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Endowment Giving

Endowment Giving

Your legacy gift, when received, will be placed in San Francisco Opera’s endowment where it will help fulfill our vision of remaining the most exciting force in the opera world, now and in the future.

Endowment Funds

Our endowment consists of two funds. Both contain assets held long term and invested to generate income and capital appreciation. The New Century Fund is comprised of unrestricted gifts treated as endowment; the Restricted Fund includes gifts restricted by donors for time and / or purpose.

I. Name.

The name of this fund is the San Francisco Opera New Century Endowment Fund (the “New Century Fund”). The New Century Fund holds the assets of the San Francisco Opera Association (the “Opera”), which the Board of Directors of the Opera (the “Board”) has elected to be treated as endowed, and subject to the Uniform Prudent Management of Institutional Funds Act, as enacted in California and as amended from time to time (“UPMIFA”), and upon which the donor has not placed any restrictions. The San Francisco Restricted Endowment Fund shall be referred to in this Policy as the “Restricted Fund” and together with the New Century Fund collectively as the “Opera Endowment.”

II. Management.

Assets of the New Century Fund shall be owned and managed by the Opera in accordance with the terms of this Policy. The goal of the New Century Fund is to balance the current needs of the Opera and its constituencies with the obligation to preserve and increase the value of the New Century Fund for future generations. The Board has delegated the management of the assets of the New Century Fund to the Investment Committee.

III. Purpose.

The purpose of the New Century Fund is to further the charitable and educational purposes of the Opera by providing general support for its operating and program-related needs, as determined by the Board. A donor making a contribution to the New Century Fund does so subject to the terms of the Opera’s Gift Acceptance Policy, as amended from time to time, and this Policy, as amended from time to time.

IV. Annual Spending.

The Opera may appropriate from the New Century Fund for expenditure in any given fiscal year an amount consistent with the Coordination of Funds provision of this Policy (the “Annual Draw”).

V. Investment Guidelines.

Assets of the New Century Fund shall be invested identically to the investment of assets of the Opera’s Restricted Endowment Fund. Assets of the New Century Fund may be commingled for purposes of investment with other assets of the Opera.

VI. Costs.

The Opera’s costs to hold and invest the New Century Fund shall be charged to the New Century Fund (“Investment Charge”) subject to the Coordination of Funds provision of this Policy, and shall not diminish the Annual Draw. The Investment Charges shall be reviewed and approved by the Board annually.

VII. Emergency Appropriation.

If the Board determines that funds are urgently needed due to extraordinary circumstances, the Opera may appropriate, collectively from the Restricted Endowment Fund and the New Century Fund, for expenditure (a “Special Appropriation”) an amount not to exceed twenty-five percent (25%) of the Opera’s annual average approved budget during the latest three (3) fiscal years and consistent with the Coordination of Funds Provision, as set forth in the Bylaws of the Opera.

VIII. Coordination of Funds.

Any withdrawal made from the New Century Fund, either Annual Draw, Special Appropriation, borrowing, or Investment Charge, must be taken pari passu from the Restricted Endowment Fund and the New Century Fund in proportion to the respective aggregate value of each such Fund as of the date of the withdrawal; provided, however, that such pari passu allocation shall be made only to the extent that such allocation is permitted by donor restrictions applicable to assets held in the Restricted Endowment Fund.

IX. Loans.

The Opera may borrow from the New Century Fund subject to the Coordination of Funds provision of this Policy. The total amount borrowed at any one time from the Opera Endowment shall not exceed twenty percent (20%) of the Opera’s annual average budget during the latest three (3) fiscal years. Any loan repayment made to the Opera Endowment must be divided between the Restricted Fund and New Century Fund in proportion to the outstanding loan balance owed to each fund. The Opera shall contribute monthly to the New Century Fund an amount equal to the average outstanding balance in the preceding month multiplied by the value of the one year London Interbank Offered Rate (LIBOR), as last published in the preceding month, plus two percent (2.00%), all divided by twelve (12). The Carried Amount is the smallest average outstanding balance owed to the Opera Endowment in any month during a fiscal year. Concurrent with any Annual Draw, the Carried Amount shall be calculated for the preceding fiscal year. If the Carried Amount is not zero, a mandatory Special Appropriation equal to the Carried Amount shall immediately be taken, and this withdrawal will first be applied to pay back any outstanding loan balance with any remainder to be transferred to the general operating funds of the Opera.

