then be an organization described in section 170(c) of the Internal Revenue Code of 1954, as amended. If the SCHOOL shall not then be in existence or shall not be an organization so described, then such funds shall be distributed to such organizations so described as in the opinion of the Board of Directors of the Foundation most nearly serve the purposes and objectives of the [name of SCHOOL].
7. It is understood and agreed that all funds held in the Fund shall be subject to the By-Laws and Articles of Incorporation of the Foundation, including the power contained therein for the Board of Directors of the Foundation to modify any restrictions or conditions on the distribution of funds for any specified charitable purpose or to specified organizations, if in their sole judgment (without the approval of any trustee, custodian or agent), such restriction becomes, in effect, unnecessary, incapable of fulfillment, or inconsistent with the charitable needs of the area served by the Foundation.
Sincerely,
Donor Signature___________________________________________Date______________________________
Accepted this_____day of_______________,_________. Receipt of the above-described property on this date is acknowledged.
By_________________________________________________________
President/CEO, Community Foundation for Monterey County
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Scholarship Fund by Will (or Trust)
I [settlor] give[s] and devise[s] $__________________________to the Community Foundation for Monterey County ("the Foundation") to establish a fund for the purpose of awarding a scholarship [state details of scholarship]________________________________________________________. The Fund will be administered as an asset of the Foundation subject to its By-Laws and Articles of Incorporation and to the following terms and conditions:
1. The name of the Fund shall be the_______________________________Fund.
2. The Fund shall distribute the annual board-approved payout or net income each year in accordance with the following criteria {sample wording could be: for a scholarship for a boy and a girl who are graduating from SCHOOL and who are bound for either college or trade school.) The scholarship winners should be chosen based on their academic and extra-curricular achievements in high school and their demonstrated financial need. The Community Foundation must be involved in developing the scholarship criteria.
3. The Foundation shall, after deducting administrative expenses, distribute the annual scholarship to the schools where the scholarship winners have registered.
4. Gifts may be added to the Fund at any time by donors to assure the growth of the Fund as a permanent endowment for the purpose stated above.
5. The Board of Directors of the Community Foundation for Monterey County shall have full authority and discretion as to the investment and reinvestment of the assets of the Fund. If the value of the Fund's investments are ever less than or equal to that of the original gifts, the Fund will pay out on a net income only basis, provided that amount is less than the stated payout rate, until the Fund recovers its value.
6. In the event of the dissolution of SCHOOL or in the event that it shall no longer be an organization described in section 170(c) of the Internal Revenue Code of 1954, as amended, the Foundation shall thereafter continue to hold the Fund and shall distribute the income therefrom to such organizations as in the opinion of the Board of Directors of the Foundation most nearly serve the purposes and objectives stated above.
7. In the event of the dissolution of the Foundation, the funds constituting the Fund shall be distributed to the SCHOOL if it shall then be in existence and shall then be an organization described in section 170(c) of the Internal Revenue Code of 1954, as amended. If the SCHOOL shall not then be in existence or shall not be an organization so described, then such funds shall be distributed to such organizations so described as in the opinion of the Board of Directors of the Foundation most nearly serve the purposes and objectives of the [name of SCHOOL].
8. It is understood and agreed that all funds held in the Fund shall be subject to the By-Laws and Articles of Incorporation of the Foundation, including the power contained therein for the Board of Directors of the Foundation to modify any restrictions or conditions on the distribution of funds for any specified charitable purpose or to specified organizations, if in their sole judgment (without the approval of any trustee, custodian or agent), such restriction becomes, in effect, unnecessary, incapable of fulfillment, or inconsistent with the charitable needs of the area served by the Foundation.
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