Our Endowment Fund Policy
It is the policy of Child Crisis Arizona to establish and accept gifts to the Child Crisis Arizona Endowment Fund (CCAEF) that are permanently restricted for the benefit of one or more programs or purposes within the scope of the Organization’s mission, subject to its gift acceptance policies. It is also the policy of the Organization to account for the Child Crisis Arizona Endowment Fund in accordance with any and all explicitly communicated donor-imposed stipulations that have been accepted by the Organization.
Contributions to the Child Crisis Arizona Endowment Fund shall comprise a permanently-restricted fund. The original principal amount of any donor-designated contribution shall be committed to the endowment fund irrevocably and the original principal balance of contributions to the endowment fund shall not be distributed for any reason. The aggregate of contributions to the endowment fund shall be referred to in this document as the “original contributions”.
The Child Crisis Arizona Foundation shall be responsible for holding and managing the original contributions in accordance with its mission statement and investment policies and guidelines, as adopted. The Child Crisis Arizona Foundation shall be responsible for distributing any income and gain produced by the CCAEF to Child Crisis Arizona in accordance with the policies herein, with the purpose of benefiting CCA and furthering its mission and purposes.
If you would like to learn more about giving to the Endowment Fund, please contact us.
The Child Crisis Arizona Board of Directors delegates supervisory authority over the CCAEF to the Child Crisis Arizona Foundation Board of Directors. The Foundation is responsible for regularly reporting of the CCAEF to the CCA Board of Directors and CCA Officers. In carrying out its responsibilities, the Foundation will act in accordance with the policies and all applicable laws and regulations.
The Child Crisis Arizona Board of Directors reserves to itself the exclusive right to revise the policies. The Child Crisis Arizona Foundation Board of Directors is authorized to retain one or more investment managers to assume the management of funds and assets comprising the Child Crisis Arizona Endowment Fund, if it so chooses.
The primary investment objective of the Child Crisis Arizona Endowment Fund is to produce a rate of total return which will maximize support for Child Crisis Arizona to the extent that is consistent with the following: prudent management of investments, preservation of principal, and potential for long-term asset growth.
The Child Crisis Arizona Endowment Fund’s investments will be managed by the Child Crisis Arizona Foundation consistent with the investment policies established by the Child Crisis Arizona Foundation Board of Directors.
The income and/or gain earned by the Child Crisis Arizona Endowment Fund is considered unrestricted revenue and may be distributed to Child Crisis Arizona as general support revenue for its programs. On at least an annual basis, the Finance Committee of the Child Crisis Arizona Board of Directors shall recommend to the Child Crisis Arizona Board an amount to be transferred from the unrestricted income and/or the gain of the CCAEF to Child Crisis Arizona.
At no time shall the permanently-restricted original contributions to the CCAEF be distributed. As a matter of prudence, no distribution of income and/or gain shall occur until the total market value of the CCAEF reaches $2 million. Also, an amount no greater than 7% of the total market value of the CCAEF may be distributed in any given calendar year except as provided by the Excess Distribution Policy. The target distribution will be 5% per year.
The contribution percentage that may be distributed shall be applied to the 12-month average of the Child Crisis Arizona Endowment Fund as measured on September 30th of each calendar year (measurement date). The contribution shall be distributed to Child Crisis Arizona in the calendar year following the measurement date upon request.
If the Fund is underwater, meaning that the market value of the fund falls below the amount of the original contributions, any spending from the Fund requires specific approval by the Board of Directors of Child Crisis Arizona. Spending in an underwater situation are still subject to spending and excess distribution policies set herein.
Excess Distribution Policy
Distributions of the earnings of the Child Crisis Arizona Endowment Fund in excess of the Spending Policy above may be made to Child Crisis Arizona in any year as provided by the Child Crisis Arizona Board of Directors, provided one of the following conditions is met:
- The distribution is for the purpose of enabling Child Crisis Arizona to acquire or renovate a capital asset.
- Child Crisis Arizona is faced with unexpected financial needs that are not likely to recur, and the distribution will permit CCA to meet those needs.
- Child Crisis Arizona is afforded a unique strategic opportunity that is beyond what the normal operating budget can absorb.
- The size of the Board-Directed Endowment becomes too large in comparison to published industry standards.
Requests for distributions under the Excess Distribution Policy must be approved by a two-thirds (2/3rds) majority vote of the Child Crisis Arizona Board of Directors.
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Sue Gifford, CFRE
Director of Individual & Legacy Gifts
Child Crisis Arizona