Endowment and Investment Policies
The organization encourages gifts to the endowment, and is prepared to hold and invest these funds for long term health and sustainability.
Customarily, income from the endowment up to 5% per year may be utilized to offset operating expenses.
Any income not drawn for operating purposes will be reinvested.
General Endowment will be managed and recorded as a separate fund, overseen by the Finance Committee of the Board.
Restricted Endowments will be managed and recorded as separate funds, overseen by the Finance Committee of the Board.
Any utilization of principal of the endowment, or of a draw over 5% of income, must be approved by the Board following the recommendation of the Finance Committee.
Donors may offer endowment gifts with restrictions and those will be accepted after approval by the board or its Gift Acceptance Committee. Donors will be asked to
include a stipulation in their restriction that future Boards have the flexibility to use the endowment for other purposes if the original restriction no longer is viable or appropriate.
Unrestricted bequests will be added to the general, unrestricted endowment unless the donor stipulates otherwise through their will or other gift vehicle.
Named endowments may only be established with an initial gift (or combined concurrent gifts) of at least $25,000. Gifts of any amount may be added to a preexisting named fund.
Restricted endowments may not be identified by the donor to benefit a particular individual, but may be devoted to a position or activity.
Investment policy will be developed by the Finance Committee, approved by the Board and and be available to donors upon request.
The Finance Committee will oversee investment of organization funds. Endowment Funds will be managed separate from operating funds If an outside investment firm or manager is retained, the Finance Committee will make a recommendation to the full board on the selection of the firm or manager.
Gift Acceptance Policy: River Arts of Morrisville 7/05
The Board of Trustees of River Arts recognizes the importance of charitable giving to thewell being and future of the organization, and encourages its community, staff, neighbors and other friends to contribute generously to its annual fund, capital campaigns, endowment campaigns, and other purposes. These policies describe the ways River Arts can accept these gifts. In case of any questions not answered by these policies, River Arts will abide by the standards set by CASE. The board president will appoint a standing
Gift Acceptance Committee made up of members the finance committee and others to review any and all gifts that fall within the categories described below.
1. River Arts welcomes gifts of cash, publicly traded bonds and stock, insurance policies,
real and personal property and pledges, as well as deferred gifts such as trusts, annuities,
and bequests. All gifts are accepted according to standards below. Gifts are dated at the
time they leave the donor’s possession.
2. Gifts of cash, securities and paid insurance policies are accepted immediately upon
receipt. River Arts also welcomes deferred gifts such as bequests, trusts, annuities and
life estates; refer to the River Arts Gift Counting Policies to understand when these gifts
can be acknowledged and counted.
3. At the end of each year, or at the close of any special campaign, a list of donors will
be available to the public upon request. Donor requests for anonymity will always be
honored.
4. River Arts will maintain a Legacy Society which acknowledges the generosity of those
who have left a bequest, or communicated their intention to leave a bequest to River Arts;
this implies no financial accounting or tax benefit for revocable gifts. Donor requests for
anonymity will always be honored.
5. Gifts of real estate and other property are accepted provided they can be used to
advance River Arts’ mission or sold by River Arts. The customary procedure will be to
sell these immediately, but River Arts retains the right to postpone sale. The donor may
not stipulate the timing of a sale. Any appraisal and environmental assessments found
necessary will be conducted at the expense of the donor prior to River Arts’ acceptance.
Gifts of property will only be accepted after approval by the River Arts Gift Acceptance
Committee.
6. Gifts for restricted purposes will be accepted when those restrictions are a component
of the budget or of an active campaign. Gifts for other restricted purposes will be
accepted only after the approval of the Gift Acceptance Committee. Gifts restricted for
endowment or another special purpose fund may only be applied to a new named fund if
the initial gift is $25,000 or more. Additions to existing named funds will be accepted in
any amount.
7. Gifts that might require any special action or change in procedures at River Arts, will be considered by the Gift Acceptance Committee and the Finance Committee prior
to acceptance. In general, River Arts will not accept gifts with conditions that require changes in basic practices or programs of River Arts unless those conditions or changes
have been determined to be beneficial to the mission and organization and have been approved by the Board.8. River Arts may occasionally accept gifts with the provision that an endowment or scholarship fund, building, or other property be named in honor of the donor, a member
of the donor’s family, an honored friend the organization, or another individual. Such naming opportunities will be reviewed by the Gift Acceptance Committee and approved
by the Board prior to gift acceptance. The Board will set and approve the appropriate
gift level for these naming opportunities. Funds or buildings or other spaces may
customarily only be named for individuals or families, not for businesses, organizations,
themes, or other entities.
8. River Arts will not directly manage gift annuities, and therefore any such gifts must be made with the understanding that a third party will manage the annuity and make income
payments directly to the donor.
9. Gifts cannot be applied to individual expenses such as residence fees, tuition, room, board or related expenses for personal benefit of a specific individual. Gifts may not be
restricted for any purposes contrary to the values or mission of the organization, or for any purposes that would discriminate against any person or groups by reason of race,
gender, ethnicity, age, sexual orientation, disability or other basis prohibited by law.
10. Most gifts offer some tax advantages to donors, and River Arts urges each donor to seek the most appropriate ways to maximize these advantages. While River Arts is
anxious to discuss gift planning with each donor in so far as it applies to their gift to River Arts, River Arts will not offer financial or estate planning advice on these giving
methods, on gift or financial management, or on other aspects of the donor’s charitable gift planning. Each donor is urged to seek financial counsel. As necessary in negotiating
the terms of a gift, River Arts will also retain counsel for gift management advice.