Policy/Purpose Statement

Approved by the Board

January 14, 2004

Policy/Purpose Statement

Forever Fund

United Way of the Ozarks

Endowment Fund

Revised 01/14/04

Name

The donors to the “ Forever Fund” of the United Way of the Ozarks will be known as Forever Fund members of the United Way of the Ozarks.

Mission

To build permanent Endowment Funds, created over time through the gifts of many individuals, invested for long-term growth, and designed to guarantee forever an independent base of financial stability for the United Way of the Ozarks, and to benefit its member agencies and donor designated organizations. Endowment Funds will enhance United Way’s capacity to fulfill its mission:

“To increase understanding of human needs and to mobilize resources to meet these needs”

Purpose

The purpose of the Forever Fund is to offer a planned giving program that will build an endowment to add financial stability to the future of United Way of the Ozarks. The fund is a permanent investment. The income generated from the fund would benefit member agencies and donor designated organizations.

Donors, in addition to outright gifts, may make gifts that create income payments for themselves and/or other named beneficiaries; testamentary or lifetime gifts; or other gifts that involve legal contracts, trusts, tax, or financial planning techniques.

Board Designated Endowment Fund

The United Way Board of Directors may, from time to time, designate funds to be transferred into Endowment Funds. Upon such transfer, such funds will be covered by this policy statement.

GENERAL POLICY GUIDELINES

General Endowment Policy

As approved by the Board of Directors of United Way of the Ozarks on and after March 14, 2001, any undesignated bequest monies received will be placed in The Forever Fund endowment.

Investment of UWO’s Forever Fund and other Endowment Funds will be governed by separately approved UWO’s Investment Policy.

Administrative Overhead

No charge is to be made from gifts upon receipt or before transferring to the endowment fund. Endowment administrative and fundraising expenses are to be withheld only from the total of the endowment funds earnings each fiscal year.

Donor Intent

Gift plans will consider each donor’s intent. No agreement will be entered into which would knowingly contradict the donor’s intention. It is the intent of this policy to serve the best interest of both the donor and United Way of the Ozarks and provide responsible methods for the development, acceptance and administration of endowment gifts.

Donors will be advised and encouraged to seek independent counsel regarding their gifts. Staff and/or others contracted by the United Way of the Ozarks will not recommend specific professionals or encourage the use of one professional over another. When asked for referrals, donors will be provided with a list of at least three estate-planning professionals. The Planned Giving Committee will approve the referral list. If a donor with a significant gift chooses not to engage counsel, such decision should be acknowledged in writing.

Designated gifts may be made to benefit a specific agency or area of interest. When no agency is named, the United Way Board of Directors will be used to make a decision as to which agency(s) will receive the income. Decisions will be based on the donor’s interest and working knowledge of the agency or previous proposals received.

Ethical Standards

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Professional staff and/or other contracted professionals involved in the gifting process will maintain a high degree of professionalism throughout the gifting process with the understanding that the principal basis for making a charitable gift should be a desire on the part of the donor to fulfill his or her charitable intentions. Donors will be treated with fairness, honesty, integrity and openness. Professional staff will assist all parties in the gift planning process to fully comply with applicable federal and state laws and regulations.

Confidentiality and Disclosure

All information obtained from or about donors or prospects will be held in confidence. Neither the name, amount, or conditions of any gift will be published without the approval of the donor or the donor’s representatives. The role and relationship of all parties involved in the gift planning process will be fully disclosed to donors, including how and by whom each is compensated.

Payment of Fees

Staff, consultants and/or outside advisors will not be compensated through the payment of commissions, finder’s fees or any other fees as a condition for the delivery of a gift. To avoid conflicts of interest, United Way of the Ozarks will in no instance retain an attorney to perform legal work on behalf of donors. The board of directors will reserve the right under special circumstances to approve reimbursement to donors for expenses associated with major gifts in which United Way of the Ozarks is an irrevocable beneficiary, as may be recommended by the Planned Giving Committee. These expenses may include such items as appraisal fees, environmental impact fees and/or other costs associated with the gift.

Administrative Responsibility

The president/CEO of United Way of the Ozarks, and person(s) directed by the president, will ensure appropriate compliance with its policy by all administrative staff, and volunteers.

Trustee Policy

United Way of the Ozarks will not serve as trustee on any deferred giving arrangement in which it has a beneficial interest but will recommend that the donor select a corporate trustee of their choosing for this purpose.

Legal Counsel

United Way of the Ozarks, as necessary, will seek advice of legal counsel, independent from the donor in executing agreements, contracts, trusts, or other legal documents.

