Sample Foundation Template

THE
ËË
FOUNDATION
Created on
ËË ËË, ËË by
ËË and
ËË.
I am only one, but I am One. I can't do everything, but I can

do something. And what I can do, I ought to do. And what I
ought to do, by the Grace of God, I will do.
THE
Ë
FOUNDATION
Created on Ë Ë, Ë by
Ë and
Ë.
MISSION STATEMENT:
"ËË"
THE Ë FOUNDATION
INTRODUCTION
ommitment to family and to something larger than family is often the basis for the decision
C to create and sustain a Family Foundation. The donor and family share an enthusiasm for
working together and a concern for community. The community may be cause or
geography based. It may be the result of something that has profoundly touched the family, such as
cancer research or access to education, or it may be the desire to support arts, missionary work,
family history or economic activity in the region where the family grew and prospered.
Although organized family philanthropy has existed for generations, there have been great gains in
both the scope and energy of this field in the past twenty years. Nowadays, wealthy individuals in
the United States can select among several charitable options that offer tax-savings benefits,
directing social capital and choice of funding areas. Donors choose both the giving focus and the
vehicle most appropriate to achieving their philanthropic goals. In the midst of this energy, Family
Foundations are thriving. Over the past decade, more donors have chosen to form Family
Foundations than in any other period in American history. Thus, record numbers of private Family
Foundations are forming, and established Family Foundations are planning for generational
succession.
To support family giving in all its forms, The Stewardship Institute established The Stewardship
Academy in 1999. The academy is dedicated exclusively to families who have a desire to "do well"
by "doing good". It includes hands on training for developing the correct legal structure, a focused
stated mission and pertinent data to be a successful and productive charity. A significant team of
individuals, trustees, tax and legal providers have contributed to the development of this Academy
Workshop. The Stewardship Academy expresses its sincere admiration for, and appreciation to,
these volunteers. Their generosity in sharing their expertise and insights has enriched this
educational experience.
While those new to Family Foundations will find these documents helpful in providing an
orientation to the responsibilities and excitement of organized philanthropy, a continual review of
these documents will undoubtedly stir new ideas or renew the promise and potential of your family
and charity.
Paul Ylvisaker, a Family Foundation Trustee and professor of philanthropy and education, wrote:
"There is something distinctive and precious about Family Foundations that suggests they should
remain as they are — a unique opportunity for families to make and leave their mark on the society
around them, to share with others the fortune they have enjoyed, and the creative energies they so
often possess." (Family Business Review, 1990)
It is my sincere hope that the creative spirit of all who participated in this Academy Workshop will
inspire and inform others of the rewards that are connected to families who "do well" by "doing
good". May your family be a distinctive and precious contribution to our society.
R. A. Prescott, Trustee
The Stewardship Institute
THE Ë FOUNDATION
INSTALLATION CHECKLIST
OBJECTIVE
Welcome to the dynamic world of philanthropy. Since the beginning of

time, families have sought opportunities that would enable them to make
a difference in their communities and their circle of influence. This
installation checklist will ensure the complete and timely completion of
those tasks necessary to the success of your Family Foundation. This
installation checklist is unique, in that it acknowledges the importance of
documentation and compliance.
This simple guide is a navigational tool to help your Family Foundation

further its mission and vision. Each task represents another completed step
in your family's journey toward the ability to make a difference in a
changing world.
I am only one, but I am One. I can't do everything, but I can do something. And what I can do, I
ought to do. And what I ought to do, by the Grace of God, I will do.
MISSION STATEMENT
Mission and vision statements articulate the foundation's goals and give an
overall focus to its work. For the Trustees of the Family Foundation,
developing the vision and mission statements is the ultimate way to
express and honor the intent of the Founder, now and in perpetuity.
To distinguish between the two, a vision statement expresses an

organization's optimal goal and reason for existence, while a mission
statement provides an overview of the group's plan to realize that vision be
identifying the service areas, target audience, and values and goals of the
organization.
“ Complete vision statement with the Board of Trustees so the

foundation's ultimate purpose of accomplishments is expressed.
“ Complete mission statement with the Board of Trustees so the

intent and purpose of the foundation are expressed.
“ Make a copy to include in the IRS Form 1023 (Tab 6).
“ File mission statement behind Mission Statement tab.
Family Foundation Installation Checklist — Page 1 of 6.

GOVERNING DOCUMENT
As a whole, the Board works to oversee all aspects of the foundation's

management, operations and grant making, relying on each of its
members to approach the role of trusteeship in a conscientious,
responsible way, in accordance with the law and in the spirit of
responsible philanthropy.
The epitaph on a seventeenth century tomb at London's Westminster

Abbey reads:
What I gave, I have. What I spent, I had. What I left I lost by not giving.
“ Sign and notarize Family Foundation documents.
“ Sign and notarize Quitclaim (if applicable).
“ File Quitclaim at the County Recorder (if applicable).
“ Create contracts for compensation of the staff (if any) and Board
members.
FINANCIAL INVESTMENT INFORMATION
One of the basic tasks for a foundation trustee is to receive and manage
donated assets. Family Foundation Boards are unlike any other in formal
philanthropy. Trustees are usually related to the donor and are literally
investing and managing family funds that the donor has committed to
charity. It is important to establish a prudent system of checks and
balances when dealing with the finances of the family foundation. It is
advisable to allocate finance work among several people so that no one
person is in charge of handling all of the transactions related to money. By
proceeding in such a prudent fashion, the potential for misappropriation
of funds is minimized.
“For a hundred that can bear adversity there is hardly one that can bear
prosperity.” Thomas Carlyle (1795-1881), Scottish writer
“ Prepare a copy of the bank resolution minute.

“ Open the appropriate account for the foundation.
“ Set up an accounting program for the foundation.
“ Interview and select financial and tax service providers.
“ Document all financial transactions, including information related
to investments, income, and expenditures.
“ Tax returns and other information related to dealing with the IRS.
“ Develop grant making policies.
“ Retain all correspondence relating to grant making.

REPORTS
In order to guide and instruct Trustees about the proper management of

the Family Foundation, the authors have consolidated information from
a variety of official sources. Information about compliance,
administration, fiduciary responsibility and foundation management
techniques have been gathered from authoritative publications and
sources; including the Internal Revenue Service Code. Such as:
Publication 526, Charitable Contributions (23 pages); Publication 598,
Tax Information for Private Foundations and Foundation Managers (22
pages); Publication 3833, Disaster Relief (32 pages); Publication 1771,
Charitable Contributions - Substantiation and Disclosure Requirements
(16 pages); Publication 557, Tax - Exempt Status for Your Organization
(72 pages); Publication 561, Determining the Value of Donated Property
(15 pages); Council on Foundation and other related information.
“ Read and study reports.
Publications are downloadable at

http://www.irs.gov/app/picklist/list/publicationsNoticesPdf.html
COMPLIANCE DOCUMENTS
If you do not complete all applicable parts or do not provide all required
attachments, the I.R.S. may return the incomplete application to your
organization for re-submission with the missing information or
attachments. This will delay the processing of the application and may
delay the effective date of your organization's exempt status. The
organization may also incur additional user fees. Please make sure the
application is complete.
Have you...
“ Complete Attorney General Initial Registration Checklist
“ Reviewed and completed Form 1023 checklist?
“ Prepared the application for mailing? (See Where To File

addresses on Form 1023.) Do not file the application with your
local Internal Revenue Service Center.
“ Shown the organization's Employer Identification Number (EIN)?

(a.) If your organization has an EIN, write it in the space provided.
(b.) If this is a newly formed organization and does not have an
Employer Identification Number, obtain an EIN by telephone.
(See specific Instructions, Part I, Line 2, on page 3.)

“ Described your organization's specific activities as directed in Part
II, line 1, of the application?
“ Included a conformed copy of the complete organization

instrument? (See Specific Instructions, Part I, Line 10, on page 3.)
“ Had the application signed by one of the following? a.) An officer

or trustee who is authorized to sign (e.g., president, treasurer); or
(b.) A person authorized by a power of attorney (Submit Form
2848, or other power of attorney.)
“ Enclosed financial statements (Part IV)? (a.) Current year (must

include period up to within 60 days of the date the application is
filed) and 3 preceding years. (b.) Detailed breakdown of revenue
and expenses (no lump sums). (c.) If the organization has been in
existence less than 1 year, you must also submit proposed budgets
for 2 years showing the amounts and types of receipts and
expenditures anticipated.
Note: During the technical review of your Family Foundation Application, it

may be necessary for the Internal Revenue Service to contact your organization
for more specific or additional information.
In addition, you will have to:
“ Apply for the Employer Identification Number for the foundation.

See Form SS-4 for instruction and direction for filing.
“ Interview and select a CPA to prepare and file Form 1023 (if
necessary) and 990 PF. File Form 1023 (tax-exempt recognition
per IRS)
“ File 990 PF with the IRS
“ Make available the 990-PF report each year—including a

telephone number for the foundation. (Federal information return,
Form-PF)
“ State law may also require the filing of an annual report, which
will often include a copy of the federal form.

HISTORICAL MATERIALS
The vast majority of Family Foundations expect to exist in perpetuity. The

greatest success of the Family Foundation derives from striking an on-
going balance between the history and traditions of our past - the legacy
we inherit - and the plans and aspirations for our future - the legacy we
leave.
Understanding the opportunities and the challenges of this continuing

journey is a critical responsibility of Family Foundation leaders. With this
in mind, experiences, activities, and relationships need to be documented
to further the vision of the foundation for future generations. Enclosed are
some thought starters to ensure continuity and fulfillment of family
legacy. Use these thought starters to develop your own Family Foundation
workbook and guide.
“ Develop a plan for continuity.
“ Write the story of your family.
“ Record your Family Foundation mission and vision.
“ Record the organizational structure and leadership.
“ Identify, document and develop successors.
“ Plan the annual retreat.
“ Create a family tree.
“ Explore charitable opportunities and document all activity with

qualified Charitable Organizations.
“ Record significant family stories, events, and accomplishments.
“ Organize and plan a family history project.
“ Record charitable site visits.
“ Have fun!!!

SUMMARY
Setting up and governing a foundation is a comparatively simple matter

and a family foundation can be run in a virtually risk-free environment,
provided proper procedures are followed at all times. It is safe to say that
foundation law is no more stringent that any other law that regulates areas
where the public trust is involved.
It is important to become a successful Trustee, and to successfully manage

and increase the Foundation's holdings. The Trustee is to be well-
informed and take the time to know the foundation and the foundation's
environment. Remember, the trustees bear the ultimate responsibility for
all actions and omissions of the foundation.
Success as a Trustee also involves becoming disciplined in your training

and operation of this Family Foundation. Since you alone are the voice
and hands of the Foundation, manage it to the best of your ability. This
will develop the legacy for your Family Foundation and ensure its
positive impact on society.
cONGRATULATIONS on completing the installation of the Family

Foundation.
We conclude with a quote from the Father of our Country, George

Washington:
“Discipline is the soul of an army. It makes small numbers formidable;

procures success to the weak, esteem to all.”
(Letter of instructions to the captains of the Virginia Regiments (July 29, 1759))
This publication is designed to provide accurate and authoritative information in regards

to the subject matter covered. It is written with the understanding that the publisher is not
engaged in rendering legal, accounting, or any other professional service. If legal or accounting
advice or other expert assistance is required, the services of a competent professional should be
sought.

TRUST AGREEMENT
THIS AGREEMENT, creating the ËË Foundation, is made in the City of ËË,
State of ËË, this Ë day of Ë, Ë, between Ë, Founder/Co-Trustee and Ë, Co-Trustee,
hereinafter collectively referred to as the Trustees.
The Founder, Ë, hereby transfers property to the Trustees, and the Trustees
hereby declare and agree that they have received this day from Ë as Donor, the sum
of Ten United States Federal Reserve Dollars ($10.00) and that they will hold and
manage the same and any additions to it in trust, as follows:
Article I
The name of this Trust shall be the "Ë Foundation".
Article II
The Ë Foundation is created exclusively for charitable, religious, scientific,

literary and educational purposes, including, for such purposes, the making of
distributions to organizations that qualify as exempt organizations under section
501(c)(3) of the Internal Revenue Code.
Article III
The Trustees may receive and accept property, whether real, personal, or
mixed, by way of gift, bequest, devise, from any person, firm, trust, or corporation,
to be held, administered, and disposed of in accordance with and pursuant to the
provisions of this Trust Agreement; but no gift, bequest or devise of any such
property shall be received and accepted if it is conditioned or limited in such
manner (a) as to require the disposition of the income or its principal to any person
or organization other than a "charitable organization" or for other than "charitable
Ë FOUNDATION TRUST AGREEMENT PAGE 1 of 10.

purposes" within the meaning of such terms as defined in paragraphs (h) and (i) of
Article VI of this Trust Agreement, or (b) as shall in the opinion of the Trustees,
jeopardize the federal income tax exemption of the Ë Foundation pursuant to
section 501(c)(3) of the Internal Revenue Code (or the corresponding provision of
any future United States Internal Revenue Law).
Article IV
(a) The principal and income of all property received and accepted by the
Trustees to be administered under this Trust Agreement shall be held in trust by
them, and the Trustees may make payments or distributions from income or
principal, or both, to or for the benefit of such one or more organizations that
qualify as exempt organizations under section 501(c)(3) of the Internal Revenue
Code (or the corresponding provision of any future United States Internal Revenue
Law), as the Trustees shall from time to time determine; and the Trustees may make
payments or distributions from income or principal, or both, directly for the
charitable purposes of the Ë Foundation, as defined in paragraph (i) of Article VI,
as the Trustees shall from time to time determine.
(b) Income or principal derived from contributions by corporations shall be

distributed by the Trustees for use solely within the United States or its possessions.
(c) No part of the net earnings of the Ë Foundation shall inure or be payable
to or for the benefit of any private individual, and no substantial part of the
activities of the Ë Foundation shall be carrying on of propaganda, or otherwise
attempting, to influence legislation.

(d) No part of the activities of the Ë Foundation shall be the participation in,
or intervention in (including the publishing or distributing of statements), any
political campaign on behalf of any candidate for public office.
(e) The Trustees shall distribute the income of the Ë Foundation for each tax
year at such time and in such manner as not to become subject to the tax on
undistributed income imposed by section 4942 of the Internal Revenue Code (or
the corresponding provision of any future United States Internal Revenue Law).
Further, the Trustees shall not engage in any act of self-dealing as defined in
section 4941(d) of the Internal Revenue Code (or the corresponding provision of
any future United States Internal Revenue Law) nor retain any excess business
holdings as defined in section 4943(c) of the Internal Revenue Code (or the
corresponding provision of any future United States Internal Revenue Law), nor
make any investments in such manner as to incur tax liability under section 4944
of the Internal Revenue (or the corresponding provision of any future United States
Internal Revenue Law), nor make any taxable expenditure as defined in section
4945(d) of the Internal Revenue Code (or the corresponding provision of any future
United States Internal Revenue Law).
Article V
This Trust Agreement may be amended at any time or times by written

instrument or instruments signed and acknowledged by the Trustees, provided that
no amendment shall authorize the Trustees to conduct the affairs of the Ë
Foundation in any manner or for any purpose contrary to the provisions of section
501(c)(3) of the Internal Revenue Code (or the corresponding provision of any
future United States Internal Revenue Law). An amendment of the provisions of
this Article V (or any amendment to it) shall be valid only if and to the extent that

such amendment further restricts the Trustees' amending power. All instruments
amending this Trust Agreement shall be noted upon or kept attached to the
executed original of this Trust Agreement held by the Trustees.
Article VI
(a) Any Trustee under this Trust Agreement may, by written instrument,
signed and acknowledged, resign his office. The number of Trustees shall be at all
times not less than two, and whenever for any reason the number is reduced below
two, there shall be, and at any other time there may be, appointed one or more
additional Trustees. Appointments shall be made by the Trustee or Trustees for the
time in office by written instruments signed and acknowledged.
(b) Upon any change in any trusteeship hereunder, the continuing Trustee
or the next successor Trustee or Trustees, as the case may be, shall have all of the
powers, authorities, rights, discretions, immunities, estates, titles, duties and
obligations of the original Trustees, without the necessity of any conveyance or the
taking of any action whatsoever.
(c) None of the Trustees shall be required to furnish any bond or surety.
None of them shall be responsible or liable for the acts or omissions of any other
of the Trustees or of any predecessor or of a custodian, agent, depository or counsel
selected with reasonable care.
(d) The Trustee or Trustees from time to time in office shall have full
authority to act even though one or more vacancies may exist. A Trustee may, by
appropriate written instrument, delegate all or any part of his powers to another or

others of the Trustees for such periods and subject to such conditions as such
delegating Trustee may determine.
(e) The Trustees serving under this Agreement are authorized to pay to
themselves amounts for reasonable expenses incurred and reasonable compensation
for services rendered in the administration of the Ë Foundation.
(f) The Trust shall continue forever unless the Trustees terminate it and
distribute all of the principal and income, which action may be taken by the
Trustees in their discretion at any time; provided, however, that if and to the extent
that state law prohibits perpetual duration, the Ë Foundation shall not extend
beyond the maximum period permitted under applicable state law. Upon the
dissolution of the Ë Foundation, assets shall be distributed for one or more exempt
purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or
corresponding section of any future federal tax code, or shall be distributed to the
federal government, or to a state or local government, for a public purpose.
(g) The Trustees are authorized to form and organize a nonprofit corporation
limited to the uses and purposes provided for in this Trust Agreement, such
corporation to be organized under the laws of any state or under the laws of the
United States as may be determined by the Trustees. Such corporation when
organized shall have power to administer and control the affairs and property and
to carry out the uses, objects, and purposes of the Ë Foundation. Upon the creation
and organization of such corporation, the Trustees are authorized and empowered
to convey, transfer, and deliver to such corporation all the property and assets to
which the Ë Foundation may be or become entitled. The articles, bylaws, and other
provisions for the organization and management of such corporation and its affairs

and property shall be such as the Trustees shall determine, consistent with the
provisions of this paragraph.
(h) In this Trust Agreement and in any amendments to it, references to

"charitable organizations" or "charitable organization" mean corporations, trusts,
funds, foundations, or community chests created or organized in the United States
or in any of its possessions, whether under the laws of the United States, any state
or territory, the District of Columbia, or any possession of the United States,
organized and operated exclusively for charitable purposes, no part of its net
earnings of which inures or is payable to or for the benefit of any private
shareholder or individual, and no substantial part of the activities of which is
carrying on propaganda, or otherwise attempting to influence legislation, and which
do not participate in or intervene in (including the publishing or distributing of
statements), any political campaign on behalf of any candidate for public office. It
is intended that the organization described in this paragraph (h) shall be entitled to
exemption from federal income tax under section 501(c)(3) of the Internal Revenue
Code (or the corresponding provision of any future United States Internal Revenue
Law).
(i) In this Trust Agreement and in any amendments to it, the term "charitable
purposes" shall be limited to and shall include only charitable, religious, scientific,
literary, or educational purposes within the meaning of those terms as used in
section 501(c)(3) of the Internal Revenue Code (or the corresponding provision of
any future United States Internal Revenue Law), but only such purposes as also
constitute charitable purposes under the law of trusts of the State of Ë.

