FHTC Foundation: Policy Manual

Flint Hills Technical College Foundation
Conflict of Interest Policy
Where a member may be associated in any way to any individual firm or organization with which the Foundation may do or may consider doing business, that relationship shall be disclosed by the member to the Board, as appropriate. Where his/her business or other relationship may be involved in a financial transaction, the transaction shall be made as a result of competitive bidding or other objective measure in the best interest of the Foundation. The member concerned may properly participate in such discussions, may be counted in the quorum, but shall not vote in the final decision.

CODE OF ETHICS
The Flint Hills Technical College Foundation Board endorses the following standards of conduct as volunteers whose responsibility is to lead and govern the foundation through the formulation of Foundation policy and delegation of authority to the appropriate college staff members.

1. To model and encourage professional and ethical behavior at all times when conducting the business of the Foundation.
2. To abide by the provisions set forth in the corporation’s articles of incorporation, by-laws and operating agreement between the Foundation and Flint Hills Technical College.
3. To refrain from engaging in any behavior that might be construed as self-dealing or in conflict with the mission, goals, and fundamental purpose of the Foundation, including:
4. serving on boards of organizations that are in direct programmatic competition with the Foundation.
5. using the equipment or other resources of the Foundation to secure outside personal gain;
6. taking advantage of participation in the Foundation to advance personal, political, or profit-motivated activities;
7. marketing services or products to the Foundation on a non-competitive basis;
8. disclosing to outside parties any Foundation information when such information is not readily available to the general public (such as confidential donor giving information).
9. To devote time, thought and study to the duties and responsibilities of a foundation board member and/or officer in order to render effective and creditable service. This includes making business decisions for the Foundation based on good faith and with due diligence as any prudent person would attend to their own personal and business affairs.
10. To base decisions upon all available facts in each situation; to vote with honest conviction in every case, unswayed by partisan or personal bias of any kind and to abide by, respect and uphold the final majority decision of the Board.
11. To bear in mind under all circumstances that the primary function of the Board is to establish the policies by which the Foundation is to be administered, but that the administration of Foundation and the conduct of its business shall be left to the appropriate staff.
12. To carefully avoid the assertion of Board authority or preferences as an individual Foundation member or in concert with other members, other than at official Board meetings or as a result of official Board actions.
13. To refrain from any attempt to influence college business, individual admissions, employment, or purchasing decisions, except when the decision is an agenda topic at an official Board meeting.

As a duly elected or ex-officio member of the Flint Hills Technical College Foundation, I hereby certify that I understand and agree to the guidelines outlined above and

___ that, to the best of my knowledge, no circumstance exists with me or my immediate family that might be construed as a conflict of interest with my membership on the Flint Hills Technical College Foundation Board of Directors.

or

___ that personal or immediate family circumstances currently exist that possibly might be construed as a conflict of interest with my Foundation board membership. The circumstances are described below and are submitted to the Foundation’s leadership for review and recommendation.

Endowment Policies and Procedures

The following policies and procedures for the operation of the FHTC Foundation endowment funds have been established:

1. An endowment may be created for the purpose of funding scholarships, program development, institutional development, and faculty and student development at Flint Hills Technical College in Emporia, Kansas.
2. The endowment is held in perpetuity by the Flint Hills Technical College Foundation, which manages and invests it to provide a dependable and ongoing resource for the designated purpose.
3. A minimum of $10,000 is required for a contribution to be considered fully endowed in a person’s or an organization’s name. Funds may accumulate over five years until the required $10,000 is reached. If the minimum amount is not reached at the end of that time, the funds will go into the general scholarship fund.
4. Income on endowment principal will not be used until it has reached an amount sufficient to expend for its intended purpose, or for a minimum of one year, whichever comes first.
5. A Memorandum of Agreement will express the intent of the donor(s) in writing.
6. Endowment funds are invested and managed by a money manager in accordance with Investment Policy and Guidelines under the direction of the FHTC Foundation Finance Committee.
7. The principal of a fund shall be held in fiduciary trust in perpetuity and invested by a money manager under the direction of and in accordance with spending guidelines of the Flint Hills Technical College Foundation Finance Committee.
8. A Financial Statement and Accountants’ Compilation Report will be completed at the close of each fiscal year.
9. A copy of the Financial Statement and Accountants’ Compilation Report will be available in the FHTC Foundation office.
10. Endowed scholarship awards will adhere to the criteria established by the donor under the direction of the FHTC

Foundation Scholarship Committee.

