Endowments

The United Board welcomes two types of endowments:

• named endowments for unrestricted purpose, and

• named endowments for restricted (also known as “designated”) purposes.

Restricted and unrestricted named endowments may be established with a minimum contribution of $25,000.  In the event that the donor(s) cannot raise the full amount at one time, the United Board permits the donor(s) to raise the $25,000 over a period of up to two years from the close of the fiscal year in which the first contribution is received.  Donors who wish to contribute less than the minimum $25,000 contribution or those who wish to contribute anonymously, are invited to contribute to the United Board’s pooled unrestricted endowment.

For endowments for restricted purposes, after the close of the fiscal year following the year when the $25,000 threshold is reached, the United Board will disburse to the recipient institution an endowment grant in accordance with the United Board’s Endowment Spending Policy.  A note is included stating the terms of the endowment gift and the donor(s) name. A copy of the United Board’s endowment investment and spending policy is available upon request.

Staff of the United Board will work with the donor(s) to establish terms for the endowment.  Sample terms follow.  These terms ensure that the United Board will be able to disburse the annual distribution in compliance with the United Board’s spending rate policy in the unlikely event (for example) that the named college or institution ceases to exist or if United States law prohibits the United Board from doing business in the country named in the endowment terms.

Once the terms for the endowment are agreed to in writing by the donor(s) and approved by the board of trustees, in order to maintain compliance with IRS regulations regarding tax deductibility of charitable

gifts, the donor(s) may not change or modify the terms of the endowment gift. To be sure, considerable care should be taken when drafting endowment terms to be sure that the donor(s) fully understand and agree with the terms as written.

Proposed terms for the endowment, in accordance with the template below and signed by the donor(s), must accompany the initial gift for the endowment.  If signed terms do not accompany the gift, terms must be received, in writing, no later that one month following receipt of the gift.  Any gifts designated for endowment for which the United Board has not received acceptable terms (i.e. terms in accordance with this policy and the bylaws of the United Board) will be returned to the donor at the close of the fiscal year.

Sample Endowment Terms:

“Voted: to accept with appreciation gifts from [Insert Donor Name(s) Here] in memory of [Insert Honoree Name(s) Here], to establish a permanent United Board endowment fund, The [Insert Honoree Name(s) Here] Scholarship fund for [Insert Department/Subject/Program Name Here] Students at [Insert School/University Name Here] to support tuition scholarships for one or more students majoring in [Insert Department/Subject/Program Name Here] at [Insert School/University Name Here].

“After total contributions to the endowment reach at least $25,000, and based on the United Board’s endowment spending policy, the United Board will disburse an annual endowment grant for these scholarships.  Annual reports on the use of grants from this fund are to be made to the United Board.  In the unlikely event that conditions make it impossible for the United Board to use the income for this purpose, its board of trustees shall, at their sole discretion, designate the annual income from this fund for a similar purpose elsewhere, preferably in the [Insert School/University Country here].”