Article VII
The Trustees shall have, in addition to all powers granted by law, and subject
to paragraph (e) of Article IV hereof, the following powers with respect to the Ë
Foundation, exercisable in the Trustees' discretion:
(a) To invest and reinvest the principal and income of the Trust in such
property, real, personal, or mixed, and in such manner as they shall deem proper,
and from time to time change investments as they shall deem advisable; to invest
in or retain any stocks, shares, bonds, notes, obligations, or personal or real
property (including without limitation any interests in or obligation of any
corporation, partnership, association, business trust, investment trust, common trust
fund, or investment company) although some or all of the property so acquired or
retained is of a kind or size which but for this express authority would not be
considered proper and although all of the trust funds are invested in the securities
of one company. No principal or income, however, shall be loaned, directly or
indirectly, to any Trustee or to anyone else, corporate or otherwise, who has at any
time made a contribution to the Ë Foundation, nor to anyone except on the basis of
an adequate interest charge and with adequate security.
(b) To sell, lease, or exchange any personal, mixed, or real property, at

public auction or by private contract, for such consideration and on such terms as
to credit or otherwise, and to make such contracts and enter into such undertakings
relating to the trust property, as the Trustees consider advisable, whether or not
such leases or contracts may extend beyond duration of the Ë Foundation.
(c) To borrow money for such periods, at such rates of interest, and upon
such terms as the Trustees consider advisable, and as security for such loans to

mortgage or pledge any real or personal property with or without power of sale; to
acquire or hold any real or personal property, subject to any mortgage or pledge on
or of property acquired or held by the Ë Foundation.
(d) To execute and deliver deeds, assignments, transfers, mortgages,

pledges, leases, covenants, sealed or unsealed, incident to any transaction in which
the Trustees engage.
(e) To vote, to give proxies, to participate in the reorganization, merger or

consolidation of any concern, or in sale, lease, disposition, or distribution of its
assets; to join with other security holders in acting through a committee, depositary,
voting trustees, or otherwise, and in this connection to delegate authority to such
committee, depositary, or trustees and to deposit securities with them or transfer
securities to them; to pay assessments levied on securities or to exercise
subscription rights in respect of securities.
(f) To employ a bank or trust company as custodian of any funds or

securities and to delegate to it such powers as the Trustees deem appropriate; to
hold trust property without indication of fiduciary capacity but only in the name of
a registered nominee, provided the trust property is at all times identified as such
on the books of the Ë Foundation; to keep any or all of the trust property or funds
in any place or places in the United States of America; to employ clerks,
accountants, investment counsel, agents, attorneys and any special services, and to
pay the reasonable compensation of the Trustees.
Article VIII
The Trustees' powers are exercisable solely in the fiduciary capacity

consistent with and in furtherance of the charitable purposes of the Ë Foundation
as specified in paragraph (i) of Article VI and not otherwise.
Article IX
The term "Trustees" as used in this instrument shall include the original
Trustees and any successor or continuing Trustee or Trustees at the time acting.
Where appropriate, with reference to the Trustees, the use of the masculine shall
include the feminine and the neuter, and the plural shall include the singular, and
vice versa.
Article X
Any person may rely on a copy, certified by a notary public, or the executed
original of this Trust Agreement held by the Trustees, and of any of the notations
on it and writings attached to it, as fully as he might rely on the original documents
themselves. Any such person may rely fully on any statements of fact certified by
anyone who appears from such original documents or from such certified copy to
be a Trustee under this Trust Agreement. No one dealing with the Trustees need
inquire concerning the validity of anything the Trustees purport to do. No one
dealing with the Trustees need see to the application of anything paid or transferred
to or upon the order of the Trustees of the Ë Foundation.
Article XI
The validity, effect and construction of the Ë Foundation shall be determined

in accordance with the laws of the Sate of Ë. The original situs and place of
administration of the trust estate shall be located at ËË, ËË, but the situs and place
of administration of the trust estate may, however, be transferred at any time or

from time to time to such place or places as the Trustees deem to be for the best
interests of the trust estate. In so doing, the Trustees may resign and appoint a
substitute Trustee, but remove each substitute Trustee and appoint another,
including any one or more of the appointing Trustees, at will. Each substitute
Trustee so appointed may delegate any and all of such substitute Trustee's powers,
discretionary or ministerial, to the appointing Trustees.
IN WITNESS WHEREOF, the Founder and the original Trustees have executed
this Trust Agreement on the day and year first above written.
__________________________ __________________________
Ë, Founder Ë, Trustee
__________________________
Ë, Trustee
State of Ë
County of
}S.S.
On , 20 , before me, Ë, a Notary Public, personally appeared Ë and Ë, who proved
to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of Ë that the foregoing paragraph is true and
correct.
WITNESS my hand and official seal.
Notary Public, State of Ë
My Commission expires

MINUTES OF THE FIRST MEETING OF THE
Ë FOUNDATION
Date: ___/____/___ Time: _________ Location: ________________________
At the FIRST MEETING of the Board of Trustees of Ë Foundation, all Trustees

being present, by unanimous accord the following was affirmed and ratified, viz:
1. That, pursuant to the request and declaration of Ë Foundation, founder

on the above date, a Trust Agreement creating Ë Foundation is duly
executed, acknowledging Ë Foundation, Trustee(s) as the above
named parties by signatures evidencing the parties acceptance of the
office of Trustee of Ë Foundation and succeeds for the titles and the
color of title of all property held in Trust accepting the duties and all
the powers and all the restrictions, and obligations granted for and
imposed upon the Trustee(s) by Ë Foundation indentures; and
2. Now comes the Founder, requesting the Trustees shall at the earliest
possible date, cause the Trust Agreement be submitted with form:
1023 for the Internal Revenue Service as Application for Recognition
of the Exemption under, Section: 501(c)(3) of the Internal Revenue
Code; and
3. Pursuant the tax laws governing private foundations the Trustees

herein shall immediately apply for the Foundation's Employer
Identification Number using the enclosed FORM SS-4 and following
the enclosed instructions; and
4. The founder Ë creates Ë Foundation a private foundation for the

purpose of gifting certain rights, title and interest in real and personal
properties so the founder Ë can maximize a lifetime effort through
utilization of all of: Ë's own Rights in the pursuit of happiness and the
desire for promoting the general welfare all of which the founder Ë
believes will achieve, because the act is in accordance with the
founder's, Ë's RELIGIOUS BELIEFS and sustained in section
501(c)(3) of the Internal Revenue Code; and
5. Due for National and International economic conditions with

attendant accelerated inflationary trends, the preservation of the
Ë FOUNDATION - FIRST MINUTES PAGE 1 of 7 .

founder's assets for maintaining the Family's security could best be
provided by Ë Foundation, a private foundation, thus holding the
Family together and causing Families for working as a team for
charitable purposes; and
6. For demonstrating and implementing in a practical and meaningful

way for the benefit of the family, the following American credo which
was formulated by the honorable Don Belding, co-founder of the
Freedoms Foundation, said credo having been endorsed by more than
250 Chief and Associate Justices of the State Supreme Courts, as a
clear, teachable, definition of the AMERICAN WAY OF LIFE; and
" Right for Worshiping God in One's Own Way;

" Right for Free Speech and Press;
" Right for Peaceable Assembly;
" Right for Petitioning for a Redress of Grievances;
" Right for Privacy in Our Home;
" Right of Habeas Corpus - No Excessive Bail;
" Right for Trial by Jury — Innocent Until Proved Guilty;
" Right for Moving About Freely at Home and Abroad;
" Right for Free Elections and Personal Secret Ballot;
" Right for Working in Callings and Localities of Our Choice;
" Right for Bargaining with our Employers and Employees;
" Right for Going into Business, Compete, Make a Profit;
" Right for Bargaining for Goods and Services in a Free Market;
" Right for the Service of Government as a Protector and
Referee;
" Right for Freedom from Arbitrary Government Regulation and
Control;
And finally for encouraging and supporting ALL the aforementioned

principles, Ë quotes the following:
"The Creative Law is that the quality of THOUGHT, which starts any
particular chain of cause and effect, continues through every link of
the chain, and therefore, if the originating thought be that of the
absolute goodness-in-itself of the intended creation, irrespective of all
circumstances, then this quality will be inherent not only in the thing
immediately created but also in the whole incalculable series of
results flowing from it. Therefore, to make our work GOOD FOR ITS

OWN SAKE is the surest way to make it return to us in a rich harvest,
which it will do by a natural law of growth, if we only allow IT to
grow." T. Troward
7. The Trustees may hold and conduct meetings at such times and at
such places as best suits the Trustees convenience serves the best
interest of the charitable organization; and
8. At such meetings where all official business will be conducted, a

majority of the Trustees shall be present and participating in the
meeting; and
9. Affirmative actions shall require the approval of the majority of the

Board of Trustees; and
10. Any Trustee objecting for any minute for any reason should also sign,
but after the Trustee's name write in the word, Dissent and the minute
number; and
11. That, all primary directional minutes shall be approved as evidenced

by the signature of a majority of the Board of: Trustees; and
12. Pursuant the Trust Agreement the Trustees for practical reasons
beneficial for Ë Foundation hereby nominates, unanimously elect, and
appoint the above Trustees as the Trustee(s) of Ë Foundation and for
holding the office of Trustee for life; and
13. That, the Annual Meeting of the Board of Trustees will be held on
__________ day of _______________________ and on the same day
of each succeeding year, at a time and at such location as may be most
convenient for a Majority of the Board of Trustees; and
14. That, the fiscal year of Ë Foundation will be the calendar year, and
pursuant the tax laws governing Private Foundations the Trustees
herein shall file Internal Revenue Form 990PF annually; and
15. That, ANY and ALL inquiries of whatsoever nature from whatever
source that may be directed for ANY of the Trustees, either
individually or collectively, BE committed for writing by the

INQUIRER and submitted for the Board of: Trustees for processing
at the next scheduled meeting of the Board of Trustees; and
16. That, Ë Foundation, being a private organization being created by

contract within the family, places such private and fiduciary
responsibilities on Ë Foundation Trustees and agents that any Trust
acts, duties, tasks, and functions assigned by the Trustees for Trustees
and agents in the service of Ë Foundation CAN IN NO WAY be
construed as the practice of law; and
17. That, all minutes of Ë Foundation are inviolable, i.e., Ë Foundation

minutes are absolutely private and the minutes are not for loaning,
borrowing, reading and disclosing by anyone and moreover, all
minutes are beyond the purview of any individuals, persons, entities,
and parties other than the Trustees and the Trustees for Ë Foundation
have all the power necessary for carrying out the trustees duties
responsibilities, for not subjecting the books and records for review
by, individuals, persons, entities, and parties, and anything and anyone
unless authorized by the Trustees; and
18. That, the services of the Executive Trustee of Ë Foundation and

Executive Secretary of Ë Foundation, are hereby contracted, per the
provisions of the Employment Contract dated:
____________________which is made a part hereof by reference
thereto from the date and for life by Ë Foundation, subject, however,
for an annual review of a majority of the Board of: Trustees for the
competency of the above named parties and if judged for being
incompetent for any valid reason whatsoever by a majority of the
Board of Trustees shall step aside and yield the office of Trustee for
the party appointed and elected successor; and
THE CONTRACTS in consideration of services rendered for Ë

Foundation, include the following incidents, and in such times as
required said incidents may be adjusted, expanded, and deleted as may
be expedient and in the best interests of Ë Foundation, by affirmative
action of a majority of the Board of Trustees:
" ALL transportation expense incidents for ALL Foundation

business.
" ALL traveling expense incidents for ALL Foundation business.

" ALL office expense incidents for ALL Foundation business.
" ALL dues, fees, and subscriptions incident for ALL Foundation
business.
" ALL convention and meeting expense incident for ALL
Foundation business.
" Adequate life insurance and insurance for covering cost of
medical care for the above- named persons;
" A reasonable, monthly, consultant's fee for the above-named
parties which is income for the recipient;
19. The prime responsibility of the Board of: Trustees is for managing Ë
Foundation, business and corpus in such a manner as for carrying out
Ë Foundation charitable functions and for insuring predominate
consideration for the welfare of the Beneficiary as enumerated in
section 501(c)(3) of the Internal Revenue Code and, the Board of:
Trustees first duty, one for another, is for carrying out the mandate
and is expected and hereby declared inviolate, that as Trustees of Ë
Foundation resign, retire, succumb and are removed, as the case may
be, the Trustees places will be filled on the Board of Trustees,
PREFERABLY by and from succeeding generations of blood
relatives of the Founder of Ë Foundation, and the successor Trustees
issue, as soon as the successor becomes eligible for Trusteeship from
the standpoint of legal age, mental competency, and the successor's
individual acceptance, acknowledgment, and understanding of the
purpose of the Foundation and the true thrust and mission of the
family organization; and
20. That, the Trustees DID on the date execute a Bank Resolution Minute,
designating the ______________________________Bank
______________________________________________Address
____________________________________________State, as one
of the depositories of Ë Foundation making a duplicate with
signatures, one for the bank and one for being placed in Ë
Foundation's book; and
21. In order that a systematic and customary procedure be maintained in

the area of holding meetings for Ë Foundation the Trustees hereby
agree upon the following guidelines:
a. REGULAR FAMILY MEETINGS — these will be meetings

held in accordance with the rule of Trustee's Meetings in the
Trust Agreement of THE FOUNDATION, on a fairly regularly
basis, at least once a month or more often if there are items of
business to bring before this Board. A majority of the voting
members may call a meeting anytime.
Agenda for Regular Meetings:
1. Examination of the minutes from the previous meeting,

unless waived by the Trustees present.
2. Financial report and discussion of the current financial
picture.
3. Review of any unfinished business and on-going projects
by the Trustee assigned for its responsibility.
4. Presentation of new undertakings and items of business
and the selection of a Trustee who will be answerable
and in charge of implementing the decisions of the
Board for each item and activity.
5. Based upon the "MISSION STATEMENT" of the
Foundation, some time will be spent in envisioning the
long range possibilities for accomplishment (e.g. what
will this Foundation have completed in 5 years? What
would happen if the Foundation had 10x the resources)?
In other words, each regular meeting should have a
period dedicated for setting and reviewing new and
current goals.
b. EMERGENCY FAMILY MEETING — a meeting called as

a result of a special circumstance and need, something that
could cause harm and any type of loss if immediate attention is
not given to this situation, so urgent that it cannot wait for
inclusion at a regular meeting.
Agenda for Emergency Meetings:
1. Reporting what the nature and details of the emergency

was and is.
2. Action that was taken and the suggested plan of
proceeding and when the matter will be disposed of and
require further attention of the Board.

3. Ratify the discussion and consensus of opinion, and
establish which Trustee will be responsible for
implementing the adjudication by the Board.
c. ANNUAL FAMILY FOUNDATION MEETING - as

provided in minute 13 of this meeting, it is a once a year
scheduled meeting for the ______________________ day of
__________________________each year.
1. Recognition of those who have served and represented

the Foundation by adding to its ability to accomplish all
the charitable things it has done the past year.
2. Receive reports from the Executive Trustee, and any
other Trustees and Agents wishing to recount their
observations of the Foundation's achievements to date
and the desires and visions for the coming year. The
"MISSION STATEMENT" should be the guiding theme
that is the fabric which models and guides this charitable
organization.
In accordance with minutes 7, 8,9,10 and 11, and there being no further business
come before the meeting, on motion duly made, seconded, and carried, the meeting
adjourned.
______________________________ Trustee Date: ___________

Ë
______________________________ Trustee Date: ___________

Ë

BANK RESOLUTION
Ë FOUNDATION
Ë
Ë
EIN: ËË Date: ______________
Upon motion duly made and seconded,
RESOLVED, that the funds of the Ë Foundation shall be deposited with
________________________________________________________, Bank,
located at:
________________________________________________________; and
RESOLVED FURTHER, that the Treasurer of the Ë Foundation be and hereby

is authorized and directed for establishing an account with the said bank and for
depositing the funds of the Ë Foundation therein; and
RESOLVED FURTHER, that any trustee, officer, employee and agent of the Ë
Foundation be and is authorized for endorsing checks, drafts and other evidences
of indebtedness made payable for the Ë Foundation and only for the purpose of
deposit; and
RESOLVED FURTHER, that all checks, drafts and other instruments obligating
the Ë Foundation for the payment of money shall be signed on behalf of the Ë
Foundation by any trustee of the following:
______________________________ Trustee
Ë
______________________________ Trustee
Ë

Ë FOUNDATION
Ë, Trustee
Ë, Trustee
RESOLVED FURTHER, that said bank be and hereby is authorized for honoring
and paying all checks and drafts of the Ë Foundation signed as provided herein.
RESOLVED FURTHER, that the authority hereby conferred shall remain in force
until revoked by the Board of: Trustees of the Ë Foundation and until written notice
of such revocation shall have been received by said bank.
RESOLVED FURTHER, that the Secretary of the Ë Foundation be and hereby

is authorized for certifying for the continuing authority of the resolution, the
persons authorized for signature on behalf of the Ë Foundation and the adoption of
said bank's standard form of resolution provided that said form does not vary
materially from the terms of the foregoing resolutions.
______________________________ Trustee
Ë
______________________________ Trustee
Ë

REPORTS
The Publications listed below are only a few of what might be required for your
Mission specific private foundation. Please download the appropriate Publication
from the Internal revenue Service web site to ensure you get the latest revised and
updated information.
Publication 526, Charitable Contributions (23 pages):

http://www.irs.gov/pub/irs-pdf/p526.pdf
Publication 598, Tax Information for Private Foundations and Foundation Managers (22 pages):
Publication 3833, Disaster Relief (32 pages):

Publication 1771, Charitable Contributions - Substantiation and Disclosure Requirements (16

pages):
Publication 557, Tax - Exempt Status for Your Organization (72 pages):
Publication 561, Determining the Value of Donated Property (15 pages):

Council on Foundation:
http://www.cof.org/
and other related information such as:
Family Foundations & the Law by John A. Edie (a MUST HAVE reference book)
https://personify-web.cof.org/EbusPPROD/OnlineStore/ProductDetail/tabid/55/Defaul
t.aspx?ProductId=5232
List Pricing: $59.00 COF Members: $35.00
Please review the GUIDE TO PHILANTHROPIC RESOURCES (January 2007)

included for additional resources.
A Brief History of Foundations Depression but revived after World War II.
The rate of community foundation
The concept of private philanthropy dates formation increased dramatically after the
back to ancient times. Legal provisions for Tax Reform Act of 1969.
charitable funds (the forerunner of United
States foundations) were first established in Overall the twentieth century was a time of
England in the 1600s. tremendous growth for the foundation field
as well as a century of innovation. A legal
Most early foundations were established for and regulatory framework for the field was
the benefit of an institution or to respond to created, and an infrastructure grew up
specific social needs. "General purpose around it.
foundations" began to emerge in the United
States in the twentieth century. These For additional information on the history of
foundations, exemplified by the Carnegie foundations, see the following links:
Corporation of New York and the -- Foundation Fundamentals on the Online
Rockefeller Foundation, had large Bookshelf
endowments and broad charters enabling
them to address major social problems. http://fdncenter.org/learn/bookshelf/ff/sum
mary.html
American foundations began to attract
congressional scrutiny soon after the -- An Abbreviated History of the
Carnegie and Rockefeller foundations were Philanthropic Tradition in the United States
created, but no new legislation resulted until
the 1960s. The passage of the Tax Reform http://www.cof.org/whatis/history/index.ht
Act of 1969 provided a completely new m
legal and regulatory framework for private
foundations.
-- History of the American Association of
The creation of private foundations declined Fund Raising Counsel
sharply in the 1970s, but the 1980s and
1990s saw renewed growth in private http://www.aafrc.org/history.html
foundation establishment.
Corporate foundations are a more recent

phenomenon. Although corporate We are located at:
contributions go back to the 1870s, there
were few corporate foundations prior to
World War II. Higher corporate tax rates in
the 1950s led to a boom decade for the
creation of new corporate foundations. This
boom slowed in the 1970s, but the late
1970s and the 1980s saw substantial growth
in corporate foundations.
The community foundation movement dates
back to the early twentieth century with the
establishment of the Cleveland Foundation
in 1914. The movement slowed during the
Getting the Most from your Family Foundation — Page 1 of 7.

Getting the Most From Your Foundation Retreat
How to orchestrate an effective offsite retreat without breaking the bank.

Your foundation is getting everyone out of planning, for instance — but a great
the board room to dream up the next big offsite retreat leaves board members
charitable idea and you are in charge. feeling better about the foundation, their
Before you begin planning, focus on your work, and each other. Here's how to make
goal Sure, there's work to be done — sure you take care of business and morale.
training or strategic
How Big, How Long, and How Much?

First things first: Decide the size and scope of your retreat. Are you whisking the grant-making
team away for an afternoon of brainstorming or are you thinking more of a week long full-staff
re-examination of your foundation's mission and goals? Get a fix on details. How many family
members are coming? How many family members are qualified to come? How do you envision
your program, leisure activities, and meals?
Will you need presentation aids, projector, screen? Pencils and paper?
Once you've mapped out your vision, prepare a budget. It should include estimates for site
expenses, staff, meals, equipment, travel, shipping, office supplies, guest rooms, and speaker
fees. Keep in mind that service charges and taxes can add 25 percent to your bill. Meeting
planners recommend Corbin Ball's tip sheet at www.corbinball.com, which has a free meeting-
planning calendar, budget calculator, expense-tracking worksheet, and other useful tools.
Choosing the Right Site
Start by preparing a "one-sheet," which should include your preferred dates, headcount, and
sequence of events. You'll submit your one-sheet to facilities to get their bids. Begin scouting at
Mpoint (www.mpoint.com), a comprehensive on-line directory of meeting sites. As you look,
remember that experienced meeting planners focus on the "Four A's":
Availability:
Make sure there's plenty of room and avoid too tight a fit: The facility has to be able to
accommodate you if your group suddenly grows. And when you lock in on a site you like,
remember to ask what other groups will be there. You don't want to find that your foundation
meeting is distracted with loud or boisterous groups down the hall.

Accessibility:
Be sure there is sufficient access such as parking, and any special needs — like wheelchair
ramps. Also consider less obvious issues: Bathroom needs, breaks, water, etc.
Affordability:
Hotels tend to beat conference centers on atmosphere, but every little extra will cost you. Most
hotels price each item a la carte with a sky-high markup. Conference centers, on the other hand,
offer all-inclusive meeting packages.
Ambience:
If possible inspect your site before signing a contract. Is the facility's decor pleasant or
depressingly dated? Check out sight lines in the meeting rooms. Take a peek at food presentation
and note whether the staff is courteous or surly. Meet the conference manager; this will be your
main contact once you've made a choice.
Whittling Down the Price

Depending on how grand your plans are, you'll spend a proportionate amount of time preparing
anywhere from a couple of hours to many multiples of that. Generally, the bigger your group and
the longer your stay, the more bargaining power you'll enjoy. You can save thousands if you
know how to work the angles.
Avoid fancy chain hotels

The big chains tend to cost about 20 percent more than independents, while conference centers
usually fit somewhere in between. Another advantage of independents is that they're more willing
to negotiate. The exceptions are boutique hotels, which can be pricier than many chains.
Timing counts.
Weekends will cost more than midweek, and early in the week- Monday, Tuesday, and
Wednesday- can be less expensive than Thursday and Friday. You'll pay top dollar during high
season; avoid ski resorts during the holidays.
Get some guest rooms computation comparisons.