Authority for Negotiation and Approval

The president of the United Way of the Ozarks (UWO) is authorized to negotiate and approve planned giving agreements with prospective donors. No planned gift or agreement shall be binding on the UWO until the final legal documents creating the gift have been executed by the UWO president or his designee. The president may delegate such authority, within written limits, to another officer or legal counsel of the UWO. Any planned gifts of $10,000 or more shall be approved by the UWO Executive Committee by unanimous written consent resolution, by majority vote via telephone conference, or special or regular meeting of the Executive Committee.

TYPES OF GIFTS AND ACCEPTANCE PROCEDURES

Restriction of Income from Endowed Gifts

Gifts placed in the endowment fund will have the following options available regarding the use of income from the endowment fund:

1.If no designation is made, the income is deemed unrestricted. It may be

accumulated for future use.

2.The income may be designated for a specific program.

3.The income may be designated for a specific agency.

4.The income may be designated for a field of service.

Restricted Gifts

Donor designated gifts to non-member agencies are limit to a minimum of $10,000 gift. The donor will be able to build on entry level at three equal payments totaling $10,000.

Outright Gifts

Outright gifts to an endowment fund are those gifts in which United Way of the Ozarks has the assets at its immediate stewardship and in which the donor retains no continued interest. The policy of United Way of the Ozarks will be to encourage gifts of any type and description, which are consistent with the charitable objectives of an endowment fund and acceptable to it.

United Way of the Ozarks reserves the right to abstain from accepting any and all gifts that are not consistent with the objectives of the endowment fund. Gifts considered for acceptance may include but are not limited to the following types of property:

Cash, Check or Credit Card

The Office of Planned Giving, the president/CEO of United Way of the Ozarks, or other persons as designated by the president/CEO may accept gifts of any amount, which are in the form of cash, check, or credit card on behalf of the endowment fund.

Donors will receive a receipt from United Way of the Ozarks. The gift date for donor’s tax reporting purposes is ordinarily the date of delivery, although donors mailing checks which subsequently clear may use the date of the postmark as the effective contribution date. In the case of a credit card, the date of the gift will be the date the charge is accepted by the credit card company.

Publicly Traded Securities

A gift of securities registered with the Securities and Exchange Commission and bought and sold on a periodic basis through a recognized stock exchange or association of brokers is considered complete when the security is transferred to a securities firm designated by United Way of the Ozarks. Donors will be advised that gifting proceeds from the sale of appreciated securities will not preserve the advantage of eliminating the capital gains tax. The Office of Planned Giving, the president/CEO of United Way of the Ozarks, or other person(s) as designated by the president/CEO, may accept gifts of any amount, which are in the form of publicly traded securities. The value of the gift for donor income tax deduction purposes will be the average of the high and low value of the security on the date of the gift.

Unless specifically instructed at the time of the gift, and agreed upon by United Way of the Ozarks, publicly traded securities will be considered for liquidation as soon as possible after receipt to prevent potential loss to United Way of the Ozarks.

Closely-Held Securities

Donations of closely-held securities to the endowment fund will be reviewed by the Planned Giving Committee who will determine acceptance or declination. The Planned Giving Committee will recommend to the Board of Directors of the United Way of the Ozarks whether or not to accept or decline such a gift, based on recommendation and information. For accepted gifts, the committee will also determine appropriate liquidation guidelines specific to the gift. Donors will be notified of acceptance or declination of the gift by the Office of Planned Giving. Donors will receive written acknowledgment of gift acceptance.

Real Estate

Outright gifts of real property to United Way of the Ozarks Forever Fund will be reviewed by the Planned Giving Committee. The Planned Giving Committee will submit their recommendation for approval or declination of the gift to the Executive Committee of the Board of Directors.

The Executive Committee will accept or decline the gift by a majority vote. Considerations of real property gifts should evaluate the usefulness of the property for endowment purposes, the marketability of the property, the market value of the property as determined by a qualified appraisal, the existence of, or potential for, any encumbrances, such as mortgages, restrictions or easements and the existence of any costs associated with property, such as condo fees, taxes and insurance.

In order to avoid inflated appraisals, an appraisal of gift property must be provided by the donor and conducted by an independent certified appraiser.

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Unless otherwise recommended by the Planned Giving Committee and subsequently approved by the Executive Committee, gifts of encumbered real property or partial interests may not be accepted. Unless otherwise recommended by the Planned Giving Committee, donors are advised that making gifts of encumbered real estate in which debt exceeds the fair market value of the property creates tax consequences.

