Policies

Perpetual Scholarships | Cash Donations | Non-cash Gifts

TUMWATER EDUCATION FOUNDATION

POLICY AND PROCEDURE #1
ESTABLISHING A PERPETUAL SCHOLARSHIP

POLICY

  • A perpetual fund will be established and the annual earnings of the fund will be available for scholarship purposes.
  • The fund will be under the ownership and management of the Tumwater Education Foundation (TEF) to be used exclusively for generating scholarships to be awarded as designated by the donor establishing the fund.
  • The original fund principal amount of at least five thousand dollars ($5000.00) is not to be diminished. This is necessary in order to provide an earning base to assure a perpetual award.
  • One five hundred dollar ($500.00) scholarship will be awarded for the first year if these funds are provided by the donor. Otherwise, the first scholarship will be awarded one school year after establishment to allow the fund to draw interest for one year.
  • If the fund increases over time, TEF may opt to either increase the award amount or grant an additional scholarship, providing the original fund principal is not diminished.
  • The scholarship will be limited to a tuition scholarship and payment will be made directly to the college or university chosen by the recipient.

FINANCIAL MANAGEMENT PROCEDURE

  • The fund will be maintained at the same bank that maintains the Tumwater Education Foundation account.
  • Scholarship money was invested at the bank in a manner that assures the best safe return.
  • If the fund is placed in an account with limited dates of deposit, such as a certificate of deposit, the TEF savings account will act as a “holding account” for any contributions which may accumulate before deposits to the basic fund can be made.
  • The bank will provide the Tumwater Education Foundation with regular reports on the account status, will issue checks for scholarship withdrawals upon instruction, and will reinvest funds at the appropriate time as directed by the TEF.

SELECTION PROCESS
  • Applications for scholarship will be solicited by the TEF from graduating senior students of the Tumwater School District under the guidelines established by the donor and approved by the board.
  • Applications will be requested in writing upon forms developed by the TEF and accompanied by any supporting information deemed necessary by the Foundation.
  • Scholarship criteria will be established by the donor in cooperation with the TEF Board of Directors.

DONORS ROLE

  • The donor’s primary objective is to see that the scholarship fund is established and functioning.
  • Beyond #1. above, the donor’s only ongoing involvement is to receive an annual report of the fund status along with an indication of intentions on the part of the TEF as to how many scholarships and what amounts are to be awarded. This report will be due in the month of May.
  • The donor will in no way be involved in the selection of the scholarship recipient(s).
  • The donor will have no further claim to the funds.
  • For the first award, the donor will submit a mutually agreed amount directly to the foundation. This money is separate and apart from the established perpetual fund. This will allow the perpetual scholarship to generate at least a full year’s earnings prior to the first award.
  • The TEF will require all recipients to write a thank you to the donor’s family before any award is dispersed.

TUMWATER EDUCATION FOUNDATION

POLICY AND PROCEDURE #2
CASH DONATIONS

POLICY

Donations may be applied towards the Annual Scholarship Program, the Endowment Fund, the Technology Fund or the General Education Project Fund

  • Donations to the Annual Scholarship Program will be awarded to a member(s) of the graduating class following the date of donation.
  • Donations to the Endowment Fund will be added to the established account for the purpose of providing perpetual scholarship opportunities to graduating seniors of the District.
  • Donations to the Technology Fund will be available to all schools within the District for technological support.
  • Donations to the General Education Project Fund will be available to all schools within the District for general educational purposes.

All donors who contribute over $100 will receive recognition at the annual Foundation fundraising event.

DONATION PROCEDURES

  • Donations may be made by cash, check or payroll deduction if agreement has been made between TEF and the donor’s place of employment.
  • If donations are made by payroll deduction they may be a one time deduction or on a monthly basis as indicated by the donor.
  • Donor’s may designate their funds to be applied to the Annual Scholarship Program, the Endowment Fund, the Technology Fund, or the General Education Project Fund.

APPLICATION FOR FUNDS PROCEDURES
  • Students may apply for Foundation Scholarships by completing a Scholarship Notebook following the guidelines developed by the foundation. These guidelines may be amended by a majority vote of the board. (See attached guidelines)
  • To be eligible for a TEF scholarship a student must not only complete a scholarship notebook but assist in the annual fundraising event. However, this does not guarantee a scholarship.
  • The Scholarship Fund Committee may make recommendations for the yearly scholarship criteria to the Board but the Board retains the right to establish the final criteria.
  • Scholarship recipients will be announced at the schools Annual Awards Night.
  • Schools within the District may apply in writing for funds in the Technology or General Education Project Fund.

DISTRIBUTION OF SCHOLARSHIP FUNDS PROCEDURES

  • Instructions for disbursement of funds will be provided to each recipient at the Awards Night Program.
  • Before funds are disbursed, a thank you note must be received by the recipient.
  • Verification of enrollment must be received by the Foundation prior to funds being released.
  • Funds will not be disbursed prior to September 1 of the year of award.
  • Funds will be sent to the college in the name of the student.
  • Funds may be used for tuition, books, housing, or other fees.
  • If request for disbursement of funds is not received within one year of its award, the scholarship is withdrawn automatically unless an application pursuant to subparagraph 8 is submitted by the reicipient.
  • Recipient may request an extension on the use of the initial award by submitting a written request to the board. Upon approval of the board up to one additional year may be granted for disbursement of funds.

