Stony Brook Foundation Fund Agreement Process & Approval
Fund Name:
Development Officer:
A. Drafting Process
1. Select template: Current Use/Endowed; Scholarship; MOU;
Amendment
2. Do not alter boilerplate/existing template language (or, if
needed, use tracked changes)
3. Input specifics from proposal/donor/department
4. If creating an amendement, attach all previous
agreements/amendements
5. Any University commitment required for the gift should be
discussed with appropiate SBU area(s)
B. Approval ProcessAPPROVAL DATE:
*
1.
2.
3.
4.
1. Secure your dean’s and manager’s approval
2. Email draft with this routing page to Jason and cc Megan and
Sam for SBF review and Donor Relations review as needed. Jason and
Megan will provide feedback within 72 hours.
3. *Email draft with this routing page to Dexter for review and
approval (for funds of $100k+).
4. Share the draft with your donor after all internal approvals
have been secured.
5. Reroute to Jason and Megan if donor has changes until a final
draft is agreed upon and then send to Dexter for final approval as
needed.
C. Signature Routing Process
1. Send two copies to donor to sign and date
2. Once received with donor signature, route the two copies of
the agreement for all internal signatures with a short-form account
application
3. Submit one finalized original and the account application to
SBF (donor keeps other original)
THIS TEMPLATE SHOWS THE CHANGES THAT ARE NEEDED IF A GIFT IS TO
BE MADE THROUGH A DONOR ADVISED FUND. NEEDED CHANGES ARE
HIGHLIGHTED IN YELLOW. THESE CAN BE APPLIED TO ANY TYPE OF
AGREEMENT.
[Fund Name] Endowment Fund Agreement
I. EstablishmenT
[DONOR(S)] (the “Donor[s]” or “Recommenders”) and the Stony
Brook Foundation (“SBF” or the “Foundation”) hereby agree to
establish the Fund Name (the “Fund”). This Fund shall be managed
exclusively by the Foundation for the sole benefit of Stony Brook
University (“Stony Brook”). This agreement shall be legally binding
by and between the aforementioned parties, and its contents shall
remain private and confidential. Any information contained herein
may only be disclosed with express permission of the Donor and the
Foundation, and such permission shall require prior written consent
of all parties to this contract.
II. BackgroundThis section should have information about the
program/department/research the endowment will support and may be
consistent with language in the proposal. The donors’ wishes and
what they intend to accomplish through their philanthropy should be
documented and outlined with specific information and examples.
III. PurposeUse this section to define how the funds will
support the program/department/research and what criteria need to
be met (ie: recruitment of additional faculty, operational support
for the department/program, unrestricted use at the discretion of
the holder). If the donor is seeking to award a particular
underrepresented group, refer to the “Legal Guidance and Language
for Awarding a Particular Underrepresented Group” for
assistance.
The minimum gift required to establish an endowment is dependent
upon the type and purpose of the endowment created, and minimum
levels in effect at the time. Minimum endowment levels are subject
to change. Please see current Stony Brook University Minimum
Endowment Levels.
FOR CONSORTIUM GIFTS WITHOUT MIN PLEDGED: If the endowment
minimum is not met through the original gift and/or signed pledges,
the funds will be deposited into a current use account until the
minimum endowment funding requirements are met. As such, the
following language is required (ONLY) in all such endowment
agreements:
All donations made will be held in a current use account until
the $______ threshold is reached, at which point the account will
be converted into an endowment. If the endowment is not funded in
full or does not have commitments that will reach the total of
$____ by June 30, 20[XX] (within five (5) years), the funds will
remain in the current use account and will be spent adhering as
closely as possible to the purpose outlined in this section.
Gift minimums and requisite approvals for naming a college,
school, department, institute, center, bureau, classroom,
laboratory, or other physical space shall be consistent with
applicable policies established by the State University of New York
system and/or other applicable University policies.