X. Use as Collateral.

The Opera may encumber the assets of the New Century Fund as collateral only with the prior approval of the Executive Committee.

XI. Accounting.

Any New Century Fund assets that are held for a specific purpose shall be accounted for separately to facilitate their management.

XII. Amendment.

This Policy may be amended only by the Board.

I. Name.

The name of this fund is the San Francisco Opera Association Restricted Endowment Fund (the “Restricted Fund”). The Restricted Fund is an endowment fund as that term is defined in the Uniform Prudent Management of Institutional Funds Act, as enacted in California and as amended from time to time (“UPMIFA”). The San Francisco New Century Endowment Fund shall be referred to in this Policy as the “New Century Fund” and together with the Restricted Fund collectively as the “Opera Endowment.”

II. Management.

Assets of the Restricted Fund shall be owned and managed by the San Francisco Opera Association (the “Opera”) in accordance with the terms of this Policy. The goal of the Restricted Fund is to balance the current needs of the Opera and its constituencies with the obligation to preserve and grow the Restricted Fund for future generations. The Board of Directors of the Opera (the “Board”) has delegated the management of the assets of the Restricted Fund to the Investment Committee.

III. Purpose.

The purpose of the Restricted Fund is to further the charitable and educational purposes of the Opera by providing general support for its operating and program-related needs, as determined by the Board. A donor making a contribution to the Restricted Fund may restrict the use of the gift to specific uses subject to the terms of the Opera’s Gift Acceptance Policy as amended from time to time.

IV. Annual Spending.

The Opera may appropriate for expenditure once each fiscal year an amount from the Restricted Fund as the Board determines is prudent, and consistent with UPMIFA, any donor restrictions on assets held by the Restricted Fund, the intent that the Restricted Fund be an Endowment Fund, and the Coordination of Funds provision of this Policy (the “Annual Draw”).

V. Investment Guidelines.

Assets of the Restricted Fund shall be invested according to the standards set forth in UPMIFA and the Opera’s Investment Policy, as amended from time to time and approved by the Executive Committee. Assets of the Restricted Fund may be commingled for purposes of investment with other assets of the Opera.

VI. Costs.

The Opera’s costs to hold and invest the Restricted Fund (“Investment Charges”) shall be charged to the Restricted Fund, and shall not diminish the Annual Draw subject to the Coordination of Funds provision of this Policy. Investment Charges shall be reviewed and approved by the Board annually.

VII. Emergency Appropriation.

If the Board determines that funds are urgently needed due to extraordinary circumstances, the Opera may appropriate, collectively from the Restricted Fund and the New Century Fund, for expenditure (a “Special Appropriation”) an amount not to exceed twenty-five percent (25%) of the Opera’s annual average approved budget during the latest three (3) fiscal years and consistent with the Coordination of Funds Provision, as set forth in the Bylaws of the Opera; provided, however, that a Special Appropriation shall not be made from any funds in the Restricted Fund that are restricted to prohibit such Special Appropriation.

VIII. Coordination of Funds.

Any withdrawal made from the Restricted Fund, either Annual Draw, Special Appropriation, borrowing, or Investment Charge, must be taken pari passu from the Restricted Fund and the New Century Fund in proportion to the respective aggregate value of each such Fund as of the date of the withdrawal; provided, however, that such pari passu allocation shall be made only to the extent that such allocation is permitted by donor restrictions applicable to assets held in the Restricted Fund.

