FundSvcs Community

We have some old endowment agreements with exclusive or outdated restrictions that can impact their ability to be awarded out to students and programs. Donors for most of these types are now deceased. Who, if anyone, would be able to adjust things like restrictions or designations for outdated endowments? In that same vein, if an heir to the creator of the original endowment expresses interest in changing an endowment, do they have any stake in that process? -- *J**AYME** F* *ANCHER*Development Data Specialist jaymefancher@pointloma.edu (619) 849-7031 Office of University Advancement 3900 Lomaland Drive | San Diego, CA 92102 pointloma.edu/give

This is a question you must pose to your attorney. State laws often have jurisdiction over these issues. I can say that from experience, whoever was granted legal authority over the estate has this authority. An heir does not necessarily. The will would indicate who has the authority to transact business on behalf of the estate and deceased. John John H. Taylor Principal John H. Taylor Consulting, LLC 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Tue, Sep 10, 2019 at 3:14 PM Jayme Fancher < 00000046036e8061-dmarc-request@listserv.fundsvcs.org> wrote: > We have some old endowment agreements with exclusive or outdated > restrictions that can impact their ability to be awarded out to students > and programs. Donors for most of these types are now deceased. Who, if > anyone, would be able to adjust things like restrictions or designations > for outdated endowments? > > In that same vein, if an heir to the creator of the original endowment > expresses interest in changing an endowment, do they have any stake in that > process? > > -- > > *J**AYME** F* > *ANCHER*Development Data Specialist > jaymefancher@pointloma.edu > (619) 849-7031 > > > > Office of University Advancement > > 3900 Lomaland Drive | San Diego, CA 92102 > > pointloma.edu/give > > > > >

Hi, Jayme, I have experienced this before. I agree with John that you’ll want to involve an attorney. Next, your board will actually have to vote on it, but read the document carefully. If the fund uses the word, “permanent” or anything else that makes the contract rigid forever, then you may just have an endowment. A donor’s heir doesn’t necessarily have the kind of control over an endowment the way that he would over inherited personal property, because the endowment is not inherited. You’re in a sticky spot! But you’re not alone: Harvard has a scholarship made available to anyone who goes there to become a Puritan minister. The fund is perpetual, and not a dollar of its earnings can be spent. --Marianne ________________________________________ Marianne M. Pelletier Staupell Analytics Group 607-592-3797 marianne@staupell.com<mailto:marianne@staupell.com> http://www.staupell.com From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Jayme Fancher Sent: Tuesday, September 10, 2019 4:15 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] Ammendments to Outdated Endowed Scholarship Agreements We have some old endowment agreements with exclusive or outdated restrictions that can impact their ability to be awarded out to students and programs. Donors for most of these types are now deceased. Who, if anyone, would be able to adjust things like restrictions or designations for outdated endowments? In that same vein, if an heir to the creator of the original endowment expresses interest in changing an endowment, do they have any stake in that process? -- JAYME FANCHER Development Data Specialist jaymefancher@pointloma.edu<mailto:jaymefancher@pointloma.edu> (619) 849-7031 [https://docs.google.com/uc?export=download&id=1kL4MsCWGH9xN5M8lKs_A5Ck0xVBC0Dil&revid=0B0nDqKz3rPidVkEwTzhPdjRuL0FYUHZjTCs2cmxRMEltUmRzPQ] Office of University Advancement 3900 Lomaland Drive | San Diego, CA 92102 pointloma.edu/give<https://urldefense.proofpoint.com/v2/url?u=http-3A__pointloma.edu_give&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=984RMR36hPmikF7s6oK6Uepf5oMP3Utjjovi7kvUZbE&m=VtSDsIDfUEdh8tjJrIqGvMN9HsfrnfKZ95voyrlBzuQ&s=YyjDiSnNvqoKs5-I9oMG-ARZptE0pzMcRhOOnXgYmPw&e=>

