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PROCEDURES FOR OPERATION OF
DONOR-ADVISED FUNDS

Authorized 10-19-76
Adopted 11-14-78
Amended 01-30-90
Amended 06-29-93
Amended 05-20-99
Amended 12-18-03
Amended 10-12-05

AMENDED PROCEDURES FOR OPERATION OF
DONOR-ADVISED FUNDS

Section 1.  ESTABLISHMENT AND PURPOSE

1.1 Stark Community Foundation (hereinafter "Foundation") has authorized the establishment of Advised Funds by Resolution of the Board of Trustees adopted October 19, 1976.  Said Resolution authorizes the adoption of these procedures for the establishment and administration of Advised Funds.  These procedures may be amended from time to time, when deemed necessary or desirable by the Distribution Committee.

1.2  Establishment of Funds.  Advised Funds may be established by the donation or transfer by any person (hereinafter "Donor") to, and acceptance by, the Foundation of money or property, whether by contribution, gift, bequest, or devise or by transfer from a charitable or other organization (hereinafter "contribution"), to further or carry out the purposes of the Foundation (which purposes are hereinafter referred to as "charitable" and shall encompass only charitable purposes as defined in section 170(c)(1) or (2)(B) of the Internal Revenue Code).  Advised Funds are and shall be administered as part of the endowment funds of the Foundation.  However, the procedures set forth herein are provided in recognition of a particular purpose of Advised Funds, which is to develop support of, and participation and involvement in, the philanthropic interests and activities of the Foundation by a wide range of living donors.

1.3  Nature and Terms of Funds.  Each Advised Fund shall be held by one of the corporate trustees under the Resolution and Declaration of Trust Creating the Foundation, or by Stark Community Foundation, Inc., as a component part of the Foundation.  The Distribution Committee of the Foundation or the Board of Trustees of Stark Community Foundation, Inc., as the case may be, (both of which hereinafter shall be included within the term "Distribution Committee"), shall have the ultimate authority and control of all assets in the Fund, and the income derived therefrom, for the charitable purposes of the Foundation. Unless otherwise defined in the agreement establishing the Advised Fund, "income" has the meaning defined in Stark Community Foundation Charitable Payout Policy. Each Fund may be recorded on the books and records of the Foundation as an identifiable or separate fund and may be given a name or other appropriate designation as requested by the Donor and approved by the President of the Foundation or the President's designee.

Section 2.  ACCEPTANCE OF FUNDS

2.1  Authorization.  Any of the corporate trustees or Stark Community Foundation, Inc. with the approval of the President of the Foundation (or such additional officers or employees of the Foundation as the Distribution Committee may from time to time authorize) shall have the authority to accept, on behalf of the Foundation, contributions to establish or add to an Advised Fund.  A Donor may not impose any material restriction or condition that prevents the Foundation from freely and effectively employing the contributed assets, or the income derived therefrom, in furtherance of a charitable purpose of the Foundation.

2.2 Value.  The minimum amount required for a Donor Advised Fund established after January 1, 2004 shall be $25,000.

Section 3.  DISTRIBUTIONS FROM THE FUND

3.1  In General.  The Distribution Committee has the right to direct all distributions of income or principal of Advised Funds.  The donor of an Advised Fund (or his designee, as permitted in Section 3.2 below) may, after the contribution of money or property to a Fund, recommend to the Foundation the making of distributions from the Fund which are consistent with the specific charitable objectives of the Foundation.  The Foundation shall consider and evaluate all such recommendations, but such recommendations will be solely advisory and the Foundation is not bound by such recommendations.

3.2  Donors and Their Designees Accorded the Privilege of Making Recommendations.  The privilege of making recommendations (as described in Section 3.1 above) shall be extended to Donors and their designees, subject to the following limitations:

(a)      Ordinarily if any individual Donor establishes an Advised Fund, the privilege of making recommendations is limited to the Donor and his or her spouse, and, unless otherwise specified in the instrument establishing the Fund, recommendations may be made by them separately or jointly.  Such privilege of a Donor or the spouse will be continuous with the existence of the Fund unless either terminated by (i) death (ii) written notice to the Foundation of resignation or release or (iii) a finding by the Foundation that the person involved is not available or is incompetent to exercise the privilege.

(b)      An individual Donor may designate in the instrument establishing a Fund a person or persons other than or in addition to himself and his or her spouse to exercise the privilege to make recommendations, but in such case the privilege will exist only during the lifetime of such Donor or the spouse, unless earlier terminated as described in (a) above.  However the instrument establishing a Fund may designate successor advisors following the death of either the Donor or the Donor and the spouse in one of the following categories:

  (i)       Adult children or grandchildren of a Donor may be appointed by the Donor to have the privilege to make recommendations concerning distributions from such Fund after the termination of the privilege of the Donor and the spouse.  The privilege of making such recommendations is limited to those children or grandchildren appointed by the Donor.  Such designation of a successor or successors to the original Donor or the spouse will be recognized in the discretion of the Foundation if it furthers continued family participation, support and involvement by such successors.  The privilege of making recommendations will be final and binding on all parties concerned.