TUMWATER EDUCATION FOUNDATION

POLICY AND PROCEDURE #3
NON-CASH GIFT DONATION

POLICY

PROCEDURE

  • When a donor contacts the Foundation about a potential contribution of equipment, Foundation Board members will evaluate the gift according to the policy for non-cash donations.
  • If the proposed gift does not meet the necessary criteria, the gift will be declined. When name and address information is available, a “thanks, but no thanks” letter will be mailed to the prospective donor, outlining the gift acceptance criteria and expressing appreciation for the donor’s interest in and support of TEF. Copies of these letters will be distributed to the TEF president and TSD liaison.
  • If the proposed gift meets the criteria, the TSD liaison will contact the appropriate school or department to further determine the usefulness of the gift. The Board, in collaboration with the TSD liaison, will make the final decision on whether or not to accept the gift.
  • Either the Foundation or the TSD liaison will distribute a Tumwater Education Foundation Report of Non-Cash Gift form to the prospective donor. The donor must complete the first page of the form, including assigning a value to the donation. The item description should include make, model and serial number, and any other license, registration or other identifying numbers.
  • The Foundation may be required to file an information return with the Internal Revenue Service if the donated item is valued over $5,000 and it is sold, exchanged or otherwise disposed of within two years of its receipt. The purpose of this requirement is to facilitate compliance by donors. For example, a sale of donated property shortly after its contribution for substantially less than the amount claimed as a deduction by the donor may indicate that the donor overvalued the property.
    • For this reason, values placed on contributions and appraisals to determine values for tax purposes are the donor’s responsibility. Neither TEF Board members nor TSD personnel will establish and/or quote a dollar value for the contribution to the donor.
    • However, TSD staff may be called upon by the Foundation for assistance in establishing a fair market value for the item for inventory purposes.

Upon receipt of the Report of Non-Cash Gift form from the donor, the Foundation president will determine the following, with assistance from the TSD Liaison:

  1. If the item is of instructional value and the item will eventually be stripped of parts and “cannibalized,” the item will be transferred from the Foundation to the District at the next regularly scheduled Foundation Board meeting. In this way, the item can be surplused when depleted according to District and State requirements.
  2. If the item is determined to be of non-instructional (administrative) use and is not intended to be eventually refurbished and sold, the item will be transferred from the Foundation to the District at the next regularly scheduled Foundation Board meeting. In this way, the item can be surplused when depleted according to District and State requirements.
  3. If the item is of instructional value and the item will be refurbished as part of students’ hands-on learning with intent for sale, the item will be retained in the Foundation inventory until it is sold.
  4. If the item is in the form of an appreciating asset and the donor has specified that the donation be receipted to the Foundation, the item will be held by the Foundation until such time as its Finance Committee determines disposition according to the Foundation’s investment policies and procedures.
  5. If the item is in the form of an appreciating asset and the donor has specified that the donation be receipted to the District, the item will be transferred to the District at the next regularly scheduled Board meeting.

For items falling under categories A, B, or C under item #8 above:

  1. The Foundation Secretary will forward the Report of Non-Cash Gift form to the TSD Liaison who will facilitate completion of the “District Section” on page 2 of the Report of Non-cash Gift form, and sign as the District Representative.
  2. The form is forwarded by the TSD liaison to the Foundation president for approval and signature.
  3. The completed forms are then forwarded to the Foundation treasurer for processing.
  • The Foundation treasurer completes the “Foundation Section” on page 2 of the Report of Non-Cash Gift form, obtains appropriate signatures and mails the donor a copy of the form, along with a thank you letter from the Foundation president, and Internal Revenue Service (IRS) information pamphlets regarding non-cash contributions.
  • If donations are procured for the annual scholarship fundraising event, the responsibilities described under #8 may be designated to the appropriate Scholarship Fund Committee member.
  • If the donation is licensed or titled property which is retained in the Foundation inventory, the applicable titles and licenses will be held by the Foundation (see Procedures for Non-Cash Gifts of Vehicles and Vessels,” below).
  • For any items transferred to the District, the Foundation will forward the original relevant licenses, titles, registration forms, etc., to the District Transportation and Surplus Property Specialist. The Foundation will keep a copy of such information on file in the treasurer’s records for tracking purposes.
  • Non-cash gifts receipted to the Foundation inventory may be sold at any time at the discretion of the Foundation Board of Directors.
  • The Foundation will update the inventory of non-cash assets annually. The inventory will indicate the date, value and description of the original gift, any adjusted (general ledger) value, and current/final disposition of the item.

The Foundation will be treated as a District job account customer for service and repair of items which are refurbished as part of students’ hands-on learning.

  1. Proceeds from the sale of these items will be distributed according to the District’s policy, less 25 percent (which will be deposited to the Foundation’s general fund).
  2. The Foundation’s general fund will be reimbursed from the sale proceeds for any job account expenses incurred to make the item sellable.
  3. The Foundation may retain a portion of the sale proceeds to cover any additional costs incurred (advertising, taxes, fees, etc.).