1. Endowment requests must be submitted to and reviewed by FHTC Foundation. A Request Form is available from the Foundation office.
2. Flint Hills Technical College Foundation will not accept non-cash gifts without the prior approval of the Finance Committee, except securities having a cash value or being traded on a major stock exchange. Gifts will be accepted in accordance with the Gift Acceptance Policy.
3. In the event of unforeseen change of a political, economic, educational, or social nature making the use of all or part of these policies and procedures no longer practical or desirable, the FHTC

Foundation Board of Directors may provide for giving of Foundation funds as they deem advisable, keeping within the spirit of which they were to be used.

1. Point of Contact: Vice President of Advancement Flint Hills Technical College Foundation 3301 West 18 th Ave.

Emporia, KS 66801
Telephone: 800-711-6947 or 620-343-4600
Fax: 620-343-4610

Endowment Administrative Fee
To offset administrative and operating costs, and to secure permanent, reliable sources of funding for the Foundation’s infrastructure, an administrative fee will be assessed each fiscal year. The administrative fee is calculated with a rate of
1.5% to the endowment’s total corpus market value as of December 31 st of the prior year.

GIFT ACCEPTANCE POLICY

MISSION STATEMENT

The mission of the Flint Hills Technical College Foundation is to assist students through scholarships and to support the mission of the college by enhancing educational opportunities that lead to employment and continuous learning.

GIFT ACCEPTANCE POLICY
The Flint Hills Technical College Foundation has established the following gift acceptance policy for the purpose of outlining a process detailing the types of allowable gifts and the manner by which gifts will be reviewed and accepted or rejected.
GUIDELINES

1. The Chairperson of the Foundation Board of Directors, the Vice President of Advancement, any board members, volunteers or staff of the College or Foundation so designated have the authority to solicit and/or accept gifts on behalf of the Foundation or the College.
2. The Chairperson of the Foundation may establish a Gift Review Committee responsible for recommending whether or not the Foundation Board should accept proposed gifts. The Committee shall consist of no less than two members from the Foundation Board of Directors and no less than one member of the College Board of Trustees. The committee will also include the FHTC President as a non-voting member and the FHTC Foundation Vice President of Advancement as a non-voting member and convener. The Chairperson shall have the authority to appoint other volunteers or employees of the College, on an ad hoc basis, who have special expertise that may be needed in order to make a decision on a specific gift.
3. The Gift Review Committee may consider each gift according to its intended use, restrictions, liabilities and financial impact on the Foundation or the College, now and

in the future. The Gift Review Committee will only review gifts valued at more than
$5000 or gifts that potentially could have a consequential impact on the Foundation or the College. Only gifts, bequests, devises, endowments, trusts and similar funds that are designated for the use of the Foundation or the College consistent with the stated goals and mission of the College will be considered for acceptance.

1. The Vice President of Advancement or gift solicitor will refer to the Gift Review Committee before acceptance of gifts. Gifts that are given with unusual restrictions or designations or have the potential of jeopardizing the tax-exempt status or violating the Foundation or the College policies, local, state or federal laws will not be accepted.