Most hotels- chain or independent- will comp at least one overnight stay for every 50 in your
contract. It's also standard for hotels to comp rooms for the meeting planner, key executives, and
meeting sponsors. But you have to ask.
Don't pay for conference rooms.

If you're already paying for guest rooms, food, and beverages, many hotels will comp the meeting
space.

Little extras shouldn't cost you.
Ask the hotel to throw in an onsite office, easels, coffee and snacks, coat check, parking, and
phone lines.
Get outside bids.

Independent services might give you a better price on A/V equipment, for example, if you have
a lower bid in hand, chances are the facility will match it.
THE PROGRAM
Focusing on why you're holding the retreat will help you build the right program. If the point is
to share information like research or communicate a new foundation direction, you're safe with
a program that emphasizes a speaker-and-audience format. If the retreat is all about
brainstorming, however, you should limit the one-person-speaking-to-many setup to an
introductory session in which you set out goals and ground rules, and then divide into smaller
groups to unlock everyone's creativity. (Junior board members, for example, will find it easier
to speak their minds if the entire board isn't staring down from the dais.) Break down barriers by
varying the leadership within the groups: Let junior members guide discussions, even when the
voting members are taking part. Smaller groups are ideal if specialized training is the goal. Your
foundation board and staff members will pick up skills more quickly if they have one-on-one
attention and they're comfortable asking questions.
Meeting planners recommend that you vary the timing of your program- not every session has
to last an hour. And don't skimp on break time, advises Daphne Meyers, a program manager for
Microsoft in Fargo, N.D. She's found that 30 minutes between sessions works well for large
groups; that allows plenty of time for bathroom breaks, phone calls, and socializing. "The extra
10 minutes on that break can make a big difference," she says. For smaller groups, 15 or 20
minutes should suffice. And don't race your group through lunch; while one hour is standard, two
hours gives people time to eat, mingle, and check in with the office. Meyers advises forgoing a
lunch speaker: "You might as well give people a box lunch and send them back into the
conference room." And most planners suggest limiting your workday to six hours.
Ground Rules
You finally have your foundation together for the rare opportunity to focus on solving a problem
or dreaming up a new strategy. You want the discussion to be candid, without fear of rejection
or reprisal. To ensure that you're hearing everyone's best thinking, the pros suggest you open with
some guidelines. Here are the ones recommended by Keith Yamashita of Stone Yamashita in San
Francisco.

BLURT. Don't edit yourself. Don't compare yourself with your peers. Don't worry about what
others will think.
GENERATE. Don't evaluate. Don't worry much about pragmatism-yet.
BUILD. Don't "swoop and poop" on others' ideas; add to them or redirect them rather than
shooting them down.
THINK THE UNTHINKABLE. Don't hesitate to defy conventional wisdom or even your own
standard ways of thinking.
Playtime
You've brought the family together to strategize, but you also want to build morale and team
spirit. How? Meeting planners say you need to find ways to put the entire group, from executive
trustees to junior board members, on a level playing field and offer them opportunities to perform
well.
Start by getting everyone out of the meeting room. Volleyball, soccer, softball, basketball- even
a game of paint-ball can foster teamwork. Corny as they seem, scavenger hunts and blind trust
walks can help dissolve preconceptions, especially if a junior member of the group is chosen to
lead the activity. If you're looking to break up cliques, a round-robin meal where members
change seats between courses is a simple but effective internal networking device. Finally,
encourage family members to do something they consider a bit crazy, whether it's rock climbing,
swing dancing, or competing in a chili cook-off. And don't save these activities for the end of the
retreat: You want to work them into the program so your board members bring their newfound
comfort with one another back into your work sessions. "You get a lot of camaraderie when you
get people playing together," says Julie Panaccione, Men's Wearhouse vice president for
corporate culture. "And people are a lot more creative when they're relaxed." They-and your
foundation-will reap the rewards.
What is a Family Retreat?
Family Foundation retreats are useful-and often significant-activities in a family foundations

development. To be successful, the retreat must be thoughtfully planned and carefully executed.
If the goals of the retreat are established and clarified at the outset, there is a greater chance the
retreat will advance the family foundation's work and result in more effective philanthropy.
Fact: A family foundation retreat offers an opportunity for members to spend more time
together.
Fact: A family foundation retreat is usually held in a location that allows for recreation or
leisure activities.

Fact: A family foundation retreat is an effective way to plan for the future, review the
foundation's core mission and purpose, examine the grant making program in depth and
assess the family's values in relation to the charitable work.
Fact: A family foundation retreat can be a useful tool in allowing a family conflict to be
articulated so that the discussion can restore consensus.
Fact: A family foundation retreat is not confined to time restrictions therefore allowing time
to talk issues out.
A family foundation retreat contributes to good stewardship. Stewardship is a higher form of

ownership. It requires Accountability, Responsibility and Trust.
Most board meetings are hurried affairs, consumed with immediate business involving asset
management, grant-making decisions, and administrative decisions. Stewardship is a larger
responsibility. It involves reflection and direction based on mission and purpose.
The following stories and testimonials are from members of The Council on Foundations and
contributors to the family foundation community. If you would like to share your story with
others please fax: 877-874-7017 or email: info@myprivatefoundation.com.
In recent years, our foundation has become more focused on our own style of philanthropy. We
enjoy stimulating the same entrepreneurship in organizations that we profited by in business. For
us, the innovative, the creative and the bold offer some new direction in education, arts, science,
and human services.
As my wife and I became more comfortable with our own role in the foundation, I began to
realize the benefit that this entity could have on our children. Each brings a special insight and
talent that can serve our foundation well. I never cease to marvel at how much my kids have to
say when I stop talking.
I thought that, when I began to withdraw from my active business life, I would have endless
hours of rest and relaxation, and feared that I would suffer boredom and indifference. My
involvement in philanthropy, including my own foundation and many of the organizations we
chose to support, has immersed me in a new and challenging world. I am busier than ever, using
my skills and experience, and learning as I go.
Establishing and running a family foundation is not for those easily bothered by rules and
regulations. On the other hand, for those who enjoy giving to others, who like to see the effect
of caring on one's own children and grandchildren, and who want to leave a legacy for the future,
then I welcome you to the world of philanthropy and the family foundation.
George N. Boone, Boone Family Foundation, San Marino, California
Philanthropy was not a tradition in my family of origin, so it was important for me to create an
institutional structure my children could identify with. I find family business partnerships often
result in conflict; family philanthropy often brings us closer together. Each family member is
encouraged to pursue their own passions, to be engaged, and to experience what it's like to be the
asker as well as the giver.

Swanee Hunt, The Hunt Alternatives Fund, Denver, Colorado
In1994 we recognized that our four daughters had developed an interest in the foundation. We
brought them onto the board and began their training. Attending foundation training sessions and
conferences have given them excellent broad and specific training in the business of responsible,
creative philanthropy. We quickly realized that to coordinate board meetings with these training
meetings is very effective scheduling for our family. We extend our stay at the conference site
one or two days; focused board work is done expeditiously without the distractions of every day
life.
We believe that involving the next two generations while the founders are still active will
hopefully, pass our vision on to the young people of the family. Participation of our daughters
and their children (on a associate level) has become a forum for building closer family ties and
forming cooperative interests and projects. Our daughters and their families live in four different
parts of the country. Each has interests and philanthropic concerns where she is. We decided to
give each of our daughter's families ten percent of the annual grant funds to use for those needing
assistance in their respective communities. Our daughters are now encouraging their older
children to be involved in grant research where they live. Our grandchildren, through the ten
percent allotment of their mothers, have begun to learn what responsive, responsible philanthropy
is.
The balance (sixty percent) of the grant funds are used for support of the organizations which
have been major interests of the founders over the years. Each grant request stands on its own
merit as decided by the board. All board members are involved in reviewing grant requests and
have an opportunity to approve or disapprove the grant.
Our city, state, educational institutions, museums, hospitals and church have enriched the quality
of our lives. It was a very natural decision to attempt to give back a small measure of the
goodness that we and our children have received for so many years. As a family we have grown
close, become more sensitive to the needs of others and are learning new concepts daily as we
seek to be good stewards of our blessings.
Guy F. Lipscomb, Lipscomb Family Foundation, Columbia, South Carolina
Our foundation started really as a corporation foundation for the purpose of "smoothing out" our
donations in the community. After the momentous tax change in 1969 the foundation was
restructured and operated as a family foundation. This was strictly a one-generation operation
for a number of years, but when our children became interested and started contributing to the
foundation we expanded to a two- generation style.
Just last June (1995), we drastically revised our by-laws and now we have third generation
members. Now they too are becoming interested, and some will soon enjoy Board of Trustees
as well as member status.
Charles T. Beaird, Charles T. Beaird Foundation, Shreveport, Louisiana
"Everyone can be great because everyone can serve.", Martin Luther King Jr.

The following pages
contain all of your
I.R.S. Compliance
Documents.
Follow the instructions
CAREFULLY!
Some pages MUST be removed before mailing the
package to the IRS.
BUILDING FOUNDATIONS FOR FAMILIES Page 1 of 2.
1023 FILL IN FORM

FOUNDATION NAME: Ë
EIN: Ë Date Funded: Ë Ë, Ë Amount: $
NAMES, ADDRESSES, AND RELATIONSHIP OF TRUSTEES
County: ËË
Name: Ë Relationship: Founder / Co-trustee
Address: ËË, ËË
Name: Ë Relationship: Founder / Co-trustee
Address: ËË, ËË
Name Relationship
Address
(Relationship: Mother, Husband, Son, Associate, etc.)
MISSION STATEMENT:
Phone No: Email
Fax No. Other
[Remove this page --- not to be included with your package to the IRS.]
BUILDING FOUNDATIONS FOR FAMILIES Page 2 of 2.
If in existence less than 1 year provide PROJECTIONS of your likely revenues for the current
year and the 2 following years, based on a good faith estimate of your future finances for a total
of 3 years.
Projected gifts, grants, and contributions RECEIVED, current and two following tax years.
Current Year 2nd Year
3rd Year
Projected gross investment return on investment assets.
Current Year 2nd Year
3rd Year
Professional fees PROJECTED.
Current $ 500.00 2nd Year $ 500.00
3rd Year $ 500.00
Please fill in and return at the workshop, by email:
Ë Foundation Page 1 of 2.
EIN: Ë
To: Ë, Trustee
Ë Foundation
RE: IRS Form 1023 & Attachments
Enclosed you will find your completed 1023 with the required
attachments. You will also find a completed "Form 1023 Checklist"
related to the IRS 1023 Form.
The "Form 1023 Checklist" is the cover page for all of your
foundation documents and is to be included with all submitted
documents.
Look over these documents, sign where required, enclose a check

for the fee checked in box 2/3 on page 12 made out to the United States
Treasury and send the entire package to the address (below) identified on
the "Form 1023 Checklist". DON'T FORGET TO ENCLOSE A
COPY OF YOUR SIGNED TRUST AGREEMENT.
Make a photocopy of the 1023 and all attachments and insert them
in your trust binder under "Compliance Documents" tab.
Internal Revenue Service

P.O. Box 12192
Covington, KY 41012-0192
Thank You,
EIN: Ë
Here is your IRS Form 1023 completed as far as can be completed

without your personal and finishing input.
Pages 1 & 2 are updates and important but not sent to the IRS.
Your package should look like this when prepared to send to the IRS:
1. The IRS wants to see is the 2 page Checklist on top.
2. Followed by the 26 page IRS Form 1023. Make sure to fill out
pages 9 & 10 with your financial data. Sign page 12 and type or
write in the amount of FEES you're including. DO NOT STAPLE
YOUR CHECK TO THE APPLICATION, merely drop it into the
package. Read the checklist.
3. A copy of your 6 page Trust Agreement is next.
4. Insert the 25 pages of supporting documents behind your Trust.

Make sure the copy Trust Agreement was signed and notarized.
5. Finally, include a copy of the 17 page Gift Acceptance Policy.
For your help, a copy of how to fill out the financial data is included.
You should only have to complete what is highlighted in blue.
Please contact the office if you have any questions not covered in this
handout.
Should be a total of 76 pages being sent to the IRS.
Insert
the
I.R.S. Form 1023
here.
Four pages, entitled the "financial data" instructions were inserted
between Pages 8 and 9 of the Form 1023 for your assistance.
CAUTION: Remove the "financial data" instruction

pages BEFORE mailing your completed compliance
package to the I.R.S.
"Financial Data Instruction Sheets"
Instructions for Preparing Financial Data
for Your 501(c)(3) Application
What Financial Information is Needed?
The 501(c)(3) application asks for three kinds of financial data:
1. Statement(s) of Revenue and Expenditures;

2. Balance Sheet; and
3. Projected Budget.
A worksheet for each type of financial data is attached, with brief instructions.
How Does the IRS Use this Financial Data?
IRS agents use the financial data in the 501(c)(3) application for many purposes:
1. To flesh out the narrative description of the organization's activities.

2. To identify unrelated business income, lobbying, excess benefits, and other
taxable activities/events.
3. To uncover improper benefits to insiders, political expenditures and other
disqualifying activities/events.
4. To determine the organization's correct 990 filing requirement.
5. To decide if the organization has paid the correct User Fee.
6. If the organization is filing more than 27 months after the end of the month
formed, to determine if the low gross receipts exception to the filing deadline
applies.
7. To determine if the group is publicly supported.
KEEP IN MIND that the fee the IRS will charge for processing your 501(c) (3)
application is based on the financial data/projected budget. If actual or projected
income is, or will be, more than $10,000 per year, the IRS will charge a one time
User Fee of $750, instead of $300. The IRS does not currently have any follow-
up procedures to see if your predictions are accurate, but your projections must
be consistent with your description of your planned activities.
[Remove this and the 3 next pages --- not to be included with your package to the IRS.]
Financial Data help sheet — Page 1 of 4.

Statement of Revenue and Expenditures
The Statement of Revenues and Expenditures, also known as an income statement,

or P & L (profit & loss), summarizes your organization's financial activity over a
given period of time, usually a year.
If your group has budget forms or treasurer's reports that it already uses, or if you
use a financial software program that provides suitable statements, feel free to use
those, as long as the information provided includes income and expenses, is
classified (broken down by type of income and type of expense, rather than lumped
together) and shows total amounts.
In theory, the IRS must have financial statements for every year your organization
has been in existence. Do not overlook your very first year. Unless your
organization was established on the first day of your chosen accounting period,
your first year was probably less than 12 months. If your group had no financial
activity at all for a given period, prepare a statement showing all zeroes.
If your organization has received donated goods, such as office supplies or postage,
show the value of these items in your financial statement as both contribution
income and a related expense. Do not include volunteer services or the value of
facilities donated to your group in your financial statement.
A worksheet you may use is attached. Make extra copies for multiple years. Make
sure to label all financial statements clearly showing the dates covered.
You will need:
1. Statements showing actual revenue and expenditures for every completed year
your organization has been in existence, and for which your organization is seeking
tax exempt status. You may put two or three years in several columns on one sheet
if that is convenient. If your group has been in existence less than one year, skip
this. If your group has been in existence more than three years, provide only the
three most recent years. (Note that some IRS agents will ask for more than this.)
2. One statement showing actual revenue and expenditures for the current year.
This statement will probably not cover a full year. Start with the beginning date of
your organization's fiscal year (or the date the organization was created), and end
on the last day of a recent month. For example, if today were June 15th, this
statement might end May 31st or April 30th.

Balance Sheet
While the Statement of Revenues and Expenditures summarizes financial activity

over a period of time, the balance sheet takes a snapshot of the organization's
finances on a particular given date. You list everything that the organization owns
and owes on that specific date.
If your group has a balance sheet form or treasurer's report that it already uses, or
if you use a financial software program that provides a balance sheet, feel free to
use those.
The IRS prefers that you use the last day of a month for your balance sheet. The
date you use should be recent.
A worksheet you may use is attached. Make sure to label all financial statements
clearly showing the dates covered. Do not provide a projected" balance sheet.
You will need:
One balance sheet showing everything the organization owned and owed as of the
end of a recent month. If possible, make your balance sheet correspond to the
ending date you have used for the current year Statement of Revenues and
Expenditures. Make sure to label the balance sheet clearly with the date.
Projected Budget
The Statement of Revenues and Expenditures and Balance Sheet described above
should reflect your organization's actual financial activity to date. In many
instances, the IRS also wants a budget or financial projection - your best estimate
of what your organization's income and outlay are likely to be in coming years.
Many organizations feel their circumstances make it too difficult to predict what
the financial future holds. Needless to say, the IRS will require a budget anyway.
The most important thing is to make a good faith effort to predict your
organization's revenue and expenses. The IRS will not penalize you for guessing
incorrectly. There are several ways you can approach budgeting:
Some organizations find it works best to start with the objectives the group wants
to accomplish, estimating goal by goal what the planned activities will cost, and
then creating a strategy to come up with the necessary income.

For other organizations, it makes more sense to start with projected income when
budgeting. For instance, a membership group can estimate the number of people
who might join, as well as the amount of dues folks might be willing to pay. Once
you figure out how much the organization might be able to raise, decide what your
priorities will be in spending it.
When an organization has operated for any period of time, another approach to the
budget is available. Choose a month (or quarter) that is representative of how the
organization is likely to operate in the future. Take that month, and multiply by
twelve (four if you are using data from a quarter). Depending on your
circumstances, you might want to adjust your figures up or down to allow for
growth or shifting priorities for future years.
Still another approach is based on operating units. Begin the budgeting process by
having each committee or program unit draw up its own budget. Combine the
various program areas and set priorities to arrive at an organization-wide budget.
A worksheet you may use for your projected budget appears on the next page.
Make sure to label all financial statements clearly.
You will need:
1. One statement projecting revenue and expenditures for the balance of the current
year. Start immediately after the current statement showing actual revenue and
expenditures (above) ends. End on the last day of your group's normal accounting
period. Label this and all financial statements clearly with the period of time
covered.
2. One statement projecting revenue and expenditures for the two years following
the statement you prepared for #1 above. These will be years that have not yet
started. Again, label the projected budget clearly. Although the instructions for
Form 1023 do not require projections if you can provide three years of actual data,
it is not unusual for the IRS to request budget information anyway. Take the time
to prepare and submit a projected budget.
Remember to remove the "financial data" instruction

pages BEFORE mailing your completed compliance
package to the I.R.S.