All gifts of commercial property require in-depth evaluation prior to acceptance due to liability exposure under the Comprehensive Environmental Responsibility, Compensation and Liability Act, (CERCLA) which may hold all owners in the chain of title, jointly and severally liable for costs associated with removal and cleanup of toxic substances and environmental hazards. All commercial properties will require owners to provide a minimum of a Phase I Environmental impact study as a part of the Due diligence to prevent against liability exposure under “CERCLA”

If the Executive Committee deems it advisable, they may require an Agreement to Indemnify from the donor which states that the donor will indemnify United Way of the Ozarks for any and all expenses incurred by United Way of the Ozarks if the property must be cleaned up after United Way takes ownership.

a) This Agreement is based upon representations and warranties by the donor that he/she has no notice or knowledge

of any violations of environmental law affecting the property and, to the donor’s best knowledge, the property is

free of contamination or other environmental hazards.

b) With concurrence of the Executive Committee, the donor can undertake a plan to satisfy all environmental law

requirements so United Way of the Ozarks can provide a marketable title.

Generally, most real estate gifts will be considered for immediate sale. Gifts of real estate that are not going to be sold immediately must show potential for future appreciation and be management free.

Gifts of real estate with a retained life interest should have a value of at least $100,000. The donor will be required by agreement to maintain the property, pay real estate taxes, pay fees such as association fees or assessments, pay for insurance, utilities, and repairs. Capital improvements must also be made at the donor’s expense. Retained life agreements must be approved by United Way of the Ozarks legal counsel and donors must sign a Memorandum of Understanding of their responsibilities at the time the gift is made.

Designated official(s) of United Way of the Ozarks will sign all required title transfers.

Tangible Personal Property

Generally, United Way of the Ozarks will not accept gifts of tangible personal property to the endowment fund. However, the Planned Giving Committee reserves the right to consider such gifts under special circumstances.

Donors are required to file the appropriate form(s) with their Federal Income Tax Return if the amount of their tax deduction for all non-cash gifts is more than $500. Forms may be obtained from the Internal Revenue Service.

For tangible personal property gifts valued at $5000 or more, the donor must file form 8283 and have Section B signed by a United Way representative. The donor is also required to provide United Way with a copy of the required written appraisal, which must accompany form 8283. This appraisal must include:

• Detailed description for the property
• Date of the gift
• Physical condition of the property
• Any terms of the gift relating to disposition of property
• The appraiser’s name address and TIN
• Appraiser’s qualifications
• Declaration that appraisal was performed for tax purposes
• Date of the appraisal
• Appraised fair market value

United Way of the Ozarks will file form 8282 with the IRS for any gifts of $500 or more which are sold or disposed of within two years of transfer.

Life Insurance

When the life insurance policy is fully paid up, a charitable contribution is generally the cash surrender value. A policy that is not fully paid up may be given and a charitable contribution allowed for the cash surrender value of the policy. Future premiums are deductible when paid.

A donor may give a paid up life insurance policy, naming the UWO as both owner and irrevocable beneficiary. A donor may give a life insurance policy that is not paid up if the policy has a current gift value, or if the UWO president is reasonably assured that the donor will continue to make gifts at least equal to the cost of premiums for the policy. Should a contributed life insurance policy require additional premiums to remain in force, the Planned Giving Committee shall determine the precedence of accepting such a contribution, and the donor shall be made aware that the UWO cannot guarantee that policies needing premium payments will be maintained.

Gifts of Qualified Funds. A donor may designate the Forever Fund as a beneficiary of qualified funds, such as IRAs, 403(b)s, 401(k)s, profit-sharing plans, etc. Gifts of qualified funds should be carefully coordinated with the donor’s income tax and estate planning.

Bequests. Testamentary gifts (gifts made by will) are encouraged and accepted as provided in these policies.

Charitable Remainder Trusts. A charitable remainder trust allows a donor to give property or cash to be managed by a third party (the trustee) to earn an income paid to income beneficiaries (usually the donor or donors) for life or a period of years. At the end of the income payment period, the trust principal is distributed to the charitable remainder man. There are two forms of the charitable remainder trust:

The unitrust provides an income based on a set percentage of the trust principal chosen by the donor at the outset. Each year, the trustee multiplies the value of the trust fund by the percentage chosen and pays that amount in annual, semiannual, quarterly, or monthly payments. This is the most flexible charitable trust arrangement and is the arrangement of choice for most donors;

The annuity trust provides a fixed dollar income chosen by the donor at the outset. The payments do not change and will come from trust principal should earned income not be sufficient. Payments may be annual, semiannual, quarterly, or monthly.