HomeMy WebLinkAboutCommunity Foundation - Non-Endowed Designated Fund - 9/11/2006 G�yzn 9->1-0';C
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COMMUNITY FOUNDATION
of Waterloo/Cedar Falls and Northeast Iowa
Donation and Acceptance Form for Establishment
of a Non Endowed Designated Fund
THIS INSTRUMENT is executed this day o 9 y the City of Waterloo (herein
referred to as "Agency" )and the COMMUNITY FOUNDATION OF WATERLOO/CEDAR
FALLS AND NORTHEAST IOWA(hereinafter, the "Foundation")in order to establish a
component Fund in the Foundation. The type of Fund established herewith is a Non-Endowed
Designated Fund, from which donations to the Fund shall be made available exclusively for flag
poles and flags in Waterloo—the first flagpole to be installed at the site of the of the "Welcome
to Waterloo" sign on Highway 63 North in Waterloo. This fund shall be administered in
accordance with the provisions set forth below.
1. Name of the Fund. The name of this Designated Fund(hereinafter, the "Fund")shall be the
"Flags of Waterloo Fund".
2. Initial Contribution. The City of Waterloo will encourage donations to the fund for the
purpose for which it is designated. The Agency shall be notified of the names of Donors to this
Fund. Such information also will be published in the Foundation's annual report, unless a Donor
should request anonymity.
3. Acceptance of Property. The Foundation hereby affirms that it will hold such donations and
any additional property given the Fund on the terms and subject to the conditions set forth by this
agreement for Designated Funds. The guidelines and procedures for such Funds are described in
the Foundation's governing instruments, including its Articles of Incorporation and By-Laws, in
effect, as amended from time-to-time.
4. Management of the Fund. Control over the investment of such property of the Fund will be
exercised exclusively by the Foundation.
5. Supportive Contribution. The Community Foundation of Waterloo/Cedar Falls and
Northeast Iowa shall assess a supportive contribution fee for administering this Designated Fund.
This assessment will be 2%of each donation received. Costs that may be incurred relative to
acceptance of a gift(e.g. real estate gifts) will be separate from the 2% and will be negotiated
prior to the acceptance of such a gift. An audit fee of$75.00 per year will be assessed to the
Fund.
6. Distributions and Purpose. The general purpose of grants made from the Fund will be to
support the Flags of Waterloo project and in accord with directions contained in any deed of gift
by original donors.
The Foundation will notify the Agency of the amount available for distribution from the Fund.
In turn the Agency will be asked to declare in writing on forms provided by the Foundation
requests for distributions from the Funds.
The Board of the Foundation, however, shall retain the right to make final approval of all
distributions from the Fund, an Internal Revenue Service requirement for component Funds held
by a community foundation.
It is anticipated that the Foundation Board will approve all requests made by the agency as long
as donor intent is maintained and so long as the agency remains a bona fide 501(C)3
organization/government agency as defined in the IRS Code.
7. Services to the Agency Establishing the Fund. The Foundation's services to the Agency
will include professional management of funds; annual audits and tax returns (as part of the
comprehensive audit and tax reporting on all component funds); assistance in closing deferred
gifts for the Fund; assistance in processing gifts including issuance of appropriate IRS tax return
forms(with appropriate fees charged for any additional expenses incurred thereby); consultation
in public relations related to the Fund; financial statement updates; database of all donors , who
will be listed in the Foundation's annual report, unless the donor asks for anonymity; data base of
all pledges and records of donations, invoicing of pledges on a quarterly basis, receipts and thank
you letters to all donors to the Fund. Payment of bills, upon written request from the agency,
directly to the vendor. Such distributions will be reflected for audit purposes as a grant to the
agency.
S. Fund not a Separate Trust. The assets of the Fund shall be the assets of the Foundation and
not a separate trust. The Fund shall be organized and administered so that the federal income tax
status of the Foundation as a public charitable organization under Section 501(c)(3) of the
Internal Revenue Code, as amended, will not be affected adversely under this arrangement.
This agreement will be interpreted in a manner consistent with the Federal income tax provisions
and regulations that govern the operation of a community foundation, as they may be amended
from time-to-time by the Foundation's Board to conform to such provisions and regulations.
9. No Amendment. The Agency understands and declares that all donations are absolute and
irrevocable and that, after the execution of the instrument, no donor has any right,title, interest,
or incidents of ownership in the property transferred to this Fund. The Agency shall have no
right to alter, amend, or terminate this instrument. At the same time it is understood that the
Foundation is under obligation to res ect the purpose for which this Fund was established and
the agency which it is designed to sup ort.
10. Variance. Consistent with the terms and provisions of the Foundation's bylaws, should the
Board of Trustees find that it is not possible to utilize the assets of the Fund as restricted,the
Community Foundation shall utilize such income for the educational, benevolent, charitable, or
public purposes as the Board deems appropriate.
Receive r the Foundation by: Exe ed-for the Agency by:
President & CEO Mayor, City of aterloo