TRUST AGREEMENT
THIS AGREEMENT, creating the Ë Foundation, is made in the City of Ë, State of Ë, this
Ë day of Ë, Ë, between Ë, Founder/Co-Trustee and Ë, Co-Trustee, hereinafter collectively
referred to as the Trustees.
The Founder, Ë, hereby transfers property to the Trustees, and the Trustees hereby declare
and agree that they have received this day from Ë as Donor, the sum of Ten United States Federal
Reserve Dollars ($10.00) and that they will hold and manage the same and any additions to it in
trust, as follows:
Article I
The name of this Trust shall be the "Ë Foundation".
Article II
The Ë Foundation is created exclusively for charitable, religious, scientific, literary and
educational purposes, including, for such purposes, the making of distributions to organizations
that qualify as exempt organizations under section 501(c)(3) of the Internal Revenue Code.
Article III
The Trustees may receive and accept property, whether real, personal, or mixed, by way
of gift, bequest, devise, from any person, firm, trust, or corporation, to be held, administered, and
disposed of in accordance with and pursuant to the provisions of this Trust Agreement; but no
gift, bequest or devise of any such property shall be received and accepted if it is conditioned or
limited in such manner (a) as to require the disposition of the income or its principal to any
person or organization other than a "charitable organization" or for other than "charitable
purposes" within the meaning of such terms as defined in paragraphs (h) and (i) of Article VI of
this Trust Agreement, or (b) as shall in the opinion of the Trustees, jeopardize the federal income
tax exemption of the Ë Foundation pursuant to section 501(c)(3) of the Internal Revenue Code
(or the corresponding provision of any future United States Internal Revenue Law).
Article IV
(a) The principal and income of all property received and accepted by the Trustees to be
administered under this Trust Agreement shall be held in trust by them, and the Trustees may
make payments or distributions from income or principal, or both, to or for the benefit of such
one or more organizations that qualify as exempt organizations under section 501(c)(3) of the
Internal Revenue Code (or the corresponding provision of any future United States Internal
Revenue Law), as the Trustees shall from time to time determine; and the Trustees may make
payments or distributions from income or principal, or both, directly for the charitable purposes
of the Ë Foundation, as defined in paragraph (i) of Article VI, as the Trustees shall from time to
time determine.
(b) Income or principal derived from contributions by corporations shall be distributed
Ë FOUNDATION (Copy to IRS) Page 1 of 6 .

by the Trustees for use solely within the United States or its possessions.
(c) No part of the net earnings of the Ë Foundation shall inure or be payable to or for the
benefit of any private individual, and no substantial part of the activities of the Ë Foundation
shall be carrying on of propaganda, or otherwise attempting, to influence legislation.
(d) No part of the activities of the Ë Foundation shall be the participation in, or
intervention in (including the publishing or distributing of statements), any political campaign
on behalf of any candidate for public office.
(e) The Trustees shall distribute the income of the Ë Foundation for each tax year at such
time and in such manner as not to become subject to the tax on undistributed income imposed
by section 4942 of the Internal Revenue Code (or the corresponding provision of any future
United States Internal Revenue Law). Further, the Trustees shall not engage in any act of self-
dealing as defined in section 4941(d) of the Internal Revenue Code (or the corresponding
provision of any future United States Internal Revenue Law) nor retain any excess business
holdings as defined in section 4943(c) of the Internal Revenue Code (or the corresponding
provision of any future United States Internal Revenue Law), nor make any investments in such
manner as to incur tax liability under section 4944 of the Internal Revenue (or the corresponding
provision of any future United States Internal Revenue Law), nor make any taxable expenditure
as defined in section 4945(d) of the Internal Revenue Code (or the corresponding provision of
any future United States Internal Revenue Law).
Article V
This Trust Agreement may be amended at any time or times by written instrument or
instruments signed and acknowledged by the Trustees, provided that no amendment shall
authorize the Trustees to conduct the affairs of the Ë Foundation in any manner or for any
purpose contrary to the provisions of section 501(c)(3) of the Internal Revenue Code (or the
corresponding provision of any future United States Internal Revenue Law). An amendment of
the provisions of this Article V (or any amendment to it) shall be valid only if and to the extent
that such amendment further restricts the Trustees' amending power. All instruments amending
this Trust Agreement shall be noted upon or kept attached to the executed original of this Trust
Agreement held by the Trustees.
Article VI
(a) Any Trustee under this Trust Agreement may, by written instrument, signed and
acknowledged, resign his office. The number of Trustees shall be at all times not less than two,
and whenever for any reason the number is reduced below two, there shall be, and at any other
time there may be, appointed one or more additional Trustees. Appointments shall be made by
the Trustee or Trustees for the time in office by written instruments signed and acknowledged.
(b) Upon any change in any trusteeship hereunder, the continuing Trustee or the next
successor Trustee or Trustees, as the case may be, shall have all of the powers, authorities, rights,
discretions, immunities, estates, titles, duties and obligations of the original Trustees, without the
necessity of any conveyance or the taking of any action whatsoever.
(c) None of the Trustees shall be required to furnish any bond or surety. None of them

shall be responsible or liable for the acts or omissions of any other of the Trustees or of any
predecessor or of a custodian, agent, depository or counsel selected with reasonable care.
(d) The Trustee or Trustees from time to time in office shall have full authority to act
even though one or more vacancies may exist. A Trustee may, by appropriate written instrument,
delegate all or any part of his powers to another or others of the Trustees for such periods and
subject to such conditions as such delegating Trustee may determine.
(e) The Trustees serving under this Agreement are authorized to pay to themselves
amounts for reasonable expenses incurred and reasonable compensation for services rendered in
the administration of the Ë Foundation.
(f) The Trust shall continue forever unless the Trustees terminate it and distribute all of
the principal and income, which action may be taken by the Trustees in their discretion at any
time; provided, however, that if and to the extent that state law prohibits perpetual duration, the Ë
Foundation shall not extend beyond the maximum period permitted under applicable state law.
Upon the dissolution of the Ë Foundation, assets shall be distributed for one or more exempt
purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or corresponding
section of any future federal tax code, or shall be distributed to the federal government, or to a
state or local government, for a public purpose.
(g) The Trustees are authorized to form and organize a nonprofit corporation limited to
the uses and purposes provided for in this Trust Agreement, such corporation to be organized
under the laws of any state or under the laws of the United States as may be determined by the
Trustees. Such corporation when organized shall have power to administer and control the affairs
and property and to carry out the uses, objects, and purposes of the Ë Foundation. Upon the
creation and organization of such corporation, the Trustees are authorized and empowered to
convey, transfer, and deliver to such corporation all the property and assets to which the Ë
Foundation may be or become entitled. The articles, bylaws, and other provisions for the
organization and management of such corporation and its affairs and property shall be such as
the Trustees shall determine, consistent with the provisions of this paragraph.
(h) In this Trust Agreement and in any amendments to it, references to "charitable
organizations" or "charitable organization" mean corporations, trusts, funds, foundations, or
community chests created or organized in the United States or in any of its possessions, whether
under the laws of the United States, any state or territory, the District of Columbia, or any
possession of the United States, organized and operated exclusively for charitable purposes, no
part of its net earnings of which inures or is payable to or for the benefit of any private
shareholder or individual, and no substantial part of the activities of which is carrying on
propaganda, or otherwise attempting to influence legislation, and which do not participate in or
intervene in (including the publishing or distributing of statements), any political campaign on
behalf of any candidate for public office. It is intended that the organization described in this
paragraph (h) shall be entitled to exemption from federal income tax under section 501(c)(3) of
the Internal Revenue Code (or the corresponding provision of any future United States Internal
Revenue Law).
(i) In this Trust Agreement and in any amendments to it, the term "charitable purposes"

shall be limited to and shall include only charitable, religious, scientific, literary, or educational
purposes within the meaning of those terms as used in section 501(c)(3) of the Internal Revenue
Code (or the corresponding provision of any future United States Internal Revenue Law), but
only such purposes as also constitute charitable purposes under the law of trusts of the State of
Ë.
Article VII
The Trustees shall have, in addition to all powers granted by law, and subject to
paragraph (e) of Article IV hereof, the following powers with respect to the Ë Foundation,
exercisable in the Trustees' discretion:
(a) To invest and reinvest the principal and income of the Trust in such property, real,
personal, or mixed, and in such manner as they shall deem proper, and from time to time change
investments as they shall deem advisable; to invest in or retain any stocks, shares, bonds, notes,
obligations, or personal or real property (including without limitation any interests in or
obligation of any corporation, partnership, association, business trust, investment trust, common
trust fund, or investment company) although some or all of the property so acquired or retained
is of a kind or size which but for this express authority would not be considered proper and
although all of the trust funds are invested in the securities of one company. No principal or
income, however, shall be loaned, directly or indirectly, to any Trustee or to anyone else,
corporate or otherwise, who has at any time made a contribution to the Ë Foundation, nor to
anyone except on the basis of an adequate interest charge and with adequate security.
(b) To sell, lease, or exchange any personal, mixed, or real property, at public auction
or by private contract, for such consideration and on such terms as to credit or otherwise, and to
make such contracts and enter into such undertakings relating to the trust property, as the
Trustees consider advisable, whether or not such leases or contracts may extend beyond duration
of the Ë Foundation.
(c) To borrow money for such periods, at such rates of interest, and upon such terms as
the Trustees consider advisable, and as security for such loans to mortgage or pledge any real or
personal property with or without power of sale; to acquire or hold any real or personal property,
subject to any mortgage or pledge on or of property acquired or held by the Ë Foundation.
(d) To execute and deliver deeds, assignments, transfers, mortgages, pledges, leases,
covenants, sealed or unsealed, incident to any transaction in which the Trustees engage.
(e) To vote, to give proxies, to participate in the reorganization, merger or consolidation

of any concern, or in sale, lease, disposition, or distribution of its assets; to join with other
security holders in acting through a committee, depositary, voting trustees, or otherwise, and in
this connection to delegate authority to such committee, depositary, or trustees and to deposit
securities with them or transfer securities to them; to pay assessments levied on securities or to
exercise subscription rights in respect of securities.
(f) To employ a bank or trust company as custodian of any funds or securities and to
delegate to it such powers as the Trustees deem appropriate; to hold trust property without
indication of fiduciary capacity but only in the name of a registered nominee, provided the trust

property is at all times identified as such on the books of the Ë Foundation; to keep any or all of
the trust property or funds in any place or places in the United States of America; to employ
clerks, accountants, investment counsel, agents, attorneys and any special services, and to pay
the reasonable compensation of the Trustees.
Article VIII
The Trustees' powers are exercisable solely in the fiduciary capacity consistent with and
in furtherance of the charitable purposes of the Ë Foundation as specified in paragraph (i) of
Article VI and not otherwise.
Article IX
The term "Trustees" as used in this instrument shall include the original Trustees and any
successor or continuing Trustee or Trustees at the time acting. Where appropriate, with reference
to the Trustees, the use of the masculine shall include the feminine and the neuter, and the plural
shall include the singular, and vice versa.
Article X
Any person may rely on a copy, certified by a notary public, or the executed original of
this Trust Agreement held by the Trustees, and of any of the notations on it and writings attached
to it, as fully as he might rely on the original documents themselves. Any such person may rely
fully on any statements of fact certified by anyone who appears from such original documents
or from such certified copy to be a Trustee under this Trust Agreement. No one dealing with the
Trustees need inquire concerning the validity of anything the Trustees purport to do. No one
dealing with the Trustees need see to the application of anything paid or transferred to or upon
the order of the Trustees of the Ë Foundation.
Article XI
The validity, effect and construction of the Ë Foundation shall be determined in

accordance with the laws of the Sate of Ë. The original situs and place of administration of the
trust estate shall be located at Ë, Ë, but the situs and place of administration of the trust estate
may, however, be transferred at any time or from time to time to such place or places as the
Trustees deem to be for the best interests of the trust estate. In so doing, the Trustees may resign
and appoint a substitute Trustee, but remove each substitute Trustee and appoint another,
including any one or more of the appointing Trustees, at will. Each substitute Trustee so
appointed may delegate any and all of such substitute Trustee's powers, discretionary or
ministerial, to the appointing Trustees.
IN WITNESS WHEREOF, the Founder and the original Trustees have executed this Trust
Agreement on the day and year first above written.
///
//
/

__________________________ __________________________
Ë, Founder Ë, Trustee
__________________________
Ë, Trustee
State of Ë
County of
}S.S.
On , 20 , before me, Ë, a Notary Public, personally appeared Ë and Ë, who proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of Ë that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Notary Public, State of Ë
My Commission expires

Ë Foundation
EIN: Ë
PART I
Line 10
Generally, organizations not required to file Internal Revenue Form 990 (or Form
990-EZ) includes churches, certain church affiliated organizations, certain affiliates
of a governmental unit, and organizations with annual gross receipts normally not
more than $25,000. Private foundations must file Internal Revenue Form 990-
PF regardless of the amount of their gross receipts.
IRS Instructions for Form 1023 page 7

Ë Foundation
EIN: Ë
Part II
Question 5 = NO
Page 2 Article VI (a)(b)(c)(d)
Trust Agreement
Article VI
(a) Any Trustee under this Trust Agreement may, by written instrument,
signed and acknowledged, resign his office. The number of Trustees shall be at all
times not less than two, and whenever for any reason the number is reduced below
two, there shall be, and at any other time there may be, appointed one or more
additional Trustees. Appointments shall be made by the Trustee or Trustees for the
time in office by written instruments signed and acknowledged.
(b) Upon any change in any trusteeship hereunder, the continuing Trustee or
the next successor Trustee or Trustees, as the case may be, shall have all of the
powers, authorities, rights, discretions, immunities, estates, titles, duties and
obligations of the original Trustees, without the necessity of any conveyance or the
taking of any action whatsoever.
(c) None of the Trustees shall be required to furnish any bond or surety.
None of them shall be responsible or liable for the acts or omissions of any other
of the Trustees or of any predecessor or of a custodian, agent, depository or counsel
selected with reasonable care.
(d) The Trustee or Trustees from time to time in office shall have full
authority to act even though one or more vacancies may exist. A Trustee may, by
appropriate written instrument, delegate all or any part of his powers to another or
others of the Trustees for such periods and subject to such conditions as such
delegating Trustee may determine.
Ë Foundation
EIN: Ë
Part IV
Narrative Description of the Ë Foundation
The Ë Foundation was established in Ë of Ë as a qualified charitable trust. The mission

of the Ë Foundation is:
"Ë "
The Ë Foundation will be classified as a private non-operating foundation and plans to be

exclusively a grant-making foundation as defined in IRC 4942.
The Ë Foundation will make grants exclusively to other qualified 501(c) (3) organizations
classified as public charities for religious, charitable, educational, scientific, and literary
purposes. See Internal Revenue Publication 78
The Ë Foundation will develop operating procedures to assure that it adheres to the rules
of IRC sections 4941, 4942, 4943, 4944 and 4945 as applicable to private non-operating
foundations.
The Ë Foundation was funded and will continue to be funded primarily by its founders; Ë
and Ë, Trustees. The Board of Trustees will further the mission and purposes of the
foundation by developing guidelines, policies and procedures for effective governance,
management, investment and grant-making.
The Ë Foundation will accomplish its purposes by establishing an endowment dedicated

to grant making as required in IRC 4942. The Ë Foundation endowment will be managed
in accordance with IRC 4944. The Ë Foundation will volunteer their time in order to
perpetuate the growth of the foundation, the endowment and ensure compliance with IRC
4941(d). The founders will donate office space and equipment. The Ë Foundation
anticipates 90% of its support in the form of donations from the founders and 10% from
investment income. No fund raising activities are planned.
The Ë Foundation is domiciled at Ë, Ë.

Ë Foundation
EIN: Ë
Part V
Question 2a
Relationship of Board Members.
Ë, Founder, Trustee
Ë, Spouse, Trustee
Question 5a
Conflict of Interest Policy
The Conflict of Interest Policy was adopted by resolution of the Board of Trustees
of the Ë Foundation. Copy is enclosed.
Ë Foundation
EIN: Ë
PART V
Question 5a
Ë FOUNDATION
Conflict of Interest Policy
Article I
Purpose
The purpose of the conflict of interest policy is to protect this private foundation's
interest when it is contemplating entering into a transaction or arrangement that
might benefit the private interest of an officer, trustee and any disqualified person
of the Foundation and might result in a possible self dealing transaction as defined
in IRC 4941(d). This policy is intended to supplement but not replace any
applicable state and federal laws governing conflict of interest and self dealing
applicable to nonprofit and charitable organizations as defined in IRC 501(c)(3).
Article II
Definitions
1. Disqualified Person
Any creator, founder, director, trustee, principal officer, or member of a
committee with governing board delegated powers, who has a direct or
indirect financial interest, as defined below, is a disqualified person.
2. Financial Interest
A person has a financial interest if the person has, directly or indirectly,
through business, investment, or family:
a. An ownership and investment interest in any entity with which the
Foundation has a transaction or arrangement;
b. A compensation arrangement with the Foundation and with any
CONFLICT OF INTEREST POLICY PAGE 1 of 5.

entity and individual with which the Foundation has a transaction and
arrangement;
c. A potential ownership and investment interest in, and compensation
arrangement with, any entity and individual with which the
Foundation is negotiating a transaction and arrangement.
Compensation includes direct and indirect remuneration as well as gifts and favors
that are not insubstantial.
A financial interest is not necessarily a conflict of interest. Under Article III,

Section 2, a person who has a financial interest may have a conflict of interest only
if the appropriate governing board or committee decides that a conflict of interest
and self dealing exists.
Article III
Procedures
1. Duty to Disclose
In connection with any actual or possible conflict of interest, a disqualified person
must disclose the existence of the financial interest and be given an opportunity to
disclose all material facts to the trustees and members of committees with
governing board delegated powers considering the proposed transaction and
arrangement.
2. Determining Whether a Conflict of Interest Exists

After disclosure of the financial interest and all material facts, and after any
discussion with the disqualified person, he/she shall leave the governing board
meeting while the determination of a conflict of interest is discussed and voted
upon. The remaining board and committee members shall decide if a conflict of
interest and self dealing exists.
3. Procedures for Addressing the Conflict of Interest

a. A disqualified person may make a presentation at the governing board
meeting, after the presentation, a discussion of, and a vote on, the
transaction and arrangement involving the possible conflict of interest
will take place.

b. The executive trustee of the governing board shall, if appropriate,
appoint a non disqualified person to investigate alternatives to the
proposed transaction and arrangement.
c. After exercising due diligence, the governing board shall determine
whether the Foundation can obtain with reasonable efforts a more
advantageous transaction and arrangement from a person and entity
that would not give rise to a conflict of interest.
d. If a more advantageous transaction and arrangement is not reasonably
possible under circumstances not producing a conflict of interest, the
governing board shall determine by a majority vote of the non
disqualified persons whether the transaction and arrangement is in the
Foundation's best interest, for its own benefit, and whether it is fair
and reasonable. In conformity with the above determination the
governing board shall make its decision as to whether to enter into the
transaction and arrangement.
4. Violations of the Conflicts of Interest Policy

a. If the governing body has reasonable cause to believe a member has
failed to disclose actual or possible conflicts of interest, it shall inform
the member of the basis for such belief and afford the member an
opportunity to explain the alleged failure to disclose.
b. If, after the hearing the member's response and after making further
investigation as warranted by the circumstances, the governing board
determines the member has failed to disclose an actual or possible
conflict of interest, it shall take appropriate disciplinary and corrective
action.
Article IV
Records of Proceedings
The minutes of the governing board and all committees with board delegated
powers shall contain:
a. The names of the persons who disclosed or otherwise were found to
have a financial interest in connection with an actual or possible
conflict of interest, the nature of the conflict of interest, any action
taken to determine whether a conflict of interest was present, and the
governing board's decision as to whether a conflict of interest in fact
existed.

b. The names of the persons who were present for discussions and votes
relating to the transaction or arrangement, the content of the
discussion, including any alternatives to the proposed transaction or
arrangement, and a record of any votes taken in connection with the
proceedings.
Article V
Compensation
a. A voting member of the governing board who receives compensation,

directly or indirectly, from the Foundation for services is required to
complete "The Compensation Policy Checklist" in order to create
reputable presumption that compensation is reasonable.
b. No voting member of the governing board whose jurisdiction includes
compensation matters and who receives compensation, directly or
indirectly, from the Foundation, either individually or collectively, is
prohibited from providing information to any committee regarding
compensation.
Article VI
Annual Statements
Each trustee, principal officer, director with governing board delegated powers
shall annually sign a statement which affirms such person:
a. Has received a copy of the conflicts of interest policy,
b. Has read and understands the policy,
c. Has agreed to comply with the policy, and
d. Understands the Foundation is charitable and in order to maintain its

federal tax exemption it must engage primarily in activities which
accomplish one or more of its tax-exempt purposes.
Article VII
Periodic Reviews
To ensure the Foundation operates in a manner consistent with charitable purposes

and does not engage in activities that could jeopardize its tax-exempt status,
periodic reviews shall be conducted. The periodic reviews shall, at a minimum,
include the following subjects:
a. Whether compensation and benefits are reasonable, based on
competent survey information.
b. Whether partnerships, joint ventures, and arrangements with
management organizations conform to the Foundation's written
policies, are properly recorded, reflect reasonable investment or
payments for goods and services, further charitable purposes and do
not result in inurement, impermissible private benefit or in an excess
benefit transaction.
Article VIII
Use of Outside Experts
When conducting the periodic reviews as provided for in Article WI, the
Foundation may, but need not, use outside advisors. If outside experts are used,
their use shall not relieve the governing body of its responsibility for ensuring
periodic reviews are conducted.
Ë, Trustee Date
Ë, Trustee Date

EIN: Ë
Part VIII
Question 11
See Gift Acceptance Policy enclosed.
The Trustees may receive and accept property, whether real, personal, or mixed, by
way of gift, bequest, devise, from any person, firm, trust, or corporation, to be held,
administered, and disposed of in accordance with and pursuant to the provisions of
this Trust Agreement; but no gift, bequest or devise of any such property shall be
received and accepted if it is conditioned or limited in such manner (a) as to require
the disposition of the income or its principal to any person or organization other
than a "charitable organization" or for other than "charitable purposes" within the
meaning of such terms as defined IRC 501(c)(3), or (b) as shall in the opinion of
the Trustees, jeopardize the federal income tax exemption of the Ë Foundation
pursuant to section 501(c)(3) of the Internal Revenue Code or any future United
States Internal Revenue Law.
Question 13
b: Grants, loans and distributions further the charitable purposes of the Ë

Foundation as required by the founder and the governing Trust Agreement and
expressly declared in the Trust Agreement for the purpose of granting, endowing
and funding public charities as defined in IRC 501(c)(3).
d. Any and all recipient organizations will be qualified 501(c)(3) organizations.

The relationship will be that of a private grant organization and the grantee a public
funded charitable organization.
e. The records are maintained and evidenced with resolutions, applications, notes,
letters, and any other appropriate documentation to ensure proper administration
and management of the organization.
EIN: Ë
Part VIII
Question 13 continuation
f . The foundation requires an:

i. application for grant making purposes. See attached copy.
ii. grant proposal and the provided sample clearly spells out the
responsibilities of the grantor and the grantee, obligates the grantee to use
the funds only for the purposes for which the grant is made, provides for
periodic written reports concerning the use of the funds and requires a final
written report and an accounting of how the funds were used, and
acknowledges the foundations authority to withhold and recover grant funds
in case the funds are misused.
g. Enclosed is a copy of a site visit form to be used if necessary to witness the use
of grant funds as well as a copy of a periodic report form and final report form.
— 1 of 4 —
Ë Foundation
EIN: Ë
Ë FOUNDATION
GRANT APPLICATION FORM
Date:
Please complete this application and send certified mail to Ë at:

Ë Foundation
Ë
Ë
GENERAL INFORMATION
Name of Organization:
Mailing Address:
City: State: Zip:
Telephone: Fax:
Email Address:
Contact person for application:
Title:
Contact's phone: Fax:
Date of 501 (c)(3) determination letter:

— 2 of 4 —
Project
Title of project:
Amount of request: $ Total project cost: $
Summary description of project (the issue and its importance, objective, plan);
Describe collaborative efforts— formal or informal — you have established with organizations
working on similar issues or providing similar services: (how do you coordinate with or
complement one another?)
— 3 of 4 —
LIST PRIMARY FUNDING SOURCES WITH AMOUNTS FOR THIS PROJECT:
Committed Pending (give determination date)

Name Amount Name Amount
Future funding plans if this project is to continue:
Brief description of your organization's mission and primary activities:

— 4 of 4 —
Financial Resources
Organization's net assets: $ as of last fiscal year (month)

(year)
Revenues and expenditures for last fiscal year:
Income $ Expenditures $
Current fiscal year budget:
Income $ Expenditures $
Sources of funding:
% Membership % Annual campaign, events, etc.