I am not an attorney, nor do I play one on TV. However, in my old position, we worked with a lot of funds that were up to 200 years old. It is true that some can never be used, but attornies can argue a *cy pres* motion, meaning that a new use is as close as possible to the now impossible original use. The original use must be indeed impossible, and the new one must be, well, as close as possible. But a court action is required. We did them with some regularity, but we had staff attornies. And you can't say that a fund to train a Puritan minister should now be used for building maintenance, but you might be able to argue that it could be awarded to students studyng for Protestant ministry, for instance. But unless you can convince a judge . . . On Tue, Sep 10, 2019 at 5:49 PM Marianne Pelletier <marianne@staupell.com> wrote: > Hi, Jayme, > > I have experienced this before. I agree with John that you’ll want to > involve an attorney. > > > > Next, your board will actually have to vote on it, but read the document > carefully. If the fund uses the word, “permanent” or anything else that > makes the contract rigid forever, then you may just have an endowment. A > donor’s heir doesn’t necessarily have the kind of control over an endowment > the way that he would over inherited personal property, because the > endowment is not inherited. > > > > You’re in a sticky spot! But you’re not alone: Harvard has a scholarship > made available to anyone who goes there to become a Puritan minister. The > fund is perpetual, and not a dollar of its earnings can be spent. > > > > --Marianne > > > > > > ________________________________________ > > Marianne M. Pelletier > > Staupell Analytics Group > > 607-592-3797 > > marianne@staupell.com > > http://www.staupell.com > > > > > > *From:* Advancement Services Discussion List < > FUNDSVCS@LISTSERV.FUNDSVCS.ORG> *On Behalf Of *Jayme Fancher > *Sent:* Tuesday, September 10, 2019 4:15 PM > *To:* FUNDSVCS@LISTSERV.FUNDSVCS.ORG > *Subject:* [FUNDSVCS] Ammendments to Outdated Endowed Scholarship > Agreements > > > > We have some old endowment agreements with exclusive or outdated > restrictions that can impact their ability to be awarded out to students > and programs. Donors for most of these types are now deceased. Who, if > anyone, would be able to adjust things like restrictions or designations > for outdated endowments? > > > > In that same vein, if an heir to the creator of the original endowment > expresses interest in changing an endowment, do they have any stake in that > process? > > > > -- > > *J**AYME** F* > *ANCHER *Development Data Specialist > jaymefancher@pointloma.edu > > (619) 849-7031 > > > > > > > > Office of University Advancement > > 3900 Lomaland Drive | San Diego, CA 92102 > > pointloma.edu/give > <https://urldefense.proofpoint.com/v2/url?u=http-3A__pointloma.edu_give&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=984RMR36hPmikF7s6oK6Uepf5oMP3Utjjovi7kvUZbE&m=VtSDsIDfUEdh8tjJrIqGvMN9HsfrnfKZ95voyrlBzuQ&s=YyjDiSnNvqoKs5-I9oMG-ARZptE0pzMcRhOOnXgYmPw&e=> > > > > >

