This policy, having been previously approved by the CFNEM Board of Trustees, was reviewed and ratified by the CFNEM Board of Trustees on June 14, 2005.
I. As a donor to the Community Foundation for Northeast Michigan, you are entitled to:
- receive information about the foundation's administrative fees and its spending and investment policies, including (upon request) the names of the members of the investment committee;
- receive prompt gift acknowledgment and "thank you";
- be listed in foundation annual reports and other publications, unless you have requested anonymity;
- be added to the community foundation's mailing list;
- receive community foundation publications, including an annual report that contains full financial information, a description of its grantmaking program and information concerning its staff and board;
- be assured information about the size/nature of your gift will be held in confidence, and that it will be used for the purpose for which it was given.
II. As a donor who has established a separate fund, you have the right to:
- select the name of the fund, or have it remain anonymous;
- to receive fund status reports at least annually.
Unrestricted Funds
If the fund is established during your lifetime, you may request the community foundation to furnish you, periodically, with information concerning grants made from the fund. If the fund is created as part of your estate plan, your family members will beaccorded the same courtesy.
Field of Interest Funds/Scholarship Funds
The same rights apply to field of interest funds as those cited for Unrestricted Funds. In cases in which an advisory committee is created to recommend distributions from the fund, you may be allowed to designate the nature of that committee and you may sit on it yourself, always being mindful to ensure that there is no conflict of interest inherent in the composition of the committee.
Designated/Agency Endowment Fund
Both individuals and organizations who establish designated or agency endowments should be fully informed concerning the variance power of the community foundation. The language of the variance power is as follows:
Variance of Power
“Notwithstanding any provisions in the Bylaws or in any instrument of transfer, creating or adding to a fund of the Corporation, the Community Foundation for Northeast Michigan Board shall have the power to modify any restriction or condition on the distribution of funds for any specified charitable purpose or purposes or to a specified charitable organization or organizations if in the sole judgment of the board (without the necessity of the approval of any participating trustee, custodian, or agent), such restriction or condition becomes, in effect, unnecessary, incapable of fulfillment, illegal, or inconsistent with the charitable needs of the community or area served.”
Donor Advised Funds
- You have the right to recommend grants from the fund;
- You have the right to have a clear understanding of whether or not you will be able to recommend distributions of income only or income and principal. This issue should be resolved and described in the fund agreement when the fund is created;
- You have the right to resolve the issue of the right of a spouse or succeeding generations to advise distributions from your fund. This should be determined at the time the fund is created;
- You have the right to understand whether or not the Community Foundation will allow you to recommend distributions that benefit eligible recipients outside the normal geographic area served by the foundation. This should be determined at the time the fund is created;
- You have the right to be apprised, in writing, as to the limitations of the uses of a donor advised fund as follows:
a. there can be no benefit accruing to you, directly or indirectly, as a result of a distribution;
b. the uses of the fund must be charitable;
c. you cannot suggest a distribution from a donor advised fund to fulfill financial pledges;
d. all the distributions you suggest must be approved by the board of the Community Foundation for Northeast Michigan.