% Fees
% Government % United Way /United Arts Council
% Other
Human Resources
Number of members of governing board:
Number of paid staff: Full-time: Part-time:

Ë Foundation
EIN: Ë
Ë FOUNDATION
Grant Agreement
Date:
Dear [Applicant]:
The grant to your organization ("Grantee") from the Ë Foundation ("Grantor") is

for the purpose (s) described below and is subject to your organization's acceptance
of the terms and conditions herein. To acknowledge this agreement, to accept its
conditions, and to be eligible to receive payment of the grant funds, PLEASE
RETURN TWO SIGNED COPIES TO THE FOUNDATION. A countersigned
copy will be returned to you for your organization's records.
Sincerely,
Ë Foundation
EIN: Ë
Ë FOUNDATION
Grant Reporting Form
Instructions:
These guidelines have been implemented to aid you in reporting the progress of your grant.
Reports assist the Foundation in tracking the progress of programs and projects and in
maintaining the required fiscal and programmatic oversight of grants. Reports must be received
prior to release of grant payment. If a section or question is not applicable for your grant, please
indicate so. In addition, feel free to add any supplemental information or materials that may be
helpful to our understanding of your progress.
It is acceptable to retype this form on your own word processor if you wish to do so. Although,
remember to follow the same chronology and format.
Grant Number:
Name of Organization:
Address:
Telephone Number: Person Completing Form:
Foundation Contact: Amount of Grant:
Purpose of Grant:
NOTE:
1. Scheduled reports must be received prior to release of payment. Please consult your grant letter
for report due dates. Submission of reports on or before due dates will ensure payments on
schedule.
2. Do not include final or interim reports with any requests for future support. The two must be
submitted separately.
Ë Foundation
EIN: Ë
I. General Program Information (Please make additional copies if needed.)
I-A. OBJECTIVES
OBJECTIVE ACTIVITIES
Please list the original objectives of your What activities has your organization
proposal in this column: conducted during this reporting
period to meet each objective? List below:
I-B. FACTORS IMPEDING OR CONTRIBUTING TO SUCCESS OF THE GRANT

What internal and external factors have contributed to or impeded the success of this grant?
Discuss below (add on separate sheets of paper if necessary).
I-C. EXPERIENCES AND ADVICE

Based on your experience thus far, what would you have done differently if you had the chance?
What would you do the same? What advice would you give to another organization planning to
conduct a similar program project? (Add on separate sheets of paper if necessary).
I-D. FUTURE PLANS
What are your organization's future plans for the project/program?
I-E. ADDITIONAL FUNDING

Have you received any other funding for this project? If yes, please list sources and amounts.
II. Budget
Provide a detailed list of all expenses incurred during the duration of this project which have
been paid for with the Ë Foundation grant.
NOTE: This should not include your organizational budget.
ITEM BUDGETED ACTUAL
$ $ $
$ $ $
$ $ $
$ $ $
TOTAL $ $
UNEXPENDED BALANCE $
Ë Foundation
EIN: Ë
Part VIII
Question 13f
Ë FOUNDATION
REPORTING GUIDELINES
GRANTEE NAME: GRANT NUMBER:
REPORT DUE / FINAL REPORT: AWARD DATE:
Please Note:
" Include with your report a detailed financial accounting of all grant funds.
" Kindly refer to your grant number in all correspondence with the Foundation.
" Your report should address each of the items below. Answer need not be
lengthy; three to five pages for the report is often adequate.
PROJECT OBJECTIVES: [List Objectives]
GENERAL QUESTIONS:
INTERIM REPORT:
" What challenges are you facing as you move forward with this project? How
are you approaching these challenges?
" Have you revised your original objectives since the project began? If so,
why? What are your new objectives?
" What progress have you made toward achieving your objectives? Please
address each stated objective.
" Do you anticipate any difficulties in completing your project in the time
frame outlined in your proposal?
FINAL REPORT:
" What was accomplished in connection with this project? Please address each
stated objective. If any project objectives were changed, please also explain
the circumstances leading to the modification of the objection(s).
" What challenges did you face I connection with this project? How did you
address these challenges?
" What were the most important lessons learned?
" What has changed within your organization as a result of this project?
" What advise would you offer to help another organization as a result of this
project?
Ë Foundation
EIN: Ë
Part VIII
Question 13g
Site Visit Worksheet
Purpose of/Rationale for Site Visit:
I. Preparing for the Visit
Organization: Time and Date of Visit:
Address: Phone:
Directions:
Summary of the request:
Preliminary analysis of proposal:
Strengths + Weaknesses -
Question 13g PAGE 1 of 5.

Ë Foundation
EIN: Ë
Part VIII
Question 13g continuation
Questions raised:
Other information or assumptions about organizations:

Ë Foundation
EIN: Ë
Part VIII
II. Field Notes:
Persons interviewed (name/title):
Impressions or Observations of:

" Physical plant (Prompts: Do they appear to have an infrastructure
necessary to accomplish what they propose in their request?):
" Staff (Prompts: Do they appear to be adequately staffed? Does the

staff appear to be motivated and engaged in their work? ):
Other:
General questions/prompts:
" What are the trends you see coming?

" What special challenges are ahead for you/your organization?
" Within your organization?
" Financially?

Ë Foundation
EIN: Ë
Part VIII
" Concerning your clients/constituents?

" Who else is doing good work in your field?
" What else would you like me to know?
" Do you have any questions for me?
Reminder: Be sure to...
" Explain the review and approval process.

" Confirm next steps. (What will they do? What will you do?)
" Establish a time line for review and decision.
III. Debrief
What are my overall impressions of this organization?
What was learned during this site visit?
What questions remain?
What new issues emerged?

Ë Foundation
EIN: Ë
Part VIII
Question13g continuation
What else do I need to know to make a decision on the request?
What are my next steps?
How can I improve my next site visit?

Ë Foundation
EIN: Ë
Part X
Question lb
Ë FOUNDATION
Trust Agreement
ARTICLE IV
(c) No part of the net earnings of the Ë Foundation shall inure or be

payable to or for the benefit of any private individual, and no substantial part
of the activities of the Ë Foundation shall be carrying on of propaganda, or
otherwise attempting, to influence legislation.
(d) No part of the activities of the Ë Foundation shall be the participation
in, or intervention in (including the publishing or distributing of statements),
any political campaign on behalf of any candidate for public office.
(e) The Trustees shall distribute the income of the Ë Foundation for each
tax year at such time and in such manner as not to become subject to the tax on
undistributed income imposed by section 4942 of the Internal Revenue Code
of 1986 (or the corresponding provision of any future United States Internal
Revenue Law). Further, the Trustees shall not engage in any act of self-dealing
as defined in section 4941(d) of the Internal Revenue Code of 1986 (or the
corresponding provision of any future United States Internal Revenue Law) nor
retain any excess business holdings as defined in section 4943(c) of the Internal
Revenue Code of 1986 (or the corresponding provision of any future United
States Internal Revenue Law), nor make any investments in such manner as to
incur tax liability under section 4944 of the Internal Revenue Code of 1986 (or
the corresponding provision of any future United States Internal Revenue Law),
nor make any taxable expenditure as defined in section 4945(d) of the Internal
Revenue Code of 1986 (or the corresponding provision of any future United
States Internal Revenue Law).
Ë Foundation EIN: Ë
Part VIII
Question 11
Ë Foundation:
Our mission is Ë
Gift Acceptance
Policy
GIFT ACCEPTANCE POLICY PAGE 1 of 17.

Part VIII
Question 11
General Policy Statement
The Board of Trustees of Ë Foundation with an understanding of its mission

and responsibilities to those its serves has established the following Gift
Acceptance Policy.
The Foundation is organized as a private Foundation, recognized as tax exempt

under Internal Revenue Code ("IRC") Section 501(c)(3) and a not for profit
organization in the state of California.
Ë Foundation is committed to compliance with all applicable laws and

regulations, with donor designations and with ethical standards.
This Gift Acceptance Policy, any amendments and forms shall become
effective upon the board resolution and shall be recorded in the book of
minutes.

Part VIII
Question 11
Ë Foundation
EIN: Ë
Part VIII
Question 11
INTRODUCTION
The purpose of this policy is to govern the acceptance of gifts made to the
Foundation and to provide guidance to donors and their professional advisors
in making gifts to the Foundation.
This Policy should be interpreted in light of three overriding principles.
Principle 1
The Foundation should not accept a gift unless there is reasonable expectation
that acceptance of the gift will ultimately benefit the Foundation. The
Foundation encourages private support that will not encumber the Foundation.
Gifts that may be restricted in a manner not in keeping with the Foundations'
mission, or that are likely to generate a disproportionate cost or obligation in
relation to the benefit received are not appropriate and may be rejected.
Principle 2
The Foundation should not accept a gift if such acceptance would not be in the
best interest of the donor. A determination of the donor's "interest" shall
include, but not limited to, a consideration of the donor's financial situation and
philanthropic interests, as well as any tax or other legal matters revealed while
planning for the gift.
Principle 3
The Foundation will not accept any gift that violates any federal, state or local
code, statue or ordinance; or that could cause embarrassment to the Foundation,
or that reserves to the donor or his/her representative the right to designate the

Part VIII
Question 11
recipient; requires the Foundation and its administration to employ a specified

person now or at a future date; requires tuition payments for a family member
of a donor; commits the Foundation to name a fund where a gift is potentially
revocable in anyway; or exposes the Foundation to litigation or other liabilities.
INTENT OF POLICIES
While these policies are intended to provide guidance to the Foundation
directors, trustees, and other agents regarding acceptance of prospective gifts,
donors are ultimately responsible for ensuring that a proposed gift furthers their
own charitable, financial and estate planning goals. Therefore, each prospective
donor is urged to seek the advice of independent legal and/or tax counsel in the
gift planning process. It is not within the province of either the Foundation,
trustees, officers or its staff to give legal, accounting, tax or other advice to
prospective donors.
Finally, the Foundation will accept unrestricted gifts and gifts to support
specific programs, provided that such gifts are not inconsistent with the
Foundations stated mission, purposes and priorities. The Foundation will not
accept gifts that are too restrictive in purpose. Gifts that are too restrictive in
purpose include gifts that are too difficult to administer, or gifts that are outside
the mission of the Foundation. All final decisions on the restrictive nature of
the gift, and its acceptance or refusal, shall be made in accordance with this
Policy.
GIFT REVIEW AND ACCEPTANCE

The Board of Trustees is responsible for accepting or declining gifts made to
the Foundation.
The members of the board are each authorized to negotiate and accept gift
agreements with prospective donors in accordance with these polices and the
format of the approved specimen agreements without further board action or
approval. The current approved specimen agreements will be prepared and
maintained by the board.
Any board member may call a meeting in attendance in order to vote and
Part VIII
Question 11
approve or decline a gift that does not follow the format of the specimen
agreement or otherwise meet the requirements of the following policies.
Attendance may be considered in person, or participating via conference call
or e-mail. If the majority decision can not be reached the gift will be declined.
The board shall review these policies at least annually and whenever they
become inconsistent with IRS regulations or other applicable state or federal
laws. If an amendment is needed the board will assign a member to prepare and
submit a written amendment for review and approval. All amendments shall
become effective upon board resolution and shall be recorded in the book of
minutes.
Any member of the board shall have the authority to sign agreements on behalf
of the Foundation.
GIFT ACCEPTANCE PROCESS

Marketability and the Board's Discretion
The board members may consider the intended holding period and the
probability of sale by determining the adequacy of the provisions that have
been made for payment of the mortgages, taxes, insurance, utilities and other
costs associated with the maintenance of the gift. In no event, however, will the
board members accept encumbered or other unrelated business taxable income
("UBTI") producing property or assets as gifts. As well as gifts of UBTI
producing property to charitable remainder trusts or other instruments for with
such income may cause a loss of tax-exempt status; nor will the Foundation
serve as a trustee of charitable trust that contain such assets.
Acknowledgment, Valuation and Other Procedures
Valuation
All valuations of gifts of partial interests shall be made in accordance with the
IRS valuation guidelines in effect at the time of the gift. For gifts of property
with a stated value in excess of $5,000, other than cash or marketable securities,
the Foundation will require that the donor provide it with a qualified appraisal

Part VIII
Question 11
(as required by IRS Regulations issued under IRS Section 170(a)(1) before
issuing an acknowledgment which values the gift.
Acknowledgment
The Foundation will acknowledge the receipt of all gifts in writing and in a
manner which satisfies the IRS substantiation requirements for the deduction
of charitable gifts by individual donors currently found in IRS Section 170(f)
by providing form 8283 to the donor. The Foundation will inform the donor
that any sale occurring within three (3) years of the date of gift will reported to
the IRS on Form 8282.
Compliance with Tax Laws
Should the IRS change its requirements with regard to valuation or

substantiation, the Foundation will comply with such additional requirements.
Claims and Litigation
The board members may submit normal claims to probate proceedings and
otherwise cooperate in the collection of bequests.
Valuation Dates
When accepting liquid assets, the date in which gift is mailed shall be the date
of the issue. The value of marketable securities with a readily determined value
shall be the mean of the high price and the low price, on the date of the mailing.
When accepting property other than liquid assets, the date of transfer shall be
the date of issue.
Administrative Tithe
It is the policy of the Foundation to request that the donor designate 10% of the
income portion of each planned gift as an unrestricted gift to the Foundation.
The purpose of this donation is to provide current support for the administrative
services of the Foundation.

Part VIII
Question 11
TYPES OF GIFTS
Gifts of Cash
Cash gifts of any amount are accepted by the Foundation. These gifts can take
the form of currency, check, or credit card contribution. Cash and checks may
be delivered in person, by mail, by electronic funds transfer (EFT) or by wire
transfer.
Gifts of Real Property
Real property is defined as land, whatever is affixed to the land, and the rights
that issue from the land. The Foundation will consider gifts of real property,
both improved and unimproved, including gifts subject to a retained life estate,
only after a thorough review of the criteria for acceptance set forth below:
Criteria for Acceptance
1. Market Value and Marketability - the Foundation must receive a

reasonably current appraisal of the fair market value of the property and
the legal interest in the property the Foundation would receive if the
proposed gift is approved. The IRS will require an appraisal made within
sixty (60) days prior to the date of gift or prior to the due date of the
donor's tax return reporting the gift.
2. Communication to Donors - the Foundation must communicate to

donors that it is the Foundation's policy to dispose of all gifts of real
estate (other than property which the Foundation wishes to retain for
related use) as expeditiously as possible. Thus regardless of the value
placed on the property by the donor's appraisal, the Foundation will
attempt to sell at a reasonable price in light of current market conditions.
The Foundation must inform the donor that any such sale occurring
within three (3) years of the date of gift will be reported to the IRS on
Form 8282.
3. Limitations and Encumbrances - the existence of any and all

mortgages, deeds of trust, restrictions, easements, mechanic liens and

Part VIII
Question 11
other limitations of record must be disclosed. Unless a specific exception

is granted by the board for good cause, the Foundation will not accept
any gift if the ownership: 1) is likely to expose time Foundation to
litigation or other liabilities; 2) requires the payment of maintenance
costs or other expenses (e.g. debt service) for which no specific
provision has been make, or exceptions to this is where the fair market
value of the Foundation's interest in the property net of all encumbrances
is substantial or the Foundation was a mission related use for the
property and can sustain the debt to fulfill is mission; 3) is likely to
generate UBTI.
4. Carrying Cost - the existence and amount of any carrying costs,

including but not limited to property owner's association dues, country
dub membership dues, transfer charges, taxes and insurance must be
disclosed.
5. Title Information - a copy of any title information in the possession of

the donor, such as the most recent survey of the property, a title
insurance policy, and/or an attorney's title opinion must be furnished.
Procedure if Property is Sold

1. Acknowledgment - if a proposed gift of real property is approved to
be sold by the board, the Foundation will acknowledge receipt of the gift
upon notice that the deed to the property has been property recorded in
the appropriate manner required by the state or county. The Foundation
will not appraise or assign a value to the gift of property. It is the donor's
responsibility to establish a value for the gift and to provide, at the
donor's expense a qualified appraisal required by the IRS.
2. Conveyance - the gift will be completed by the execution and delivery

of a deed of gift or other appropriate conveyance. The costs associated
with the conveyance and delivery of the gift, including but not limited
to recording fees and if deemed necessary by the Foundation a current
survey, title insurance and/or attorney's title opinion, will be paid by the
donor. In addition, the IRS requires the donor to file Form 8283 for gifts
of real property. In accordance with IRS required practice, this form is
then to be sent to the Foundation to be authorized by mean of signature.

Part VIII
Question 11
3. Appraised Value - the Foundation will attempt to sell such property

for its appraised value. However, sale for such price may not always be
possible. Accordingly, the Foundation may sell such property for what
it reasonably determines is a fair sales price provided that if the
appraised value exceeds $50,000, the approval of the board will be
required for a sale at a price less than 90% of the appraised value. If the
board deems it appropriate, a new appraisal will be obtained by the
Foundation if the proposed sales price falls below 80% of the gift
appraisal value shown on Form 8283.
4. Form 8282 - the Foundation is responsible for filing Form 8282 for
gifts of real property sold within three (3) years of the date of gift.
Procedure if property is retained
1. Accounting - the Foundation will designate an account for charging

expenses associated with the real property management.
2. Management - the Foundation may employ a management company

to maintain the property.
Gifts of Tangible Personal Property
The Board will consider gifts of tangible personal property, including works of
art, manuscripts, literary works, boats, motor vehicles, and computer hardware,
only after a thorough review indicates that the property meets the following
criteria for acceptance of readily marketable or the tangible personal property
is needed by the Foundation for use in a manner which is related to one of the
purposes consistent with the tax exempt status of the Foundation.
Approval and Acceptance Process
1. Written summary - a board member will prepare a written summary

of the gift proposal and submit the summary to the entire board. At a
minimum the summary shall include the following information:
! Description of asset

Part VIII
Question 11
! The purpose of the gift
! An estimate or appraisal of the gifts fair market value and

marketability
! Any potential Foundation's use (as opposed to sale)
! Any special arrangement requested by the donor concerning

disposition (e.g. price considerations, time duration prior to
disposition, potential buyers, etc.)
2. Review - the board will review the material presented by the member
and make a determination as of whether to accept or reject the proposed
gift (or if necessary, to postpone a decision pending the receipt of
additional information). After the final determination of the board is
complete, the member must communicate the decision of the board to the
donor in writing.
3. Appraised Value - if a proposed gift of tangible personal property is

approved by the board, a member of the board will acknowledge receipt
of the gift on behalf of the Foundation. The Foundation will not appraise
or assign a value to the gift. It is the donor's responsibility to establish a
value for the gift and to provide at the donor's expense a qualified
appraisal required by the IRS in the case of gifts of tangible personal
property valued in excess of $5,000.
4. Completion of gift - the gift will be completed by the execution and

delivery of a deed of gift or other appropriate conveyance. All costs
associated with delivery of the gift will be paid by the donor. In addition,
the filing of Form 8283 by the donor is required by the IRS for gifts of
tangible personal property valued at more than $500. This form should
be sent to the Foundation to be signed by a board member as required by
the IRS.
Disposition
Upon approval of a proposed gift of tangible personal property by the board,

Part VIII
Question 11
it will assign the responsibility of disposing the gift to a member, unless the gift
is intended to be put to a specific Foundation purpose. Any guidelines the board
wishes to impose on disposition, including minimum sales price and approval
or rejection of any special arrangements with the donor, will be put in writing.
1. Modifications to approved sale - the board must be consulted before

a gift of tangible personal property may be sold for less than appraised
value, estimated fair market value, or guidelines imposed by the board
in approving the gift, as the case may be. If a current appraisal of the
property would assist in disposing of the property, permission may be
requested from the board to have the appraisal performed.
2. Form 8282 - the board is responsible for filing Form 8282 for gifts of
tangible personal property valued at more than $5,000 sold by the
Foundation within three (3) years of the date of gift.
Gifts of Life Insurance
The Foundation will automatically accept without the necessity of review and
approval by the board gifts of whole life insurance polices which meet the
following two criteria.
! The policy is a whole life insurance policy which is either

paid-up or if not, paid-up as of the date of gift: 1) may be
surrendered for its current value by the Foundation; or 2) may be
converted to a reduced face amount paid up policy; or 3) the
donor agrees to make charitable contribution to the Foundation is
the amount of any premiums, including unscheduled premiums,
which may become due; or 4) has sufficient value and/or dividend
that will keep the policy in force without further payment of
premiums.
! The Foundation is designated as the owner and the beneficiary

of the policy.
In order to avoid any fiduciary liability and the potential for conflicts
of interest, the Foundation will only accept ownership of a life

Part VIII
Question 11
insurance policy when the Foundation is the sole death beneficiary.
Approval Process
A member of the board will prepare a written summary of any proposed gift of
life insurance which fails to meet the criteria specified above and submit that
summary to the board. At a minimum, the summary shall include the following
information:
! Description of the type of life insurance, face value, premium

payment schedule, interest rate, age of insured(s), and other
relevant policy information.
! A copy of the insurance policy and the most recent policy

statement of values.
additional information) After the final determination of the board is
complete, the representative must communicate the decision of the board
to the donor in writing, in which such documents may include conditions
imposed by the board prior to acceptance.
2. Completion of gift - the gift will be completed upon the execution and
delivery of the life insurance policy to the Foundation or an assignment
of the policy in the event that the Foundation is not the original owner
of the policy.
3. Administration - the foundation shall administer all gifts of life

insurance polices and shall maintain records of all donor policies,
contribution schedules, donor designations of death benefits, and the
like. The Foundation also shall be responsible for pledge reminders and
monitoring payments of premiums.
4. Annual Reporting - the foundation shall be responsible for confirming

the existence and cash value of all policies in force at least annually and

Part VIII
Question 11
for collection and distributing death benefits.
Gifts of Other Assets
The Foundation will consider gifts of other assets, including but not limited to:
! Promissory Notes
! Assignment of Promissory Notes
! Interest in Business Entities
! Restricted or non-publicly traded securities
! Publicly traded securities
! Royalty payments
! Copyrights Interest
! Inventory
Partnership interests, S corporations, non-publicly traded stock, interest in

limited liability companies, etc. may be accepted by the Foundation upon the
completion of appropriate due diligence regarding valuation, marketability and
risk assessment:
! Asset was an independent appraisal to establish its fair market

value
! Board must review marketability, taxation, liability, and

involvement in the business operations
! Asset must not be encumbered by debt, and the Foundation

must not be required to make future contributions to the
enterprise, unless the enterprise directly benefits the Foundation's
mission and purposes, and the Foundation can sustain such

Part VIII
Question 11
contributions.
The board must receive a reasonably current appraisal of the fair market value
of the property and/or interest in the property the Foundation would receive if
the proposed gift is accepted. A member of the board will inform the donor
that, if the gift is accepted, the IRS will require an appraisal made within sixty
days prior to the date of gift or prior to the due date of the donor's tax return
reporting the gift. The appraisal and other information must indicate dearly and
convincingly that there is in fact a market for the asset under consideration and
that the asset can be sold within a reasonable period of time or the Foundation
may find that the gift may be appropriately retained and used by the
Foundation.
Approval and Acceptance Process
5. Written summary - a board member will prepare a written summary

of the gift proposal and submit the summary to the entire board. At a
minimum the summary shall include the following information:
! Description of asset
! The purpose of the gift
! An estimate or appraisal of the gifts fair market value and

marketability
! Any potential for income and expenses, encumbrances, and

carrying costs prior to disposition or potential Foundation's use (as
opposed to sale)
! Any special arrangement requested by the donor concerning

disposition (e.g. price considerations, time duration prior to
disposition, potential buyers, etc.)