In instances when the donor specifies that a non-cash gift is receipted directly to the District, the following procedure will apply:

  1. Appropriate District forms for reporting of Non-Cash gifts will be processed by the District.
  2. Thank you letters will be the responsibility of the District.
  3. Any non-cash gifts receipted to the District will be included in the District inventory, and thus becomes part of the State inventory. Such gifts may be sold only in accordance with State requirements. District administration will determine the disposition of any proceeds from such sales, unless otherwise stipulated by the donor.
  4. All non-cash gifts receipted to the District shall be accounted for in a manner consistent with State statutes and Office of Financial Management (OFM) requirements.
  5. If the gift is declined, the Foundation will prepare a “thanks but no thanks” letter. The letter will outline the gift acceptance criteria and express appreciation for the donor’s interest in and support of the Foundation and the District.

All non-cash gifts received by the Foundation will be acknowledged in its Annual Report to Donors, presented to the Foundation Board of Directors annually.

PROCEDURE FOR NON-CASH GIFTS OF VEHICLES AND VESSELS
  • In the case of motor vehicles, the Foundation will use N.A.A.A. retail value or the equivalent as an item’s assigned value in its inventory of non-cash assets.
  • In the case of motor vehicles, campers, trailers, marine vessels, etc., a current, Washington state title and registration must accompany the Report of Non-Cash Gift. The title must be signed by the current registered owner, with the mileage recorded and “gift” indicated as sales price. (Exceptions may be made when the value of the gift far exceeds any costs necessary to transfer title.)
  • In the case of vehicles 1987 or newer, the donor must complete and sign an Odometer Disclosure/Title Extension Statement. This is required in order for the Foundation or the District to later dispose of the vehicle either through surplus or sale. (This form can be obtained from any Washington State Department of Licensing office or agent.)
  • According to the Washington State Department of Licensing, neither the District nor the Foundation are required to transfer title to vehicles which will not be used on the road. However, the donor mush complete the Vehicle Seller’s Report of Sale portion of the title and mail it to the Department of Licensing within the prescribed time period (15 days).
  • If the Foundation determines that the best method of sale is through auction, the Foundation must transfer title of the vehicle from the donor to the Foundation in order to sell the vehicle or vessel through an auctioneer. Title transfers may take up to six weeks to process by the Department of Licensing. Any fees incurred by the Foundation will be reimbursed from proceeds of the sale.

 

TUMWATER EDUCATION FOUNDATION
REPORT OF NON-CASH GIFT

Date: _____________________________

DONOR SECTION: If the donor is a business, the company representative is:

Name: ___________________________ Name: ______________________________

Address: ___________________________

___________________________

Phone: ___________________________

Property Transferred: The undersigned, on behalf of the Donor, does hereby assign, transfer, and set over unto TEF, all of the Donor’s rights, title and interest in and to the following described property:

______________________________________________________________________________________________________________________________________________________

Estimated Value $_______________ (must be completed by donor)

Please check _____ Donor estimate _____ 3rd party appraisal _____ Fair Market value

Purpose of Gift: The property hereby transferred is to be used and/or applied by the Foundation for the purpose indicated (please check desired purpose):

[ ] Unrestricted Foundation use: For the general use of the foundation, with no restriction as to the application of such property or the period of retention thereof and with full authority to sell such and apply the proceeds from such sale for the general purposes of the Foundation.

[ ] General Use of a Specific Program/Department: For the general use of the _______________________________ Program/Department of the Tumwater School District.

Certification: By my signature below, I certify that the property transferred is free from any liens, encumbrances and/or defects in title.

SIGNATURE: _________________________________________________________________

PRINTED NAME AND TITLE: ___________________________________________________

Dated this ______ day of ________________________, 20_______.

DISTRICT SECTION:

Specific School and/or Department to receive donation: ______________________________

___________________________________________________________________________

TSD District representative receiving donation and title: ______________________________________________________________________________

Intended use and location of donation: ______________________________________________________________________________

______________________________________________________________________________

I have seen the item(s) donated or can otherwise verify the accuracy of the donation description in the Donor Section of the report, and I certify the applicability of this donation for the purpose for which it is being give to the District, and that it will not burden either the District or the Foundation with unacceptable liabilities.

____________________________________ _____________________

Signature of District representative Date signed

Please return completed form to: Tumwater Education Foundation

PO Box 4232

Tumwater, WA 98501

 

FOUNDATION SECTION:

Donor Value: __________________

Associated Costs: __________________

Adjusted Value: __________________

The Tumwater Education Foundation:

_____ Acknowledges receipt of potential donation form: “Report on Non-Cash Gift”.

_____ Approves acceptance of donation.

_____ Declines acceptance of donation.

_____ Thank you receipt/letter sent to donor.

_____ IRS information enclosed with thank you letter.

_____ Item(s) placed on Foundation Inventory List.

___________________________________ __________________

Foundation President Date signed

___________________________________ __________________

Foundation Secretary/Treasurer Date signed

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