AHRF Field of Interest Funds
Definition
A field of interest fund is an endowed fund established under an arrangement with the American Hearing Research Foundation (the Foundation) by an irrevocable gift to the Foundation fro the benefit of nonprofit organizations in one or more fields as agreed with the Foundation at the time the fund is created, such fields being among those acceptable to the Foundation for its own grantmaking purposes.
Policies for Field of Interest Funds
- Establishment of Field of Interest Funds
A field of interest fund is established under an agreement between the donor (or donors) and the Foundation for the donation of money or property to the Foundation from an individual or an organization to further or carry out the charitable purposes of the Foundation.
Each field of interest fund shall be the property of the Foundation. The Foundation shall have the ultimate authority over and control of all property in the fund, and the income derived therefrom, for the charitable purposes of the Foundation. Each fund shall be recorded on the books of the Foundation as a separate fund and may be named by the donor.
- Limitations
Since the Foundation’s purpose is to support research related to hearing and balance disorders related to the inner ear, the Foundations Board of Directors must similarly serve the people of the County.
The minimum amount to establish a field of interest fund is $100,000. Following IRS regulations, the Foundation cannot certify to a donor the value of a contribution of property.
Distributions shall be made only from the net income of a field of interest fund. No distributions will be made from the principal of the fund or from capital appreciation. The Foundation, as a public charity, shall not make any distribution from a designated fund except as a distribution from the Foundation for its charitable purposes; the Foundation may not be legally bound my any pledge made by a donor.
- Investment of Assets
The Foundation has the responsibility and authority for the investment of the assets of each advised fund. The assets of any fund may be commingled with those of other funds of the Foundation for investment purposes.
Decisions with respect to the retention, investment, or reinvestment of assets or commingling of assets shall be made by the Board of Directors or by a committee or agent authorized by the Board, in accordance with the Foundation’s investment policies.
- Exceptions
Any exceptions to these policies require approval by the Board of Directors.
Procedures for Field of Interest Funds
- Preliminary Discussion with Potential Donor
When a potential donor expresses an interest in establishing a field of interest fund, the staff will ascertain the donor’s wishes and objectives and will acquaint the donor with the Foundation’s current policy and procedures, including requirement for an appropriate agreement to establish a field of interest fund.
- Additional Contributions
Any donor may make additional contributions to an established field of interest fund without a new agreement.
- Approval in Concept
If the donor wishes to proceed, the staff will notify the Finance Committee and request approval in concept and authority to proceed with drafting an agreement.
- Staff Review and Report
The staff will review the proposal, determine that it is in accord with the Foundation’s established purposes and policies, that each proposed beneficiary is a public benefit charity under section 501(c) (3) of the Internal Revenue Code, and that each meets the Foundation’s normal standards for acceptable grant recipients.
The staff will prepare a report of its findings and recommendations, including a draft agreement for the recommendation of the Finance Committee (or the chairperson acting on its behalf) and subsequent submission to the Board of Directors.
- Board Approval and Authorization
The recommendations of the committee and staff with be presented to the Board of Directors for action. If the Board approves the creation of the field of interest fund, it will authorize an officer of the Foundation, or its Executive Director to sign the agreement and accept the donation on behalf of the Foundation.
- Investment Review
The Foundation’s Finance Committee shall review the investment of the fund annually to determine if asset allocation is appropriate for the purposes of the fund.
The fund will be valued on December 31 for to following calendar year. In January, all fees will be deducted and income distributed to the designated recipients.
At that time, the donor shall be provided with summary information on the investment of the fund and shall be accorded the opportunity to express views thereon if desired.
- Allocation of Income
- The income from the field of interest fund will be accrued for a full calendar year. In January of each year, the staff will determine the amount available for distribution for each field of interest that year.
- Field of interest funds: Research Related to Presbycusis
Funds designated for research related to presbycusis will be allocated in addition to the Foundation’s regular research program. Research projects must meet the Foundation’s Research Committee’s requirements. - Field of Interest Fund: Grants
The Foundation’s Research Committee will make its preliminary recommendations for funding without respect to the availability of supplemental funds. After the final proposals have been reviewed, the Research Committee will be advised of any additional, donor-restricted funds that are available for grants within the specified field of interest. At that time, the Research Committee will recommend allocations of some or all of the field of interest funds to any appropriate proposals, either as the sole funding or as a supplement to the Foundation funds allocated to the same grantees. Such recommendations will be subject to the approval of the Board of Directors.
If there are no relevant proposals within the specified field of interest, the funds will be made available for the next applicable cycle of funding.
Field of interest funds of less than $1 million must be designated for one or more of the Foundation’s stated fields of interest. If the Foundation’s stated fields of interest change following the creation of a fund, the donor’s original intent will take precedence for the purpose of grantmaking. Fields of interest funds greater than $1 million must fall within the Foundation’s mission and general charitable purposes, but can be tailored to meet the donors preferences throught a separate application process.
8. Distributions to be Current
An amount approximately equal to the net income of a designated fund shall be distributed during the fiscal year in which such net income is realized or before the end of the next fiscal year, unless the Board of Directors determines that it is in the best interest of the Foundation to accumulate net income, in whole or in part, for a specific project which will be accomplished in a reasonable period of time.
- Expenses of Management and Administration
There shall be an annual administrative fee for donor designated funds based on the current fee policies of the Foundation. The fee is payable on January 1 and is based on the preceding December 31 market value. The fee is for the calendar year commencing January 1st, and shall be drawn from the income of the fund. In addition, the fund shall pay its proportionate share of the investment fees charged by the Foundation’s professional money managers.
- Notification to Guarantee as to Source of Distribution
Unless otherwise requested by the donor of the fund, any distribution shall identify to the grantee the name of the fund from which the distribution is made.
- Annual Report of Distribution
A report of all distributions from all field of interest funds shall be included in the annual report of the Foundation and may be included in other publications from time to time.