Part VIII
Question 11
additional information). After the final determination of the board is

complete, the representative must communicate the decision of the board
to the donor in writing in which such documents may include conditions
imposed by the board prior to acceptance.
7. Appraised Value - if a proposed gift is approved by the board, a

member of the board will acknowledge receipt of the gift on behalf of
the Foundation. The Foundation will not appraise or assign a value to the
gift of property. It is the donor's responsibility to establish a value for the
gift and to provide, at the donor's expense, a qualified appraisal required
by the IRS in the case of assets valued in excess of $5,000 ($10,000 for
non-publicly traded stock).
8. Completion of Gift - the gift will be completed by the execution and
delivery of a deed of gift or other appropriate conveyance. All costs
associated with the delivery of the gift as well as the cost associated with
conveyance will be paid by the donor. In addition, the filing of Form
8283 by the donor is required by the IRS for gifts of assets valued at
more than $500. This form should be sent to the Foundation to be signed
by a board member as required by the IRS.
Disposition
Upon approval of a proposed gift of assets by the board, it will assign a

member the responsibility for disposing of the gift, unless the gift is intended
to be put to a specific Foundation purpose. Any guidelines the board wishes to
impose on disposition, including minimum sales price and approval or rejection
of any special arrangements with the donor, will be put in writing.
1. Modifications to Approved Sale - the board must be consulted before

the gift of assets is sold for less than appraised value, estimated fair
market value, or guidelines imposed by the board in approving the gift,
as the case may be. If a current appraisal of the assets would assist in
disposing of the property, permission may be requested for the board to
have the appraisal performed.
2. Form 8282 - the Foundation is responsible for filing Form 8282 for
gifts of assets valued at more than $5,000 sold by the Foundation within

Part VIII
Question 11
three (3) years of the date of gift.
Planned Deferred Gifts
Retained Life Estates - which do not require management by the Foundation

(e.g. gifts of personal residences or farms with retained life estate) must include
in their agreement creating the life interest that donor and/or life tenant shall
remain responsible for the payment of mortgages, taxes, insurance, utilities and
other costs associated with the property, unless other specific provisions are
made for payment of these expenses.
Trusteeship - the Foundation may serve as sole trustee of any deferred gift in
which the Foundation's irrevocable interest equals at least 51% of the total
charitable interests.
FINAL APPROVAL, ACCEPTANCE AND EXECUTION
All documents and agreements must be approved by legal counsel

(pre-approved forms for most types of gifts are included gift acceptance form
book; which should minimize the time for individual document approval in
most instances).
All documents shall be sent first to the donor for signature, then return to the
Foundation for duplicate assembly and distribution. The documents shall be
distributed as follows:
a. one original to donor;

b. one original to fire proof storage (for major and planned gifts);
c. one copy for the Foundation manager; and
d. one to the donor's file.
Governing Use of Legal Counsel
All specimen agreements of the Foundation shall be reviewed by legal counsel

upon adoption of this Gift-Acceptance Policy and the Foundation shall seek
legal counsel for any agreement or transaction that does not fall within the
scope of the policy. The decision regarding which agreements do not fall within

Part VIII
Question 11
the scope of this policy shall be the responsibility of the board.
Governing Legal Instruments
The Foundation is not engaged in the practice of law, and therefore will not
draft any legal instruments pertaining to any one individual's estate plan. In all
cases, an individual will advised to seek private counsel.
Where desired, the Foundation will recommend legal counsel for the drafting
of instruments, and will provide sample documents for the donor's legal
counsel, with an accompanying letter stating that such instruments are for
counsel's review.
No legal fee shall be paid by the Foundation when it pertains to the drafting of
wills or other trust instruments.
Preservation of Agreements
The Foundation recognized its position of trust with respect to donors.

Therefore, all governing instruments will be stored in a locked, fireproof
storage system.
Confidentiality
The Foundation will maintain the utmost confidentiality of all documents in its
care.
Files and agreements shall be made accessible to appropriate individuals only

with the board's approval.

END
OF
COMPLIANCE
DOCUMENTS
Ë Foundation
EIN: Ë
MINUTES OF THE
Ë FOUNDATION
Investment Objectives and Goals

The objectives of the investment policy are to: (1) provide a reasonably stable,
growing and predictable income stream in the form of dividends, interest and
realized gains sufficient to allow distribution of income to meet regulatory
minimums and support annual educational programs; and (2) protect
investment principal to ensure long-term viability of the organization. Capital
appreciation and liquidity are secondary objectives.
The investment goal is to realize a real total annual return of 5-7% based on
market value plus a nominal return which reflects inflationary expectations.
The targeted investment return will be reviewed by the Board on a quarterly
basis. Adjustments to the required investment return will be adopted on the
conditions of the market and consistency with investment objectives.
Investment Philosophy
The management philosophy to be followed should be a disciplined and
consistent one, capable of accommodating all those events and occurrences
considered reasonable and probable. Extreme positions and opportunistic styles
do not fit the general philosophy and tone of the Ë Foundation and are not
acceptable.
The purpose of fixed income investments is to provide a highly predictable and

dependable source of income, to reduce the volatility of the total portfolio
market value and, when appropriate, to provide funds for alternative
investments.
The purpose of equity investments is to provide current income, growth of

income and appreciation of principal with the recognition that this requires the
assumption of greater market volatility and risk of loss.
Asset Allocation
The fixed income component of the portfolio shall be maintained at a
proportion ranging from not less than 50% to not more than 80% of current
market value.
The equity component of the portfolio shall be not less than 20% and not more
than 50% of current market value.
The permanent real estate holdings of the portfolio shall not exceed 10% of the
current market value. This percentage may be higher from time to time due to
pending asset sales.
Allocation of assets within the above limits shall be based primarily on relative
attractiveness and the investment/economic prospects over a three to five year
period.
Investment Guidelines
Fixed Income Holdings:
Except for U.S. Treasury and Agency obligation, the fixed income portion of
the portfolio shall not contain more than 10% from any given issuer valued at
market.
Fixed income holdings shall emphasize intermediate maturity bonds. No bond

with a maturity exceeding 12 years shall be held.
The average quality rating of the fixed income portion of the portfolio should
be greater than "A" rated.
Fixed income investments are limited to the following investment categories:

money market instruments, certificates of deposit, repurchase agreements,
banker's acceptances, commercial paper, money market mutual funds, treasury
bills and notes, federal agency securities, and government securities mutual
funds.
Equity Holdings:
Equity securities shall mean common stocks or common stock mutual funds
listed on a major exchange to take advantage of listing requirements, disclosure
rules, and to improve liquidity.
A high level of diversification across industry and individual holdings will be

maintained. No single mutual fund or common stock shall exceed 10% of the
market value of the investment portfolio.
Companies whose securities are held should exhibit strong financial position,
and have a record of profitable operating results. The Trustees have a
preference for high quality dividend paying securities.
International equity securities shall not be an approved investment option.
Real Estate Holdings:
All real estate investments must be presented to the full Board of Trustees for
approval prior to inclusion in the investment portfolio. Each investment will be
considered on an individual basis with consideration given to management
costs and effort as well as risks associated with operating the property. Finally,
all real estate will be properly insured.
Administration and Evaluation:
The Board of Trustees will approve the investment policy at the annual
meeting. Any changes must be submitted in writing and approved by the Board.
Performance under this investment policy related to goals, objectives and

