Stony Brook Foundation Fund Agreement Process & Approval

Fund Name:

Development Officer:

A. Drafting Process

1. Select template: Current Use/Endowed; Scholarship; MOU; Amendment2. Do not alter boilerplate/existing template language (or, if needed, use tracked changes) 3. Input specifics from proposal/donor/department4. If creating an amendement, attach all previous agreements/amendements5. Any University commitment required for the gift should be discussed with appropiate SBU area(s)

B. Approval Process APPROVAL DATE:

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1. Secure your dean’s and manager’s approval2. 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 date2. Once received with donor signature, route the two copies of the agreement for all internal signatures

with a short-form account application3. Submit one finalized original and the account application to SBF (donor keeps other original)

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[FUND NAME- ENDOWMENT] MEMORANDUM OF USE**For Scholarships or Chairs/Professorships, please see relevant endowment template for additional language needed.**

I. ESTABLISHMENT

This Memorandum of Use (“MOU”) is by and between Stony Brook University (“Stony Brook”) and the Stony Brook Foundation, Inc. (“SBF” or the “Foundation”), to describe the intended use of gifts from the [list funding source] held in the [Fund Name]. 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 Stony Brook 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/chair/research the endowment will support and may be consistent with language in the proposal (if applicable). If for Bequests, use following language, “Per the terms of the attached insert title of will, trust or other document established by the Donor (the “Will/Trust/Other”) dated insert document’s date, the bequest is as follows: “quote language of will/trust/other document exactly…” The Fund’s purpose as set forth above may not be changed without judicial approval.

For University Solicited pure endowments with multiple donors, the advancement officer in consultation with the relevant University officials should give details of the fund, including background, sources of funds, total gifts to the fund or principal market value of the fund to date; description of solicitation process and materials to support the establishment of a pure endowment. Solicitation materials must clearly specify "pure or perpetual endowment".

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.

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 in all 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

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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. FUNDING

The Fund is/shall be initially established with following gifts to the Stony Brook Foundation:

List below only the applicable funding vehicles. Attach a copy of the gift transmittal form and/or pledge form and all pertinent supporting documentation.

A. An outright cash gift of $_____.

B. A pledge in the amount of $________ to be fulfilled according to the terms in the attached pledge form.

C. A gift of securities or real property. Describe stock/attach legal description and qualified appraisal of property.

D. A gift of the remainder interest of a charitable remainder trust/pooled income fund gift/charitable annuity executed on ______ .

E. A charitable bequest from the Donor’s estate. Include amount of expected distribution to be sure it at least meets current endowment minimums.

F. Any other gifts or bequests with appraisals, as appropriate, that the Donors or other persons may designate for this purpose.

G. Any other gifts or bequests with appraisals, as appropriate, that the Donors or other persons may designate for this purpose.

If fund is established with a partial gift that does not initially meet the endowment threshold include the following language:

Because the initial gift to the endowment fund does not meet the required dollar minimum, the fund will be established as a current use account until it reaches the minimum required threshold for an endowment. At that time, the funds will be transferred to a permanently endowed account. If the required dollar minimum to establish the endowment cannot be met between gifts, and pledges within a five year period, the Fund will be used as current use fund to support the purpose of this account.

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

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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 MOU is not a legally binding document. Its purpose is to clarify the use of the gifts held in this Fund. This MOU may be modified by mutual written consent of the Foundation and the appropriate University officials as long as the use of the Fund adheres as closely as possible to the original intent for which the gifts to this Fund were originally solicited.

In the event that the purpose for which this Fund was established can no longer be satisfied due to changed circumstances, the Foundation, in consultation with the University may designate a related alternative purpose for the Fund that reflects as closely as possible the original purpose of the gift.

FOR STONY BROOK FOUNDATION, INC.: FOR STONY BROOK UNIVERSITY:

______________________________Dexter Bailey, Jr. DateExecutive Director

______________________________Area VP/Provost Name DateTitle

______________________________Area Dean Name Date

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Title

______________________________Designee of the Fund (if not the Area Dean) NameTitle Date

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