  (ii)      Alternatively, relatives of the Donor who are not direct descendants, persons who are friends of the Donor, or an Advisory Committee (and successors to members of the Advisory Committee) may be appointed by the Donor to have the privilege to make recommendations concerning distributions from such Fund after the termination of the privilege of the Donor and the spouse.  Such Advisors shall continue to have the privilege of making recommendations for a period of up to15 years after the death of the Donor, unless Advisors choose to surrender such privilege or for any other reason cease to function.  The decision of the Distribution Committee that an Advisor has ceased to function shall be final and binding on all parties concerned.

In order to permit familiarity with conditions prevailing in Stark County, successor advisors must either reside in the Stark County community or maintain active contact with the Foundation if not residents.  When persons in addition to the original Donor or his or her spouse may make recommendations, the Foundation may require those persons to designate one person to act for them in submitting recommendations to the Foundation.

(c)      A Donor entity that is not a person that establishes an Advised Fund will have the privilege of making recommendations for a period not to exceed 15 years from the date of the establishment of the Fund.  The privilege to make recommendations may be extended beyond the 15-year limitation if substantial additional contributions (see paragraph 3.2(e)) are made and the Donor maintains a continuing charitable involvement with the Foundation.  A donor shall be limited to establishing only one Advised Fund within such 15-year period.  Such Donor, or those acting on its behalf, shall designate one person (and may designate his or her successors) to submit the recommendations of the Donor to the Foundation.

(d)      The term "Donor" includes a single Donor or to plural Donors to a given Fund.  Hereinafter, the term "Donor" will also include and shall apply to successor Donors having the privilege of making recommendations as provided above.

(e)      The phrase "substantial additional contributions" as used in these Procedures means the greater of (1) $25,000 or (2) ten percent (10%) of the fair market value of the principal of the Fund, at the time additional contributions are made.

3.3  Charitable Needs for Which Distributions may be made.  The Distribution Committee with assistance of the President, shall enumerate specific charitable needs to which distributions from Advised Funds may be made and shall from time to time determine the charitable needs most deserving of support from such funds.  There is attached, as Exhibit A, a list of such specific charitable needs enumerated at the time of approval of these procedures (hereinafter "List of Charitable Needs").  The Distribution Committee is authorized to modify the list from time to time.  It is the policy of the Foundation to encourage recommendations from all sources, including from persons other than Donors, for inclusion of qualified charitable organizations and/or programs, projects and activities of qualified organizations in the list of specific charitable needs.

3.4  Limitations.  The following limitations apply to all distributions from Advised Funds:

(a)      The minimum amount of any one distribution from an Advised Fund shall be $100, although the Distribution Committee may, from time to time, set a higher limitation.

(b)      The Foundation, as a public charity, will not make any distribution from an Advised Fund except as a distribution from the Foundation for its charitable purposes, and no such distribution may be used to discharge or satisfy a legally enforceable pledge or obligation of any person, including the Donor of an Advised Fund.

(c)      A Donor of an Advised Fund shall have the privilege of making recommendations as to distributions out of the corpus of an Advised Fund.  However, it is the general policy of the Foundation that a minimum of $25,000 of the Advised Funds shall remain as a permanent endowment of the Foundation.

(d)      The successor to the Donor of an Advised Fund shall have the privilege of making recommendations only to the distribution of the income of the Advised Fund.

(e)      Ninety-days written notice may be required to process a grant of $25,000 or more.

3.5    Procedure.

3.51  Recommendations by Donors.  Recommendations by a Donor with respect to distributions from an Advised Fund shall be made in writing, and addressed to the Foundation.  Donors are encouraged to make recommendations with respect to charitable needs enumerated by the Foundation as being most deserving for distributions by the Foundation.  Donors shall be furnished the List of Charitable Needs described in Section 3.3.  However, a Donor may make a recommendation with respect to a charitable organization not coming within the categories specified on the List of Charitable Needs, in which case the Foundation shall make an investigation as described in Section 3.52.

3.52  Staff Investigation.,  With respect to each recommendation by a Donor, the Foundation will make an investigation to determine whether the recommendation is consistent with specific charitable needs deserving of support by the Foundation.  The degree of formality employed by the Foundation in making an evaluation will depend upon the nature and category of the grantee organization and information obtained by or already available to the Foundation with respect to the grantee and the purposes of the grant.  If the Foundation determines that the recommendation is not consistent with the specific charitable needs of the Foundation, the Donor shall be advised that the recommendation does not meet the standards for distributions.

3.53  Distribution Committee Action.  The Distribution Committee shall act upon all recommendations by Donors and shall allocate funds from Advised Funds in accordance with regular Distribution Committee grantmaking procedures.

3.6  Notification to Grantee as to Source of Distribution.  Any distribution from an Advised Fund, unless otherwise requested by the Donor of the Fund, shall identify to the grantee organization the name of the Fund from which the distribution is made.