allocations will be monitored by the finance committee. Quarterly evaluations
will be provided by the finance committee to the Board.
Date
Date
Examples of Organizations Qualifying for Section 501(c)(3) Status
The following is a condensed listing of precedent rulings from the IRS Exempt Organization
Handbook illustrating types of organizations that have received favorable determinations of exempt
status under IRC Sec. 501 (c)(3).
Charitable Purposes who need not become members to obtain An organization that maintains a drug rescue
services or participate in activities. Rev. Rul. center and a telephone drug crisis service. Rev.
An organization formed to engage in a 75-198, 1976-1 CB 157. Rul. 70-590, 1970-2 CB 116.
program for new housing construction and the
renovation of existing housing for sale to low- A nonprofit employment agency operated free A nonprofit legal aid society providing free
income families on long-term, low payment of charge to secure employment of the elderly legal service to indigent persons. Rev. Rul. 69-
plans. Rev. Rul. 70-585, 1970-2 CB 115. where services are performed primarily for 161. 1969-1 CB 149.
those of limited means. Rev. Rul. 66-257,
An organization that assists low-income 1966-2 CB 212. An organization providing legal services to
individuals and families with individual indigents for a fee based on the indigent
financial counseling and assists them in A nonprofit organization that provides, upon clients' limited ability to pay rather than the
establishing budget plans where necessary. request, low-cost bus transportation to senior type of services rendered. Rev. Rul. 78-428,
Rev. Rul. 69-441, 1969-2 CB 115. citizens and handicapped persons in a 1978-2 CB 177.
community where public transportation is
An organization that provides information and unavailable or inadequate. Rev. Rul. 77-246, An organization formed to provide substantial
technical assistance to local tenant groups in 1977-2 CB 190. free legal services to low-income residents of
public housing projects regarding the rights economically depressed communities through
and responsibilities of tenants and the effect of A nonprofit organization created to minister to the subsidization of recent law graduates. Rev.
existing laws and regulations concerning the nonmedical needs of patients in a Rul. 72-559, 1972-2 CB 247.
public housing, and which represents such proprietary hospital where nonmedical needs
groups before state and federal housing included reading to patients, writing letters for An organization that assisted a school's law
authorities. Rev. Rul. 75-283, 1975-2 CB 201. them, and providing other similar personal students, chosen on the basis of merit and
services. Rev. Rul. 68-73, 1968-1 CB 251. interest, to obtain practical experience with
A nonprofit organization formed to operate a exempt public interest law firms and legal aid
daycare center for children of needy working A nonprofit hospice operated on both an societies by supplementing the nominal
parents. Rev. Rul. 68-166, 1968-1 CB 255. inpatient and outpatient basis to alleviate the salaries paid by the participating firms. Rev.
physical and mental distress of the terminally Rul. 78-310, 1978-2 CB 1973.
An organization created to market the cooking ill. Rev. Rul. 79- 17, 1979-1 CB 193.
and needlework of needy women. Rev. Rul. An organization that, as part of its integrated
68-167, 1968-1 CB 255. A nonprofit organization providing specially program of providing legal, rehabilitative,
designed housing to physically handicapped employment, and other services to persons
An organization conducting a self-help persons at the lowest feasible cost and accused of crimes, posts its own money or
housing program for low-income families. maintaining in residence those tenants who property with the court as total or partial bail
Rev. Rul. 67- 138, 1967-1 CB 129. subsequently become unable to pay its for indigent defendants. Rev. Rul. 76-21,
monthly fees. Rev. Rul. 79-19, 1979-1 CB 1976-1 CB 147.
A home for the aged that is committed to an 195.
established policy of maintaining residents An organization providing free legal services
who become unable to pay and that provides An otherwise qualifying organization that and funds necessary to pay the commercial
services to its residents at the lowest feasible makes a private hospital room available to bondsmen's fees for indigent persons accused
cost. Rev. Rul. 72-124, 1972-1 CB 145. patients who can benefit medically from a of crimes. Rev. Rul. 76-22, 1976-1 CB 148.
private room but who cannot afford the
A nonprofit organization that provides expense of the room. Rev. Rul. 79-358, 1979-2 A nonprofit organization formed to establish,
specially designed housing to elderly persons CB 225. maintain, and operate a public swimming pool,
at the lowest feasible cost and maintains in playground, and other recreational facilities for
residence those tenants who subsequently A nonprofit organization that provides the children and other residents of a
become unable to pay its monthly fees. Rev. housing, transportation, and counseling to community. Rev. Rul. 59-310, 1959-2 CB 146.
Rul. 79-18, 1979-1 CB 194. hospital patients' relatives and friends who
travel to the locality to assist and comfort the A nonprofit blood bank that provides a
A nonprofit, publicly supported organization patients. Rev. Rul. 81-28, 1981-1 CB 328. community with permanent facilities for the
that operates a rural rest home to provide, at a collection, storage, and distribution of blood,
nominal charge, two-week vacations for A nonprofit organization that conducts and furnishes a variety of services for the
elderly poor people from nearby metropolitan emergency rescue services for stranded, community at large and for the health agencies
areas. Rev. Rul. 75-385, 1975-2 CB 205. injured, or lost persons. Rev. Rul. 69-174, within the community. Rev. Rul. 66-323,
1969-1 CB 149. 1966-2 CB 216.
An organization that establishes a service
center providing information, referral, A nonprofit volunteer fire company that An organization devoted to rehabilitating
counseling services relations to health, provides fire protection and ambulance and convicts to make them self-supporting and
housing, finances, education, and employment, rescue services. Rev. Rul. 74-361, 1974-2 CB useful citizens or an organization formed to
as well as a facility for specialized recreation 159. develop, manage, and operate community
for a particular community's senior citizens, correctional centers for rehabilitation of
prisoners selected by the courts or also operates a furniture shop to provide full- Christian denominations at a rural lakeshore
governmental custodial agencies. Rev. Rules. time employment for its residents, with any site where the participants may enjoy the
67- 150, 1967-1 CB 133 and 70-583, 1970-2 profits applied to operating costs of the recreational facilities in their limited amount
CB 114. halfway house. Rev. Rul. 75-472, 1975-2 CB of free time. Rev. Rul. 77-430, 1977-2 CB
206. 194.
An organization formed to educate the public
about the need to make housing available to A nonprofit organization that arranges the A nonprofit organization formed to advance
members of the public on a nondiscriminatory placement of orphan children from foreign education and religion that broadcasts religious
basis and to encourage investment in such countries in the homes of adoptive parents in and educational programs for all but an
housing. Rev. Rul. 67-250, 1967-2 CB 182. the United States. Rev. Rul. 80-200, 1980-2 insubstantial amount of its broadcast time from
CB 173. a television station it owns and operates, even
A nonprofit organization formed and operated though its remaining broadcast time is devoted
to assist needy families in developing Religious Purposes to commercially sponsored programs. (The
countries. Rev. Rul. 68-117, 1968-1 CB 251. commercially sponsored programs are an
A nonprofit organization formed by local unrelated trade or business.) Rev. Rul. 68-385,
A domestic nonprofit corporation that joins churches to operate a supervised facility 1978-2 CB 174.
with a counterpart group in a country in Latin known as a "coffee house," in which persons
America to promote student and cultural of college age are brought together with A nonprofit organization whose purpose is to
exchanges and to provide technical and church leaders, educators, and leading provide traditional burial services that directly
material assistance for self- help projects businessmen of the community for discussions support and maintain basic tenets and beliefs
designed to improve the living conditions of and counseling on religion, current events, of a religion. Rev. Rul. 79-359, 1979-2 CB
underprivileged people in Latin America. Rev. social, and vocational problems. Rev. Rul. 68- 226.
Rul. 68-167, 1968 1 CB 255. 72, 1968-1 CB 250.
Educational Purposes
A nonprofit organization formed to help A nonprofit organization that publishes a
reduce personal bankruptcy by providing newspaper primarily devoted to news, articles, A foundation that creates interest in the
information to the public on budgeting, buying and editorials relation to church and religious development of the American theater by aiding
practices, and the sound use of consumer matters. Rev. Rul. 68-306, 1968-1 CB 257. local communities to establish their own
credit, and by assisting low-income individuals charitable and education repertory theaters.
and families who have financial problems by A nonprofit religious broadcasting station that Rev. Rul. 64- 174, 1964-1 (Part I) CB 183.
providing, without charge, counseling and, if does not sell commercial or advertising time.
necessary, budget plans for liquidation of Rev. Rul. 68-563, 1968-2 CB 212, amplified A nonprofit organization formed to educate the
indebtedness. Rev. Rul. 69-441, 1969-2 CB by Rev. Rul. 78385. public about the quality of radio and television
115. programs by means of opinion polls,
A nonprofit organization formed to compile evaluation guides, newsletters, and study kits
An education daycare center operated in genealogical research data on its family that better their understanding and judgment of
conjunction with an industrial company that members in order to perform religious radio and television programs and thereby
enables children on a basis of family financial ordinances in accordance with the precepts of encourage broadcasters to fulfill their
need and the child's need for the care and the religious denomination to which family obligations to better serve the public interest.
development program of the center. Rev. Rul. members belong. Rev. Rul. 71-580, 1971-2 CB Rev. Rul. 64-192, 1964-2 CB 136.
70-533, 1970-2 CB 112. 235.
A nonprofit educational organization that
A nonprofit organization formed to provide A nonprofit organization that supervises the performs nonpartisan study, research, and
food and drink to firemen, policemen, and preparation and inspection of food products assembly of materials in connection with
other emergency personnel at the scene of prepared commercially in a particular locality prospective legislation relating to court reform
fires, riots, and other disasters. Rev. Rul. 71- to ensure that they satisfy the dietary rules of and disseminates such material to the public.
90, 1971-1 CB 151. a particular religion, thereby assisting the Rev. Rul. 64-195, 1964-2 CB 138.
individual members of the religion to comply
An organization otherwise qualified for with its tenets and dictates. Rev. Rul. 74-575, An organization that provides housing, books
exemption that carries out educational and 1974-2 CB 161. and educational supplies, as a gift or on an
vocational training of unemployed and An organization formed and controlled by an interest-free loan basis, to qualified students
underemployed persons through the exempt conference of churches that borrows who would otherwise have to discontinue their
manufacturing and selling of toy products. funds from individuals and makes mortgage education for lack of funds. Rev. Rul. 64-274,
Rev. Rul. 73-128, 1973-1 CB 222. loans at less than the commercial rate of 1964-2 CB 141.
interest to affiliated churches to finance the
An organization comprised of public housing construction of church buildings. Rev. Rul. 75- An organization formed to train suitable
tenant groups in a state, formed to promote the 282, 1975-2 CB 201. candidates in the techniques of racing sailboats
rights and welfare of public housing tenants by in national and international competition. Rev.
providing them with information and technical An organization established to provide Rul. 64-275, 19842 CB 142.
assistance regarding regulations and laws temporary low-cost housing and related
about public housing. The organization acts as services for missionary families on furlough A foundation operated exclusively to teach
the recognized state agent for public housing for recuperation or training in the U.S. from children a sport by holding clinics conducted
tenant organizations. Rev. Rul. 75-363, 1975-2 their assignments abroad. Rev. Rul. 75-434, by qualified instructors in schools,
CB 201. 1975-2 CB 205. playgrounds, and parks and
by providing free instruction, equipment, and
A halfway house, organized to provide room, An otherwise qualifying organization that facilities. Rev. Rul. 65-2, 1965-1 CB 227,
board, therapy, and counseling for persons charges no fees and conducts weekend amplified by Rev. Rut. 77-365.
discharged from alcoholic treatment centers. It religious retreats open to individuals of diverse
An organization formed for the primary qualified judges for viewing and are for wild birds and animals for the education of
purpose of developing and disseminating a gratuitously displayed. Rev. Rul. 66-178, the public. Rev. Rul. 67-292, 1967-2 CB 184.
body of new knowledge relating to the social 1966-1 CB 138.
sciences. Activities consist of the performance A nonprofit organization formed and operated
of scientific research under contracts with A nonprofit corporation organized to operate to educate the public on the need for
governmental agencies, the results being a noncommercial educational broadcasting international cooperation to create and
communicated to the public through seminar station presenting educational, cultural, and maintain a peaceful world, which disseminates
courses, lectures, and public discussions, and public interest programs. Rev. Rul. 66-220, its educational material by means of
through publications distributed free to 1966-2 CB 209. commercial television. Rev. Rul. 67-342,
depositary libraries. Rev. Rul. 65-60, 1965-1 1967-2 CB 187.
CB 231. A nonprofit organization that educates the
public through meetings, films, forums, and A nonprofit organization formed to develop
A nonprofit organization organized to extend publications in a particular method of painless and distribute a community land-use plan.
hospitality to foreign visitors and students, childbirth. Rev. Rul. 66-255, 1966-2 CB 210. Rev. Rul. 67-391, 1967-2 CB 190.
promote cultural and educational programs,
and provide an environment for social contact An organization created by representatives of A nonprofit organization that encourages and
between American citizens and foreign visitors both labor and management to select promotes the advancement of young musical
by maintaining and operating community or individuals for apprentice training, arrange artists by conducting weekly workshops,
hospitality centers. Rev. Rul. 65-191, 1965-2 their classroom and on-the-job training, and sponsoring public concerts by the artists, and
CB 157. provide books and supplies used in training. securing paid engagements for the artists to
Rev. Rul. 67-72, 1967-1 CB 125. improve their professional standing. Rev. Rul.
A nonprofit organization formed to operate a 67392, 1967-2 CB 191.
school to teach the art of dancing that A nonprofit organization created to provide
maintains a regular faculty and curriculum instruction and guidance to low-income A nonprofit organization that helps people in
with a regularly enrolled body of students. families in need of adequate housing and planning their careers and in achieving
Rev. Rul. 65-270, 19652 CB 160. interested in building their own homes. Rev. occupational adjustment by distributing
Rul. 67-138, 19671 CB 129. educational publications at a nominal charge
A nonprofit organization created to develop and providing free vocational counseling. Rev.
and promote an appreciation of jazz music as A nonprofit organization formed to increase Rul. 68-71, 1968-1 CB 249.
an American art form through the presentation the knowledge of its members and the public
of public jazz festivals or concerts. Rev. Rul. about historic events of the Civil War by A nonprofit organization formed and operated
65-271, 1965-2 CB 161. researching, studying, and involving its to assist needy families in "'developing"
members in historically accurate reenactments countries by teaching modern farming methods
A nonprofit organization organized and of Civil War battles to which the public is and furnishing other technical assistance. Rev.
operated on a nonmembership basis invited. Rev. Rul. 67-148, 1967-1 CB 132. Rul. 68-117, 1968-1 CB 251.
exclusively for the purpose of carrying on
research as to diseases and other disorders of A nonprofit organization that furthers the An organization formed to develop and
the human body and to develop scientific rehabilitation of ex-convicts and parolees in disseminate standards of safety in small boat
methods for diagnosis, prevention, and order to make them self-supporting and useful design, construction, and operation. Rev. Rul.
treatment thereof, and then to demonstrate the citizens. Rev. Rul. 67-150, 1967-1 CB 133. 68164, 1968-1 CB 252.
results of such research to other physicians and
the public through means of seminars. Rev. A nonprofit organization formed and operated A nonprofit organization formed to assist the
Rul. 65-298, 1965-2 CB 163. exclusively to instruct the public on National Park Service, Dept of the Interior, in
agricultural matters by conducting annual furthering its educational and scientific
A nonprofit organization formed to promote public fairs and exhibitions of livestock, programs. Rev. Rul. 68-307, 1968-1 CB 258.
public appreciation of group harmony singing poultry, and farm products. Rev. Rul. 67-216,
and to educate its members and the general 1967-2 CB 180. A nonprofit organization that procures, cares
public in this type of music. Rev. Rul. 66-45, for, and displays objects of lasting interest or
1966-1 CB 133. A nonprofit organization formed to provide value relating to a particular sport. Rev. Rul.
housing and food service exclusively for 68-372, 1968-2 CB 205.
A nonprofit organization providing awards and students and faculty of a university. /it offers
grants, including scholarships and fellowships, the university an option to acquire property at An organization formed to conduct an
to needy individuals to continue their any time upon payment of an amount equal to educational program for bank employees,
education or their work in the creative arts the outstanding indebtedness. Rev. Rul. 67- whose courses are limited to its members and
with no monetary benefit to the donor. Rev. 217, 1967-2 CB 181. whose membership is open to area bank
Rul. 66-103, 1966-1 CB 134. employees. Rev. Rul. 68-504, 1968-2 CB 211.
An organization formed to educate the public
An organization formed to survey medical and about the need for making housing available to A nonprofit organization awarding
scientific articles published throughout the members of the public on a nondiscriminatory scholarships based on scholastic ability,
world and to abstract selected articles of note basis and to encourage investment in such without regard to financial need. Rev. Rul. 69-
in a monthly publication distributed free to housing. Rev. Rul. 67-250, 1967-2 CB 182. 257, 1969-1 CB 1-51.
interested parties requesting to be put on the
mailing list. Rev. Rul. 66-147, 1966-1 CB 137. A nonprofit organization that subsidizes a A nonprofit organization that selects students
training table for coaches and members of a and faculty members who are interested in a
A nonprofit organization created to foster and university's athletic teams. Rev. Rul. 67-291, particular foreign history and culture and
develop the arts by sponsoring a public art 1967-2 CB 184. enrolls them in foreign universities, transports
exhibit at which the works of unknown but them to and from that country, and conducts
promising artists are selected by a panel of An organization formed to develop a sanctuary
on-site tours. Rev. Rul. 69-400, 1969-2 CB glass containers, and metal cans for recycling. A nonprofit organization formed to promote
114. Rev. Rul. 72-580, 1972-2 CB 248. the art of filmmaking by conducting annual
festivals to provide unknown independent
An organization that operates a college book A nonprofit organization created to develop a filmmakers with opportunities to display their
and supply store serving exclusively members community appreciation for drama and films and by sponsoring symposiums on
of the faculty and student body, and that musical arts by sponsoring professional filmmaking. Rev. Rul. 75-471, 1975-2 CB
refunds its excess earnings to members in presentations such as plays, musicals, and 207.
proportion to their purchases. Rev. Rul. 69- concerts. Rev. Rul. 73-45, 1973-1 CB 220.
538, 1969-2 CB 116. An otherwise qualifying organization that
An organization that provides free counseling produces and distributes free educational,
An organization formed to support research in to women on methods of resolving unwanted cultural, and public interest programs for
anthropology by manufacturing quality cast pregnancies, including lawful abortion, public viewing via public-educational channels
reproductions of anthropological specimens, delivering and placing the child for adoption, of commercial cable television companies.
which are sold to scholars and educational and delivering and keeping the child. Rev. Rul. Rev. Rul. 76-4, 1976-1 CB 145.
institutions in a noncommercial manner. Rev. 73-569, 1973-2 CB 178.
Rul. 70-129, 19701 CB 128. A nonprofit organization that purchases
A nonprofit organization of accredited building lots, furnishes funds to a public
An organization formed to collect and collate educational institutions whose membership vocational training center for use in its on-the-
campaign materials of a candidate for a includes a small number of proprietary job home construction training program, sells
historically important elective office for schools, and whose activities include the the completed homes to the general public at
donation to a university or public library. Rev. preparation of accreditation standards, FMV, and uses the income from home sales to
Rul. 70-321, 1970-1 CB 129. identification of schools and colleges meeting finance new projects and obtain vocational
these standards, and the dissemination of training equipment for the public school
A nonprofit organization whose primary accredited institution lists. Rev. Rul. 74-146, system. Rev. Rul. 76-37, 196-1 CB 148.
activity is conducting travel study tours that 19741 CB 129.
include courses on the culture of the U.S. A nonprofit organization formed to aid
foreign countries, and nature studies taught by An organization that provides free counseling immigrants in overcoming social, cultural, and
certified personnel. Rev. Rul. 70-534, 1970-2 to men concerning methods of voluntary economic problems by providing personal
CB 113. sterilization, assists them in obtaining counseling, referrals to helpful agencies, social
sterilization operations, and distributes and recreational activities, instruction in
A nonprofit organization that recruits college pamphlets and brochures explaining the English, and distributing a newsletter
students for internship programs providing effectiveness of sterilization in family containing information on attaining
work experience in various phases of planning. Rev. Rut 74-595, 1974-2 CB 164. citizenship, securing housing, and obtaining
governmentrelated to their studies while medical care. Rev. Rul. 76-205, 1976-1 CB
enabling them to contribute to the community. An otherwise exempt organization of exempt 154.
Rev. Rul. 70-584, 1970-2 CB 114. colleges and universities that devises, operates,
and provides the organizational structure for a A nonprofit organization that makes facilities
A nonprofit organization that provides regional network of member owned or leased and equipment available to the general public
personal marriage counseling services and computers to collect and disseminate scientific for the production of noncommercial
conducts workshops and seminars on the and educational information to exempt educational or cultural television programs for
subject of marital adjustment. Rev. Rul. 70- members' faculties and students. Rev. Rul. 74- communication to the public via public and
640, 1970-2 CB 117. 614, 1974-2 CB 164. educational channels of a commercial cable
television company. Rev. Rul. 76-443, 1976-2
A national honor society for women organized An organization formed to assist individuals in CB 149.
to recognize scholastic achievements and to developing nations to improve their living
serve various universities and colleges where conditions through educational programs on A nonprofessional organization formed to
chapters are established. Rev. Rul. 71-97, credit problems and to instruct and train encourage and assist in establishment of
1971-1 CB 150. individuals from those nations in the nonprofit regional health data systems, to
techniques of organizing and managing credit conduct studies and propose improvements
A nonprofit organization acting as a unions. Rev. Rul. 74-16, 1974-1 CB 126. with regard to quality, utilization, and
clearinghouse and course coordinator by effectiveness of health care and health care
bringing together instructors and interested A nonprofit organization that was formed to agencies, and to educate those involved in
students in a community for instruction on provide high school graduates and college furnishing, administering, and financing health
subjects useful to individuals and beneficial to students with work experience for which they care. Rev. Rul. 76-455, 1976-2 CB 150.
the community. Rev. Rul. 71-413, 1971-2 CB receive no compensation, in selected trades or
2-28. professions, and that is financed by tuition and A nonprofit organization created to elevate the
contributions from the general public. Rev. standards of ethics and morality in the conduct
An organization that conducts an international Rul. 75-284, 1975-2 CB 202. of campaigns for election to political office by
exposition commemorating certain historical publishing its code of fair campaign practices
events and cultural achievements and A nonprofit organization formed to promote an through newspapers, radio, and television and
exhibiting products of various nations. Rev. appreciation of history through the acquisition, by furnishing aids to political science and
Rul. 71-545, 1971-2 CB 235. restoration, and preservation of homes, civics teachers for use in school classes. Rev.
churches, and public buildings having special Rul. 76456, 1976-2 CB 151.
An organization formed to educate the public historical or architectural significance and to
regarding environmental deterioration due to open the structures for viewing by the general A nonprofit organization that sets up closed-
solid waste pollution and operated with public. Rev. Rut 75-470, 1975-2 CB 207. circuit radio transmitting equipment in
contributions and proceeds from sale of multiple residence structures such as nursing
collected solid waste such as old newspapers, homes, rest homes, and convalescent homes,
providing senior citizens within the building 67-292, 1967-2 CB 184. An organization formed to promote equal
an opportunity to listen to free, noncommercial An organization that preserved and developed rights for women by investigating instances of
and educational broadcasts concerning their the beauty of a city by planting trees in public discrimination in employment and to aid
special needs. Rev. Rul. 77-42, 1977-1 CB areas, assisting municipal authorities in women in recognizing and dealing with
142. keeping the city clean, and informing the discrimination. Rev. Rul. 72-228, 1972-1 CB
public of the advantages of these programs. 148.
A nonprofit organization formed to provide Rev. Rul. 68-14, 1968-1 CB 243, distinguished
individual psychological and educational by Rev. Rul. 75-286.
evaluations, as well as tutoring and therapy, An organization that provides funds to defend
for children and adolescents with learning An organization that investigated members of a religious sect in legal actions
disabilities. Rev. Rul. 77-68, 1977-1 CB 142. complaints in cases in which possible involving substantial constitutional issues of
violations of building codes and zoning state abridgement of religious freedom. Rev.
A nonprofit organization that conducts clinics, ordinances might result in community Rul. 73- 285, 1973-2 CB 174.
workshops, lessons, and seminars at municipal deterioration, planned the use of vacant lots,
parks and recreational areas to instruct and and worked to relieve racial tensions both An organization assisting the police
educate individuals in a particular sport. Rev. within the schools and within the larger department in the apprehension and conviction
Rul. 77-386, 1977-2 CB 192. community. Rev. Rul. 68-15, 1968-1 CB 244. of criminals by making funds available for use
in offering rewards. Rev. Rul. 74-246, 1974-1
A nonprofit organization formed to provide CB 130.
individual and group counseling to widows to A nonprofit organization that conducts a
assist them with legal, financial, and emotional model demonstration housing program for
problems caused by the death of their low-income families and disseminates A nonprofit organization formed to relieve
husbands and that provides the widows with information about the results of the program. poverty, eliminate prejudice, reduce
information on available benefits and services. Rev. Rul. 68-17, 1968-1, CB 247. neighborhood tensions, and combat
Rev. Rul. 78-99, 1978-1 CB 152. community deterioration through a program of
financial assistance in the form of low- cost or
An organization formed to end discrimination long-term loans to or the purchase of equity
A nonprofit organization formed to educate the in employment, study employment conditions,
public about homosexuality in order to foster interests in various business enterprises in
and inform the public of the advantages of economically depressed areas. Rev. Rul. 74-
an understanding and tolerance of nondiscriminatory hiring through lectures and
homosexuals and their problems. Rev. Rul. 78- 587, 1974-2 CB 168, amplified by Rev. Rul.
discussions. Rev. Rul. 68-70, 1968-1 CB 248. 81-284.
305, 1978-2 CB 172.
An organization formed to develop, promote, An organization conducting investigations to An organization formed to improve conditions
and regulate a sport for individuals under 18 obtain information regarding discrimination in an area of a city where the income level is
years of age by organizing local and statewide and meeting with proprietors of establishments higher and housing better than in other areas of
competitions, promulgating rules, organizing where discrimination had been observed and the city and whose activities include providing
officials, presenting seminars, distributing a with trade associations of the purpose of general information on methods of
newsletter, and otherwise encouraging growth encouraging better compliance with civil rights counteracting housing deterioration and ways
of the sport. Rev. Rul. 70-4, 1970-1 CB 126, law. Rev. Rul. 68-438, 1968-2 CB 209. of improving homes. Rev. Rul. 76-147, 1976-1
distinguished by Rev. Rul. 80-215.Certain CB 151.
publications of congressional incumbents'
records on selected issues in a nonpartisan A nonprofit organization formed to promote
racial integration in housing, to lessen An organization formed to initiate and develop
newsletter. Rev. Rul. 80-282, 1980-2 CB 178. plans and programs to reduce vehicle deaths
neighborhood tensions, and to prevent
deterioration of neighborhoods. Rev. Rul. 68- and injuries by providing local government
A genealogical society that opens its officials upon request with free expert
membership to all persons in a particular area, 655, 1968-2 CB 213.
opinions on the existence of hazardous traffic
provides instruction in genealogical research conditions and the alleviation of these
techniques to its members and to the general A nonprofit organization that holds meetings conditions. Rev. Rul. 76-418, 1976-2 CB 145.
public (but does not research genealogies for to discuss identity, and cooperate in
its members), conducts research projects and developing regional plans and policies for such
makes the results available to the state An organization receiving funding pursuant to
problems as water and air pollution, waste a government program for the establishment of
historical society, provides materials for disposal, water supply, and transportation, but
libraries and community displays, and programs to reduce chronic unemployment by
that does not advocate any legislative action to making purchases of blighted land in an
promotes various other related activities. Rev. implement its findings. Rev. Rul. 70-79, 1970-
Rul. 80-301, 1980-2 CB 180. economically depressed community to convert
1 CB 127. such land into an industrial park for lease to
Government Assistance tenants, who are required to hire unemployed
An organization formed to preserve a lake persons residing in that area and train the
used as a public recreation facility by treating unemployed in needed skills. Rev. Rul. 76-
A garden organization exclusively engaged in the water in the lake and otherwise improving 419, 1976-2 CB 146.
the development of plantings on public lands, its condition for recreational purposes. Rev.
making awards for civic achievements, and Rul. 70-186, 1970-1 CB 128.Nonprofit An organization formed as a Model Cities
conducting similar activities for the organizations created to provide housing for Demonstration project to provide bus
community benefit. Rev. Rul. 66-179, 1966-1 low and moderate income families, thereby transportation to isolated areas of a community
CB 139.Organizations engaged in the lessening neighborhood tensions, eliminating unserved by the existing bus system. Rev. Rul.
development and conservation of natural prejudice and discrimination, and combating 78-68, 1978-1 CB 149.
resources, such as forests, land, or wildlife, for deterioration. Rev. Rul. 70-585, 1970-2 CB
the benefit of the entire community. Rev. Rul. 115.
An organization formed by residents of a city 1975-1 CB 156. the library's primary support qualifies for
cooperating with municipal authorities in exemption. Rev. Rul. 75-196, 1975-1 CB 155.
preserving, beautifying, and maintaining a A trust created by an exempt hospital for the
public park located in the center of the city. sole purpose of accumulating and holding Political Organizations
The park was commonly used by citizens of funds to be used to satisfy malpractice claims
the entire city. Activities included the planning against the hospital. Rev. Rul. 78-41, 1978-1 A nonprofit organization formed to conduct
of the design of the park, horticultural CB 148. public forums at which lectures and debates on
plantings, design of trash containers, mowing social, political, and international matters are
of grass, and removal of litter. Rev. Rul. 78- An otherwise qualifying nonprofit presented with the inclusion of controversial
85, 1978-1 CB 150. organization that operates a health care facility speakers. Rev. Rul. 66-256, 1966-2 CB 210,
for patients under the care of Christian Science amplified by Rev. Rul. 86-95.
practitioners; receives its income principally
An otherwise qualifying organization engaging
from contributions, patients, fees, Medicare, A university that provides facilities and faculty
in legal research concerning means of
Medicaid, and health insurance; and, as funds advisers for a campus newspaper that
adjusting and resolving international
permit, accepts patients who are unable to pay. publishes the students' editorial opinions on
environmental disputes and arranging for, and
Rev. Rul. 80-114, 1980-1 CB 115. political and legislative matters. Rev. Rul. 72-
participating in, the resolution of such disputes
through mediation. Rev. Rul. 80- 279, 1980-2 513, 1972-2 CB 246.
An otherwise qualifying nonprofit
CB 176.
organization that was created ton construct, An organization operating a broadcasting
maintain, and operate, or lease, a public station presenting religious, educations, and
An organization that provides funds to a
hospital and related facilities for the benefit of public interest programs that provide
county's law enforcement agencies to police
a city and the surrounding communities. Rev. reasonable air times equally available to all
illegal narcotic traffic. Rev. Rul. 85-1, 1985-1
Rul. 80-309, 1980-1 CB 183. legally qualified candidates for election to
CB 177.
public office. Rev. Rul. 74-574, 1974-2 CB
A nonprofit hospital that is not required to 160.
An organization that provides legal assistance
operate an emergency room where a state or
to guardians ad litem who represent abused
local health planning agency has found that A nonprofit organization formed to preserve
and neglected children before a juvenile court
this would unnecessarily duplicate emergency the natural environment by acquiring, by gift
that requires their appointment. Rev. Rul. 85-
services and facilities that are adequately or purchase, ecologically significant
2, 1985-1 CB 178.
provided by another medical institution. Rev. undeveloped land, and either maintaining the
Rul. 83-157, 1983-2 CB 94. land with limited public access or transferring
Health Care
the land to a government conservation agency
A nonprofit organization whose purpose and Public Benefit by outright gift or being reimbursed by the
activity are providing hospital care. Rev. Rul. agency for its cost. Rev. Rul. 76-204, 1976-1
69- 545, 1969-2 CB 117, amplified by Rev. A nonprofit community nursing bureau
CB 152, distinguished by Rev. Rul. 76-384.
Rul. 83- 157. operated as a community project, which
maintains a register of qualified nursing
An organization formed to promote
A nonprofit organization formed by a medical personnel, including graduate nurses,
rehabilitation of a badly deteriorated
staff of an exempt hospital to carry on a unregistered nursing school graduates, licensed
residential area within a large city by
charitable program of benefit to the hospital. attendants, and practical nurses, for the benefit
encouraging homeowners to make use of
Rev. Rul. 69- 631, 1969-2 CB 119. of hospitals, health agencies, doctors and
small, short-term, interest-free loans to make
individuals. The bureau receives its primary
repairs necessary to meet local housing
A nonprofit organization operating a clinic to financial support from various community
regulations, where the homeowners are
aid victims of hallucinatory drugs and organizations and public contributions. Rev.
otherwise unable to obtain loans for repairs.
providing information concerning such drugs. Rul. 55-656, 1955-2 CB 262, distinguished by
Rev. Rul. 76- 408, 1976-2 CB 145.
Rev. Rul. 70- 590, 1970-2 CB 116. Rev. Rul. 61-170.
SUGGESTED READING MATERIAL
An organization providing a residence facility An organization formed to provide financial
and therapeutic "group living program" for assistance to different types of exempt
This reading list contains selected citations to
individuals recently released from a medical organizations and which carries on no
works from the Foundation Center's
condition. Rev. Rul. 72-16, 1972-CB 143. operations other than to receive contributions
bibliographic database, Catalog of Nonprofit
and incidental investment income. Rev. Rul.
Literature, on the topic of family foundations.
A nonprofit organization formed as a qualified 67-149, 1967-1 CB 133.
For a complete bibliography on this topic,
"home health agency" to provide low-cost including materials from earlier years, use
home health care for people of a community. An organization that distributes funds to
Catalog of Nonprofit Literature, entering the
Rev. Rul. 72-209, 1972-1 CB 148. nonexempt organizations but retains control
subject headings "family foundations",
and discretion over use of the funds for exempt
"foundations — management", or "foundations
An organization formed and supported by purposes. Rev. Rul. 68-489, 1968-2 CB 210.
— establishment and termination" in the
residents of an isolated rural community to subject search field box. You may also search
provide a medical building and facilities at a A nonprofit organization, created to construct
by the name of a specific foundation.
reasonable rent to attract a doctor who would and maintain a building for the exclusive
provide medical services to the entire purpose of housing and serving exempt
community. Rev. Rul. 73-313, 1973-2 CB 174. member agencies of a community chest. Rev.
Starting a Foundation
Rul. 69-572, 1969-2 CB 119.
A nonprofit organization that operates a free Beggs, Sara. How to Start a Private
computerized donor authorized retrieval An organization operating a law library whose
Foundation. Washington, DC: Association
system to facilitate transplantation of body rules limit access and use to members of the
of Small Foundations, 2005. 17 p.
organs upon a donor's death. Rev. Rul. 75-197, legal profession in the municipality, providing
Instructions regarding legal structure, "user-friendly" explanations. Some of the Foundation Library: Grantmaking.
tax-exemption, state registration, and other topics explained are rules about charitable Washington, DC: Council on Foundations,
technical issues related to U.S. law. deductions, excise taxes, self-dealing, 1997. x, 131 p. (Family Foundation Library
minimum payouts, international grantmaking, series).
Edie, John. First Steps in Starting a and the 990-PF. This volume is not intended to Provides case studies of the grantmaking
Foundation. 5th ed. Washington, DC: discuss every type of legal problem a family programs of several family foundations.
Council on Foundations, 2001. foundation could face but rather focuses on Discusses choosing a grantmaking style,
Written for the non-lawyer, the donor, and those rules that are unique to private building an effective grantmaking capability,
the person seeking advice on establishing a foundations and the process of grantmaking assessing and evaluating grants, developing
foundation. Edie discusses in detail the from the perspective of family philanthropy. relationships with other grantmakers, and
numerous types of organizations that are all family relationships when working as
generally labeled as foundations by the public, Gast, Elaine. Built on Principle: A Guide to philanthropists. Includes samples of letters and
and the requirements for establishing, and Family Foundation Stew ardship. forms used by grantmakers, as well as a
regulations governing, each type. Washington, DC: Council on Foundations, glossary and index.
2006. xiii, 211 p.
Esposito, Virginia (ed.) Splendid Legacy: Gast presents nine stewardship principles
The Guide to Creating Your Family and practices to guide foundation leaders, Intergenerational Issues
Foundation. Washington, DC: National whether they are staff or trustees. The tenets
Center for Family Philanthropy. 2002. vii, relate to governance, ethics, accountability, Gersick, Kelin E. Generations of Giving:
258 p. and family legacy. Sample documents and Leadership and Continuity in Family
The book is composed of contributions by forms, worksheets, and checklists are included Foundations. Lanham, MD: Lexington
various specialists on topics ranging from throughout. Books, 2004. xix, 283 p.
start-up to grantmaking, and is illustrated Published in collaboration with the National
throughout with examples and lessons from Freeman, Douglas; Hausner, Lee. A Center for Family Philanthropy, the volume
those involved with family philanthropies. Founder's Guide to the Family Foundation: provides a research study of 30 family
Some of the issues discussed include founder's How to Use, Enjoy and Govern Your foundations. The case histories look especially
vision, values and ethics; legal concerns; how Family Foundation. 2nd ed. Washington, at the formative years, and how family
to fund the foundation; governance; use of DC: Council on Foundations, 2005. x, 39 p. members became involved in leadership--and
consultants; investments; establishing A basic primer that includes discussions of transitions--over the life of the philanthropy.
grantmaking priorities; and public relations. foundation governance, grantmaking, the role
of family members, transferring leadership, Goldberg, Alison; Pittelman, Karen.
and terminating the foundation. Appendices Creating Change Through Family
Management and Governance include sample grant application forms and a Philanthropy: the Next Generation.
bibliography. Brooklyn, NY: Soft Skull Press, 2006. xv,
Born, Jason (ed.) Investment Issues for 168 p.
Family Funds. Washington, DC: National McCoy, Jerry J. and Kathryn W. Miree. The authors conducted interviews with
Center for Family Philanthropy. 1999. xi, Family Foundation Handbook. Chicago, IL: young people across the U.S. on the topic of
169 p. CCH Incorporated, annual. their families' philanthropy. The resulting book
Published as volume 2 of the "National A handbook for financial and legal advisors is a primer explaining how the younger
Center Journal". Chapters are "Considering the to family philanthropies, but also provides generation can participate in personal
Question of Perpetuity"; "Developing a information and guidance of interest to philanthropy with their families. The book
Spending Policy"; "Funding a Foundation"; laypeople. Covers basic legal and fiscal explains how a foundation works and how
"Avoiding Conflicts of Interest and matters such as tax benefits, types of young people can get involved with
Self-Dealing"; "Training the Next foundations, supporting organizations, the decision-making. Throughout, it is presumed
Generation"; "Understanding Trustee steps to creating a foundation, the role of that the next generation will seek to improve
Responsibilities and Duties"; "Developing and charitable trusts, structure and governance of the management of the foundation, so many
Overseeing an Investment Strategy"; the philanthropy, operating restrictions, worksheets and checklists are provided.
"Selecting and Working with Investment grantmaking, administration, and special
Advisors"; "Thinking About Mission-Related issues. Provides numerous worksheets, forms,
Investing". Includes bibliographic references and tables, as well as IRS statutes and
and glossary of investment terms. Treasury Department regulations.
Buhl, Alice C.; Healey, Judith K. Family