IX. Loans.

The Opera may borrow from the Restricted Fund subject to the Coordination of Funds provision of this Policy. The total amount borrowed at any one time from the Opera Endowment shall not exceed twenty percent (20%) of the Opera’s annual average budget during the latest three (3) fiscal years. Any loan repayment made to the Opera Endowment must be divided between the Restricted Fund and New Century Fund in proportion to the outstanding loan balance owed to each fund. The Opera shall contribute monthly to the Restricted Fund an amount equal to the average outstanding balance in the preceding month multiplied by the value of the one year London Interbank Offered Rate (LIBOR), as last published in the preceding month, plus two percent (2.00%), all divided by twelve (12). The Carried Amount is the smallest average outstanding balance owed to the Opera Endowment in any month during a fiscal year. Concurrent with any Annual Draw, the Carried Amount shall be calculated for the preceding fiscal year. If the Carried Amount is not zero, a mandatory Special Appropriation equal to the Carried Amount shall immediately be taken, and this withdrawal will first be applied to pay back any outstanding loan balance with any remainder to be transferred to the general operating funds of the Opera.

X. Accounting.

Any Restricted Fund assets that are held for a Specific Restricted Purpose shall be accounted for separately to facilitate their management.

XI. Use as Collateral.

The Opera may encumber the assets of the Restricted Fund as collateral only with the prior approval of the Executive Committee.

XII. Amendment.

This Policy may be amended only by the Board

San Francisco Opera Association, a not for profit organization organized under the laws of the State of California, encourages the solicitation and acceptance of gifts to San Francisco Opera Association (the “Association”) for purposes that will help the Association to further and fulfill its mission. The following policies and guidelines govern acceptance of gifts made to the Association or for the benefit of any of its programs. Any variances to this policy must be approved by the Gift Acceptance Committee (“GAC”), whose membership will be established by the President of the Association. The San Francisco Opera reserves the right to decline any gift if, in the view of the GAC, the gift is inappropriate.

I. Purpose of Policy and Associated Guidelines

The Association solicits current and deferred gifts from individuals, corporations, and foundations to secure the future growth and missions of the Association. This policy and associated guidelines govern the acceptance of gifts by the Association and provide guidance to prospective donors and their advisors when making gifts to the Association. The provisions of this policy apply to all gifts received by the Association for any of its programs or services.

II. Gifts: Presumed To Be Unrestricted

The Association will deem all gifts to be unrestricted unless the donor expressly restricts the gift for a purpose that is acceptable to the Association. All final decisions on the restrictive nature of a gift or the acceptance of a gift of real estate or other illiquid property will be made by the GAC. Endowment gifts shall be directed to San Francisco Opera’s “New Century Fund” unless the donor expressly restricts the gift to the Opera’s “Restricted Endowment Fund.” All gifts to the Restricted Endowment Fund are subject to review and acceptance by the GAC. The Association reserves the right to make variations in use of a gift, regardless of restriction, should circumstances arise in which the original intent is unable to be fulfilled. In the event that the use or restriction of a gift is changed, the donor or his/her representatives will be informed by the Association prior to the change.

III. Independent Advice

San Francisco Opera Association encourages all prospective donors to seek the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences. The Association will comply with the Model Standards of Practice for the Charitable Gift Planner promulgated by the Partnership for Philanthropic Planning.

IV. Miscellaneous Provisions

a. Securing appraisals and legal counsel for gifts to the Association: It will be the responsibility of the donor to secure an appraisal (where required) and independent legal counsel for all gifts made to the Association. This provision may be waived at the discretion of the GAC. b. Valuation of gifts for development purposes: The Association will record a gift received by the Association at its valuation for gift purposes on the date of gift. c. Responsibility for IRS filings upon sale of gift items: The Association is responsible for filing the IRS Form 8282 upon the sale or disposition of any asset sold within two years of receipt by the Association when the charitable deduction value of the item is more than $5,000. The Association will file this form within 125 days of the date of sale or disposition of the asset. d. Acknowledgment. Acknowledgment of all gifts made to the Association and compliance with the current IRS requirements in acknowledgment of such gifts will be the responsibility of the Association. (button) Email This If you are looking for a lawyer in your area, we can assist you by providing the names of experienced estate planning attorneys. Many may schedule a complimentary first meeting with you to discuss your needs.