Hi Jayme, In my role at UCF I work closely with our legal and accounting teams to unravel and modify funds just like these. I must echo Marianne in assuring you your not alone! In Florida we have statutes referenced as the Florida Uniform Prudent Management of Institutional Funds Act (FUPMIFA), statute 617.2104), that provide guidelines on modification of funds based on type, age, and amount of the fund. In addition, some of our peer institutions have implemented policies, based on the guidelines of FUPMIFA, to direct process and procedure. We are working on establishing these guidelines. For your state you may reference the Uniform Prudent Management of Institutional Funds Act (UPMIFA), which is what we utilized before becoming the FUPMIFA. Based on the balance of a fund (endowment and spendable together), age of the fund, and type of fund we are able to modify using the University Board or we have to work with the attorney general and/or circuit court. This is all dependent upon the donor not being available. In regards to deceased donors, we do not modify the funds based on living family members wishes unless the gift agreement gives them the ability to do so. Attached is a copy of the FUPMIFA statute. I understand your not in Florida, however it might give you a little assistance. If California does not have such a statute I would recommend researching the UPMIFA guidelines. I am happy to answer any questions you may have should you wish to chat in person. My contact information is below. Happy fund modifying. 😊 Best, Tambrea Tambrea Hurst ’14 Associate Director Donor Relations University of Central Florida Office: 407.882.1364 tambrea.hurst@ucf.edu<mailto:tambrea.hurst@ucf.edu> ucffoundation.org Florida has a very broad public records law (F.S. 119). This communication may be confidential and exempt from public records disclosure rules. For disclosure information: http://www.ucffoundation.org/file/disclosure.pdf<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.ucffoundation.org%2Ffile%2Fdisclosure.pdf&data=02%7C01%7CTambrea.Hurst%40ucf.edu%7C5febcfea552c4c97fca608d70467f127%7Cbb932f15ef3842ba91fcf3c59d5dd1f1%7C0%7C0%7C636982716798749289&sdata=FJSiyt7obch6w9VSXnquTUrnUJPG4yL0hwlZh3iFVLI%3D&reserved=0> From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Charles A. Wiley Gmail Sent: Wednesday, September 11, 2019 10:34 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Ammendments to Outdated Endowed Scholarship Agreements I am not an attorney, nor do I play one on TV. However, in my old position, we worked with a lot of funds that were up to 200 years old. It is true that some can never be used, but attornies can argue a cy pres motion, meaning that a new use is as close as possible to the now impossible original use. The original use must be indeed impossible, and the new one must be, well, as close as possible. But a court action is required. We did them with some regularity, but we had staff attornies. And you can't say that a fund to train a Puritan minister should now be used for building maintenance, but you might be able to argue that it could be awarded to students studyng for Protestant ministry, for instance. But unless you can convince a judge . . . On Tue, Sep 10, 2019 at 5:49 PM Marianne Pelletier <marianne@staupell.com<mailto:marianne@staupell.com>> wrote: Hi, Jayme, I have experienced this before. I agree with John that you’ll want to involve an attorney. Next, your board will actually have to vote on it, but read the document carefully. If the fund uses the word, “permanent” or anything else that makes the contract rigid forever, then you may just have an endowment. A donor’s heir doesn’t necessarily have the kind of control over an endowment the way that he would over inherited personal property, because the endowment is not inherited. You’re in a sticky spot! But you’re not alone: Harvard has a scholarship made available to anyone who goes there to become a Puritan minister. The fund is perpetual, and not a dollar of its earnings can be spent. --Marianne ________________________________________ Marianne M. Pelletier Staupell Analytics Group 607-592-3797 marianne@staupell.com<mailto:marianne@staupell.com> http://www.staupell.com<https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.staupell.com&data=02%7C01%7Ctambrea.hurst%40UCF.EDU%7Cd1405680291c4e89513308d736c52d47%7Cbb932f15ef3842ba91fcf3c59d5dd1f1%7C0%7C0%7C637038092810849571&sdata=4u8ZvcFxCBVBsJs0bbp20%2FiVe4z6oKhoX7TgZtdWCTw%3D&reserved=0> From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of Jayme Fancher Sent: Tuesday, September 10, 2019 4:15 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: [FUNDSVCS] Ammendments to Outdated Endowed Scholarship Agreements We have some old endowment agreements with exclusive or outdated restrictions that can impact their ability to be awarded out to students and programs. Donors for most of these types are now deceased. Who, if anyone, would be able to adjust things like restrictions or designations for outdated endowments? In that same vein, if an heir to the creator of the original endowment expresses interest in changing an endowment, do they have any stake in that process? -- JAYME FANCHER Development Data Specialist jaymefancher@pointloma.edu<mailto:jaymefancher@pointloma.edu> (619) 849-7031 [https://docs.google.com/uc?export=download&id=1kL4MsCWGH9xN5M8lKs_A5Ck0xVBC0Dil&revid=0B0nDqKz3rPidVkEwTzhPdjRuL0FYUHZjTCs2cmxRMEltUmRzPQ] Office of University Advancement 3900 Lomaland Drive | San Diego, CA 92102 pointloma.edu/give<https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Furldefense.proofpoint.com%2Fv2%2Furl%3Fu%3Dhttp-3A__pointloma.edu_give%26d%3DDwMFaQ%26c%3DeuGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM%26r%3D984RMR36hPmikF7s6oK6Uepf5oMP3Utjjovi7kvUZbE%26m%3DVtSDsIDfUEdh8tjJrIqGvMN9HsfrnfKZ95voyrlBzuQ%26s%3DYyjDiSnNvqoKs5-I9oMG-ARZptE0pzMcRhOOnXgYmPw%26e%3D&data=02%7C01%7Ctambrea.hurst%40UCF.EDU%7Cd1405680291c4e89513308d736c52d47%7Cbb932f15ef3842ba91fcf3c59d5dd1f1%7C0%7C0%7C637038092810859562&sdata=xYUx%2BqXUXg5B1vlRwlJXFnWRTsPxL%2BfFVVPTF1Aa46E%3D&reserved=0>