NORTHERN CALIFORNIA CONFERENCE OF SDA
10+10 Education Endowment
10+10 EDUCATION ENDOWMENT
TERMS AND CONDITIONS
PURPOSE AND GOALS
This document sets forth the general policies to be followed by the Northern California Conference Investment Committee (CIC) and Conference Executive Committee (CEC) in the management and administration of the Ten + Ten Endowment Fund (The Fund). In general, the purpose of this statement is to outline a philosophy and attitude which will guide the management of The Fund’s assets. It is intended to be sufficiently specific to be meaningful, yet flexible enough to be practical. The terms of this document are intended to be specific to the Ten + Ten Endowment Fund.
All donations are irrevocable and final upon receipt.
All contributions to and undistributed earnings in The Fund will be invested in a manner consistent with The Northern California Conference Endowment Fund Investment Policy (The Investment Policy). The Investment Policy is subject to change at the recommendation of the CIC and approval of the CEC.
INCOME AND EXPENSES
The Fund believes that grants and income distributions to be made in the future are as important as distributions made today. This is consistent with the philosophy that The Fund is to exist in perpetuity, and therefore, shall provide for grant making in perpetuity. To attain this goal, the overriding objective of The Fund is to maintain the purchasing power of endowment accounts.
Income for The Fund shall be recognized as follows:Contributions: Any funds received directly from donors designated as restricted for The Fund. Contributions are considered the principal of The Fund for the purposes of this endowment. All such contributions will be classified as permanently restricted.
Investment Income, Unrealized Gains, and Realized Gains: Earnings from principal and undistributed earnings. All investment income will be classified as temporarily restricted until the purpose restriction is met and funds are distributed. Earnings will be calculated on a calendar year of January 1 to December 31 for the purposes of determining distributions (See Spending Policy below).
Operating Expenses: Operating expenses include, but are not limited to, investment consultant fees, marketing and promotion expenses and other fees incurred in operating The Fund. All operating expenses will be netted against investment income for the fund to calculate a net investment income. Operating expenses will be monitored and reviewed by the Northern California Conference Investment Committee (CIC) and reported to the Northern California Conference Executive Committee (CEC).LIMITED LIABILITY OF NORTHERN CALIFORNIA CONFERENCE AND AFFILIATED ENTITIES
The Fund is a stand-alone fund. Should investment losses significantly impair the ability of the fund to continue, or should investment losses to contribution principal be considered to be permanent, the Northern California Conference of Seventh-day Adventists or any of its subsidiary organizations are not responsible for the reimbursement of such losses.
The Fund places high emphasis on meeting its support obligations and regards spending from year to year as relatively inflexible. Therefore, in order to achieve a relatively stable spending pattern while allowing for investing in securities providing relatively high total earnings, the Fund will base amounts available for spending on the total value of investment accounts. The CIC will determine annually amounts to be spent or granted from The Fund assets. The target annual spending is to be 3% to 6.5% of the average quarterly balance of the last three years which The Fund is in existence. The CIC anticipates this level of spending will allow retained income to equal or exceed inflation and thereby maintain purchasing power.
The CIC will make a recommendation to the CEC at the first meeting of each calendar year to set the distribution for the year.
The calculation for the distribution of funds will based upon the fund balance (contributions plus undistributed earnings) at December 31. The distribution of funds will occur during the July 1 to June 30 fiscal year starting after December 31. The annual distribution from The Fund will go to the NCC Worthy Student Fund.
Should The Fund incur investment losses in consecutive years, the CIC would have the authority to recommend the withholding of appropriations going forward until the fund has recovered. Should the minimum appropriation of 3% exceed investment earnings in three consecutive years, the CIC would have the authority to recommend the withholding of appropriations in the fourth year going forward until the fund has recovered accrued losses.
USE FOR CHARITABLE PURPOSES
The Fund will use your gift only to advance Northern California Conference educational programs and initiatives.
CHANGING OF RESTRICTION AND PURPOSE OF THE FUND
The CEC reserves the right to change the restriction of endowment funds contributed should the Ten + Ten Fund not raise sufficient principal to be practical, investment losses eliminate over 50% of principal, or the terms and conditions of the endowment becomes impractical.