3.7  Requirement of Current Distributions.  It is the general policy of the Foundation that an amount at least equal to the net income (defined as income remaining in the Fund after the deduction of the appropriate administrative fees charged to the Fund by the Foundation) of an Advised Fund shall be distributed during the fiscal year in which such net income is realized or before the end of the twelfth month of the next fiscal year, unless the Distribution Committee determines that it is in the best interest of the Foundation to accumulate net income, in whole or in part, for a specific project, which it is contemplated will be accomplished in a reasonable period of time.

Section 4.  REPORTS AND EDUCATIONAL PROGRAM

4.1  Annual Reports.  A report of all distributions from Advised Funds shall be included in the annual report of the Foundation.  Additional reports of Advised Funds may be made as prescribed by the Distribution Committee.

4.2  Educational Program.  The President shall conduct an educational program publicizing to Donors and other interested persons in the community these procedures and the specific charitable needs supported or to be supported by Advised Funds.  Such educational program may be part of a larger effort of the Foundation to educate the public with regard to the scope of the charitable services of the Foundation.  As an integral part of this program, these procedures shall be disseminated in order to encourage additional contributions to the Foundation.

Sec. 5  CONTINUITY OF FUNDS

5.1  Upon Death, etc., of Donor.  Upon the termination, by death or otherwise, of the privilege of a Donor or successor designees of an Advised Fund to make recommendations, as provided in Section 3.2 above, the Fund shall continue as part of the General Purpose Fund of the Foundation.

5.2  Memorial Funds.  If the principal of such Fund exceeds the sum of $25,000 when the aforesaid privilege to make recommendations terminates, the Fund will continue indefinitely as an identified memorial fund named for the Donor (or for such other period or name designation as the Donor may have requested).

EXHIBIT A
List of Charitable Needs

Specific Charitable Needs Most Deserving of
Support From Funds of Stark Community Foundation

The following are categories of specific charitable needs consistent with the purposes of the Foundation as determined by its Distribution Committee and President under authority from the Distribution Committee.  These categories reflect the broad scope of purposes of the Foundation and the interests of the people of Stark County, Ohio in advancing human needs through a wide range of activities.  In determining its priorities, the Foundation acknowledges the benefits derived by the people in the Stark County, Ohio community from constructive projects in social welfare, medical, educational and cultural fields, without regard to their geographic proximity and whether they are otherwise embraced by funds normally available to local agencies for operating purposes.  This range of priorities has been the traditional concern of the Foundation and the philanthropic basis upon which it was organized and has operated.

Since unanticipated or unusual needs may arise, it may be necessary to make exceptions to or modifications of the following list of needs for emergency situations or innovative projects determined by the Foundation as most deserving of support at the time.  Further, in view of the necessity to meet changing conditions and to adjust to current responsibilities, the following list of needs and the range of  support may be changed or supplemented from time to time, as determined by the Distribution Committee or President. As used in this List, the term "charitable" includes educational and other purposes encompassed within the term.

Needs by Categories of Organizations

Charitable organizations or projects primarily serving the Stark County, Ohio area in the fields of:

 1.      Basic Material Needs
 2.      Community/Civic                
 3.      Conservation/Environment
 4.      Economic Development
 5.      Education
 6.      Fine Arts/Humanities
 7.      Health and Wellness
 8.      Human Services
 9.      Public Affairs
10.     Religion (for Advised Funds only)

Gifts Outside of Stark County

The Declaration of Trust establishing Stark Community Foundation specifically benefits the Stark County area.  The relationship with our donors is an ongoing partnership and must take into account their objectives, but must also recognize that Stark Community Foundation will always give priority to the betterment of Stark County in enhancing the quality of life of all of that county's citizens.  Therefore, with respect to geographic limitations, the Distribution Committee will allow the following support beyond Stark County:

A.       Charitable organizations outside the Stark County, Ohio area which the Foundation determines provide an identifiable benefit for the welfare of the Stark County community.

B        Charitable organizations outside of the Stark County, Ohio area which are of particular interest to the Donor and which have not previously received a charitable grant from the Foundation other than from an Advised Fund.  The following guidelines shall be met:

Individual Funds

1.       Donors shall be permitted to recommend distributions to qualified charitable organizations both within and beyond Stark County, without limitation during their lifetime.

2.       Successor advisors shall be permitted to make recommendations to those causes and charitable interests beyond Stark County consistent with the original donor's practice.  Because this Foundation was established to benefit Stark County, substantial interest in the local community by successor advisors will be encouraged.

3.       The Foundation will use its discretion in approving provisions in Donor Advised Fund agreements where intent to benefit interests beyond Stark County, after the Donor's death, is specified.

Corporate Funds

Donors shall be permitted to recommend distributions to qualified charitable organizations both within and beyond Stark County in areas where the corporation has manufacturing, sales, or other operations consistent with its business.

Stark Community Foundation will monitor activity involving grants to charitable causes outside of Stark County (from both individual and corporate funds) and report such activity to the Distribution Committee, from time to time.