IV. FundingThe Donor[s] hereby agrees to recommend the sum of
$[_________] from the {NAME OF Donor Advised Fund} through [_____]
annual installments estimated to be $[_______] each. The Donor[s]
may accelerate recommendations at any time to fulfill this schedule
in full before June 30, 20[XX]. (A gift to create a new endowment
may be made in the form of multi-year payments over a period of up
to five (5) years.)
For endowments establishing centers or institutes or where
otherwise applicable:
In addition, Stony Brook University agrees to provide
[explanation of institutional investment].
V. InvestmentAll contributions to the [FUND NAME] may be, for
investment purposes, merged with any of the investment assets of
Stony Brook Foundation, but these gifts shall be entered in the
Foundation’s books and records as the [FUND NAME].
Distributions shall be made in the manner and amount provided
for in the policies established for such endowment funds by the
Stony Brook Foundation Board of Trustees and shall be used for the
purposes authorized by this agreement. The investment, management,
and expenditure of all funds shall be in accordance with the Stony
Brook Foundation policies and procedures. The Stony Brook
Foundation Board of Trustees, implements an investment strategy
that is designed to protect the endowment principal and ensure
long-term, steady support for the programs as well as ongoing
growth of the endowment.
VI. AdministrationThe [AREA VP/DEAN/PROVOST
OF___________________], or his or her designee, shall be the
administrator of this Fund. Expenditures relating to it shall be
subject to the Stony Brook Foundation’s accounting procedures and
guidelines, which are subject to change by the Board of Trustees in
order to remain in compliance with Federal and State laws and
regulations.
The Stony Brook Foundation adheres to the New York Prudent
Management of Institutional Funds Act, (“NYPMIFA”), which allows
the Foundation to spend endowment funds below their original dollar
amount (“historic dollar value”) if the Foundation’s Board of
Directors concludes that such spending is prudent. (For more
information, see
http://www.charitiesnys.com/pdfs/nypmifa-guidance2011.pdf.).
Any investment returns on the original gift that exceed the
amount disbursed under Stony Brook Foundation’s spending rules and
policies shall be reinvested as part of the endowment Fund in order
to grow the principal; this shall not be considered as additional
gifts for purposes of NYPMIFA in determining the original value
(also known as the “historic dollar value.”)
Any fees assessed in relation to this Fund shall remain the sole
property of the Foundation and may only be disbursed exclusively to
further the Foundation’s mission as determined by the Stony Brook
Foundation Board of Trustees.
VII. AmendmentThis agreement may be amended by the mutual
consent of the Stony Brook Foundation and the Donor[s] or their
designee. This agreement may be altered or amended only by a
subsequent agreement executed in writing by the Donor[s] and the
Stony Brook Foundation. This agreement shall be constructed in
accordance with and subject to the governing laws of the State of
New York.
If changed circumstances should at some future time cause the
continuation of the Fund to be inappropriate or impractical, and
the Donor[s] are deceased, then the Foundation, in consultation
with the Stony Brook, may re-designate the purpose of the funds,
provided that the Fund [if naming is involved and appropriate]
shall continue to bear the name of the Donor[s] and that the
amended terms shall adhere as closely as possible to the Donor[’s
or s’] original intent.
This Agreement constitutes the entire agreement of the parties
with respect to its subject matter and sets forth completely the
terms, conditions, and purposes of the funds. This Agreement shall
be binding upon the parties hereto, including their heirs,
successors, assigns, executors, and personal representatives. If
any term, condition, or other provision of this Agreement is found
to be invalid or incapable of being enforced by any court of
competent jurisdiction, all other terms, conditions, and provisions
of this Agreement shall nevertheless remain in full force and
effect.
DONOR(S):
FOR Stony Brook University:
______________________________
Donor Date
______________________________
Area VP/Provost Name Date
Title
______________________________
Donor Date
______________________________
Area Dean Name Date
Title
______________________________
Designee of the Fund (if not the Area Dean) Name
Title Date
FOR Stony Brook Foundation, Inc.:
______________________________
Dexter Bailey, Jr. Date
Executive Director
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