Foundation Retreat Guide. Washington, Grantmaking
DC: Council on Foundations, 2006.
Comprehensive guide for family Best Practices in Grants Management: A
foundations considering their first board retreat Project of the Grants Managers Network.
or looking for ways to have more effective Washington, DC: Council on Foundations,
retreats. Explains how to structure a retreat and 2001.
how to find a good facilitator. Includes A manual designed to assist grantmakers in
bibliographic references. the entire spectrum of the grants process
ranging from pre-grant activities, approvals
Edie, John A. Family Foundations and the and notifications, through grant monitoring.
Law: What You Need to Know. 3rd ed. Sample letters and forms for each stage are
Washington, DC: Council on Foundations. provided. Includes glossary, bibliographic
2002. vii, 80 p. references, and an index.
Identifies legal issues of concern for
members of family foundations and provides Foote, Joseph; Knowles, Louis L. Family
GLOSSARY
509(a) DONOR
Section of the tax code that defines public charities (as One who makes a gift or who creates a trust. (See
opposed to private foundations). A 501 (C)(3) Grantor)
organization must also have a 509(a) designation to
further define the agency as a public charity. ENDOWMENT
The principal amount of gifts and bequest that are
ANNUAL REPORT accepted subject to a requirement that the principal be
A voluntary report published by a foundation or maintained intact and invested to create a source of
corporation describing its grant activities and income. Donors may require that they remain intact in
application procedures. It may be a simple typed perpetuity, or for a defined period of time or until
document listing the year's grants or an elaborately sufficient assets have been accumulated to achieve a
detailed publication. A growing number of foundations designated purpose.
and corporations use an annual report as an effective
means of informing the community about their EXCISE TAX
contributions activities, policies and guidelines. (The The annual tax of 1 or 2 percent of net investment
annual contributions report is not to be confused with income that must be paid to the IRS by private
a corporation's annual report to the stock holders.) foundations.
BYLAWS EXPENDITURE
Guidelines for the operation of a non profit corporation, RESPONSIBILITY
developed according to the state law requirements. When a private foundation makes a grant to an
Bylaws often provide methods for the selection of organization that is not classified by the IRS as tax
directors, the creation of committees and the conduct of exempt under Section 501(c)(3) and as a public charity
meetings. according to Sections 509(a), it is required by law to
ensure that the funds are spent for charitable purposes
CHARITABLE TRUST and not for private gain or political activities. Such
A Charitable trust is an express trust established for the grants require a pre-grant inquiry and a detailed written
purpose of accomplishing social benefit for the public agreement. Special reports on the status of the grant
or the community. Also, it is the only type of trust that must be filed with the IRS, and the organizations must
can last indefinitely. be listed on the foundation's 990-PF. Because such
grants require additional work and responsibility, many
CHARITY foundations will not make grants to organizations that
In its traditional legal meaning, the word "charity" are not public charities under section 509(a).
encompasses religion, education, assistance to the
government, promotion of health, relief of the poverty FAMILY FOUNDATION
or distress and other purposes the benefit the A private foundation whose funds are primarily derived
community. from members of a single family. At least one family
member must continue to serve as an officer or board
CONVEYANCE member of the foundation and play an influential role in
Any transfer by deed or will of legal or equitable title to grant making decisions throughout the foundation's life.
real property from one party to another e.g., from one
person to another person, a corporation, a foundation, or FEDERAL—EMPLOYER
the government. IDENTIFICATION NUMBER
A number that must be obtained from the I.RS. for each
DISQUALIFIED PERSON individual estate or trust.
Substantial contributors to a private foundation,
foundation managers, certain public officials, family FIDUCIARY
members of disqualified persons and corporations and A person who is appointed to serve in a position of trust
partnerships in which disqualified persons hold and who controls and manages property exclusively for
significant interests. Financial transactions between the benefit of others.
disqualified persons and foundations are in violation of
self- dealing rules, except as specified by law. FINANCIAL REPORT
An accounting statement detailing financial data,
DONEE (See Grantee) including income from all sources, expenses, assets, and
liabilities. A financial report may also be an itemized
accounting that shows how grant funds were used by a foundation's managers have "failed to exercise ordinary
donee organization. Most foundations require a business care and prudence."
financial report from grantees.
LETTER OF INTENT
FORM 990-PF A grantor's letter or briefing statement indicating
The IRS form filed annually by all private foundations. intention to make a specific gift.
The letters "PF" stand for "Private Foundation." The
IRS uses this form to determine if a private foundation OPERATING FOUNDATION
is complying with the Internal Revenue code. The 990- A type of private foundation that carries out its own
PF form lists foundation assets,receipts, expenditures, charitable programs rather than making grants to other
compensation of officers and a list of grants made organizations to accomplish charitable purposes. To
during the year. qualify as an operating foundation, specific rules, in
addition to the applicable rules for private foundations,
FUNDING CYCLE must be followed.
A Chronological pattern of proposal review, decision-
making and applicant notification. Some donor PAYOUT REQUIREMENT
organizations make grants at set intervals (quarterly, The minimum amount that a private foundation is
semi-annually, etc.), while others operate under an required to expand for charitable purposes (includes
annual cycle. grants and necessary and reasonable administrative
expenses). In general, a private foundation must
GIVING PATTERN annually pay out approximately 5 percent of the average
The overall picture of the types of projects and market value of its assets.
programs that a donor has supported historically. The
past record may include areas of interest, geographic PHILANTHROPY
locations, dollar amount of funding or kinds of Philanthropy is defined in different ways. The origin of
organizations supported. the word philanthropy is Greek and means love for
mankind. Today, philanthropy includes the concept of
GRANT voluntary giving by an individual or group to promote
The award of funds to an organization or individual to the common good. Philanthropy also commonly refers
under take charitable activities. to grants of money given by foundations to nonprofit
organizations. Philanthropy addresses the contribution
GRANT MONITORING of an individual or group to other organizations that in
The ongoing assessment of the progress of the activities turn work for the causes of poverty or social problems-
funded by a donor, with the objective of determining if improving the quality of life for all citizens.
the terms and conditions of the grant are being met and Philanthropic giving supports a variety of activities,
if the goal of the grant is likely to be achieved. including research, health, education, arts and culture,
as well as alleviating poverty.
GRANTEE
The individual or organization that receives a grant. PLEDGE
A promise to make future contributions to an
GRANTOR organization. For example, some donors make multi-
The individual or organization that makes a grant. year pledges promising to grant a specific amount of
money each year.
GUIDELINES
A statement of a foundation's goals, priorities, criteria POST-GRANT EVALUATION
and procedures for applying for a grant. A review of the results of a grant, with the emphasis
upon whether or not the grant achieved its desired
IN-KIND CONTRIBUTION objective.
A donation of goods or services rather than cash or
appreciated property. PRELIMINARY PROPOSAL
A brief draft of a grant proposal used to learn if there is
JEOPARDY INVESTMENT sufficient interest to warrant submitting a proposal.
An investment that is found to have jeopardized a
foundation's purposes. The result of a jeopardy PRIVATE FOUNDATION
investment may be penalty taxes imposed upon a A non-governmental, nonprofit organization with funds
foundation and its managers. While certain types of (usually from a single source, such as individual, family
investments are subject to careful examination, no one or corporation) and program managed by its own
type is automatically a jeopardy investment. Generally, trustees or directors, that was established to maintain or
a jeopardy investment is found to be made when a aid social, educational, religious or other charitable
activities serving the common welfare, primarily The transfer of stock from one person to another by sale
through grant making. "Private Foundation" also means or gift handled by a party designated by the trust or
an organization that is tax-exempt under section corporation called a transfer agent (often a bank).
501(c)(3) of the tax code and is classified by the IRS as
a private foundation as defined in the code. TAX-EXEMPT
ORGANIZATIONS
PROGRAM-RELATED INVESTMENT Organizations that do not have to pay state and/or
A loan or other investment made by a grant making federal income taxes. Organizations other than churches
organization to a profit making or nonprofit seeking recognition of their status as exempt under
organization for a project related to the foundation's Section 501(c)(3) of the Internal Revenue Code must
stated purpose and interests. Program-related apply to the Internal Revenue Service. Charities may
investments are often made from a revolving fund; the also be exempt from state income, sales and local
foundation generally expects to receive its money back property tax.
with limited or below-market interest, which will then
provide additional funds for loans to other TECHNICAL ASSISTANCE
organizations. A program-related investment may Operational or management assistance given to a
involve loan guarantees, purchases of stock or other nonprofit organization. It can include fund-raising
kinds of financial support. assistance, budgeting and financial planning, program
planning, legal advice, marketing and other aids to
QUERY LETTER management. Assistance may be offered directly by a
Also referred to as a letter of inquiry, this is a brief foundation or corporate staff member or in the form of
letter outlining an organization's activities and a request a grant to pay for the services of an outside consultant.
for funding sent to a prospective donor to determine if (See In-Kind Contribution.)
there is sufficient interest to warrant submitting a full
proposal. This saves the time of the prospective donor TRUSTEE
and the time and resources of the prospective applicant. The person(s) or institution responsible for the
(See Preliminary Proposal) administration of a trust.
RESTRICTED FUNDS TRUST INSTRUMENT

Assets or income that is restricted in its use, in the types Any writing under which a trust is created, such as a
of organizations that may receive grants from it or in the will, trust agreement, or declaration of trust.
procedures used to make grants from such funds.
TRUST INVESTMENTS
SEED MONEY A broad term that includes not just securities but all
A grant or contribution used to start a new project or kinds of property in which trust funds are invested.
organization.
TRUST POWERS
SELF-DEALING The authority to engage in the trust business.
An illegal financial transaction between a private
foundation and a disqualified person(s). There are a few TRUST PROPERTY
exceptions to the self-dealing rule, including the Also called the trust corpus, res, fund, estate, or subject
compensation of disqualified persons by a foundation matter of the trust. The property interest that the trustee
for services that are necessary and reasonable. holds subject to the right of someone else.
SITE VISIT
Visiting a donee organization at its office location or * Council on Foundations
area of operation and/or meeting with its staff or
directors or with recipients of its services. * The Law of Tax-Exempt Organizations by John
Hopkins
SOCIAL INVESTING (ALSO REFERRED TO AS
ETHICAL INVESTING AND SOCIALLY * Family Foundations & the Law by John Edie
RESPONSIBLE INVESTING)
The practice of aligning a foundation's investment
policies with its mission. This may include making
program-related investments and refraining from
investing in corporations with products or policies
inconsistent with the foundation's values.
STOCK TRANSFER

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THE

I am only one, but I am One. I can't do everything, but I can

Welcome to the dynamic world of philanthropy. Since the beginning of

This simple guide is a navigational tool to help your Family Foundation

To distinguish between the two, a vision statement expresses an

“ Complete vision statement with the Board of Trustees so the

“ Complete mission statement with the Board of Trustees so the

“ Make a copy to include in the IRS Form 1023 (Tab 6).

“ File mission statement behind Mission Statement tab.

Family Foundation Installation Checklist — Page 1 of 6.

As a whole, the Board works to oversee all aspects of the foundation's

The epitaph on a seventeenth century tomb at London's Westminster

“ Sign and notarize Family Foundation documents.

“ Sign and notarize Quitclaim (if applicable).

“ File Quitclaim at the County Recorder (if applicable).

FINANCIAL INVESTMENT INFORMATION

“ Prepare a copy of the bank resolution minute.

Family Foundation Installation Checklist — Page 2 of 6.

In order to guide and instruct Trustees about the proper management of

“ Read and study reports.

Publications are downloadable at

“ Complete Attorney General Initial Registration Checklist

“ Reviewed and completed Form 1023 checklist?

“ Prepared the application for mailing? (See Where To File

“ Shown the organization's Employer Identification Number (EIN)?

Family Foundation Installation Checklist — Page 3 of 6.

“ Included a conformed copy of the complete organization

“ Had the application signed by one of the following? a.) An officer

“ Enclosed financial statements (Part IV)? (a.) Current year (must

Note: During the technical review of your Family Foundation Application, it

In addition, you will have to:

“ Apply for the Employer Identification Number for the foundation.

“ File 990 PF with the IRS

“ Make available the 990-PF report each year—including a

Family Foundation Installation Checklist — Page 4 of 6.

The vast majority of Family Foundations expect to exist in perpetuity. The

Understanding the opportunities and the challenges of this continuing

“ Develop a plan for continuity.

“ Write the story of your family.

“ Record your Family Foundation mission and vision.

“ Record the organizational structure and leadership.

“ Identify, document and develop successors.

“ Plan the annual retreat.

“ Create a family tree.

“ Explore charitable opportunities and document all activity with

“ Record significant family stories, events, and accomplishments.

“ Organize and plan a family history project.

“ Record charitable site visits.

Family Foundation Installation Checklist — Page 5 of 6.

Setting up and governing a foundation is a comparatively simple matter

It is important to become a successful Trustee, and to successfully manage

Success as a Trustee also involves becoming disciplined in your training

cONGRATULATIONS on completing the installation of the Family

We conclude with a quote from the Father of our Country, George

“Discipline is the soul of an army. It makes small numbers formidable;

This publication is designed to provide accurate and authoritative information in regards

Family Foundation Installation Checklist — Page 6 of 6.

The name of this Trust shall be the "Ë Foundation".

The Ë Foundation is created exclusively for charitable, religious, scientific,

Ë FOUNDATION TRUST AGREEMENT PAGE 1 of 10.

(b) Income or principal derived from contributions by corporations shall be

Ë FOUNDATION TRUST AGREEMENT PAGE 2 of 10.

Date: _//_ Time: _ Location: ________________

____________________ Trustee Date: _

____________________ Trustee Date: _

Date: _//_ Time: _ Location: ________________

Date: _//_ Time: _ Location: ________________