TYPES OF GIFTS
CASH
The Foundation, regardless of amount, shall accept all gifts by cash, credit card, or check.
Checks shall be made payable to the Flint Hills Technical College Foundation, unless otherwise specified. In no event shall a check be made payable to an individual who represents the Foundation or College.
PUBLICLY TRADED SECURITIES
The Foundation can accept readily marketable securities, such as those traded on a stock exchange.
Gift securities are likely to be sold immediately by the Foundation.
For the Foundation’s gift crediting and accounting purposes, the value of the securities is the average of the high and low on the date of the gift, in accordance with IRS regulations.
CLOSELY HELD SECURITIES
Gifts of closely held corporate stock would be carried on the Foundation’s books at $1 in the absence of financial information that would enable determination of book value.
Such securities will be carried at book value until audited financial statements are provided to the Foundation so that book value can be substantiated, or the donor provides a qualified appraisal in compliance with IRS regulations.
An appraisal of securities may be conducted under the direction of the Foundation to determine both value and potential for sale.
Gifts of securities that require a holding period will be accepted and sold when the holding period has expired.
Gifts of securities that will not be accepted include: securities that are assessable or in any way could create a liability to the Foundation; securities

that, by their nature, may not be assigned (such as “S” corporation stock); securities that on investigation have no apparent value.
REAL ESTATE
The Gifts Review Committee will review all gifts of real estate.
The donor is responsible for obtaining an appraisal of the property, unless otherwise determined by the Foundation.
A member of the Gifts Review Committee must conduct a visual inspection of the property. If the property is located in a geographically distant area, a local real estate broker may substitute for a member of the committee in conducting the visual inspection. The Foundation may also require an environmental site assessment including Title V status for possible contamination, (i.e. leaking underground storage tanks) or other restrictions.
Due to the expenses associated with the gifts of real estate, only gifts valued in excess of $10,000 will be considered for acceptance.
Prior to presentation to the Foundation Board of Directors, the donor must provide the following documents: real estate deed; real estate tax bill; plot plan; substantiation of zoning status; environmental site assessment.
If the donor is giving a life estate gift, the donor may be asked to pay for all or a portion of the following: maintenance cost; real estate taxes; insurance; real estate broker’s commission and other costs of sale including appraisal costs.
If the real estate is an outright gift, the Foundation will pay for these costs.
For the Foundation’ s gift crediting and accounting purposes, the value of the gift is the appraised value of the real estate, excluding any costs to the Foundation for insurance, real estate taxes, broker’s commission, or other expenses of the sale.
Properties with mortgages will be considered on a case-by-case basis.
Consideration may include an independent appraisal and the mortgage percentage of property value. Mortgaged property is not acceptable for charitable remainder trusts.
LIFE INSURANCE
The Foundation will consider acceptance of gifts of life insurance policies only when the Foundation is named as the owner and beneficiary of 100% of the policy.
If the policy is paid-up, the value of the gift for the Foundation’s gift crediting and accounting purposes is the policy’s replacement costs.
If the policy is partially paid up, the value of the gift for the Foundation’s gift crediting and accounting purposes is the policy’s cash surrender value.
TANGIBLE PERSONAL PROPERTY

Gifts of tangible personal property to the Foundation should have a use related to the Foundation’s exempt purpose or have a related use to the College’s educational programs.
Gifts of jewelry, artwork, collections, equipment and software shall be considered for acceptance by the Gift Review Committee. Other matters that will be taken into consideration by the Foundation before deciding on acceptable gifts of personal property include: transportation costs; storage cost; cost of selling; cost of maintenance and repairs; location of property and cost of insurance.
Such gifts of tangible personal property defined above shall be used by or sold for the benefit of the Foundation or the College.
Depending upon the anticipated value of the gift, the Foundation shall have a qualified outside appraiser value the gift before accepting it.
The Foundation adheres to all IRS requirements for disposing gifts of tangible personal property and filing appropriate forms.
ADMINISTRATIVE ISSUES
The Foundation and its staff shall not act as an executor (personal representative) for a donor’s estate.
The Foundation may act as co-trustee of a charitable trust when the trust names the Foundation and/or College as a beneficiary of 50% or more of the trust.
The Foundation may pay for the drafting of legal documents for a charitable remainder trust of which the Foundation is named as a beneficiary of 50% or more of the trust. The donor’s own counsel must review the documents at the donor’s cost.
Terms and conditions must be agreed upon before an endowment is established; therefore, contact with the Vice President of Advancement for appropriate documentation is required.
In accordance with the Foundation’s Investment Policy, a minimum contribution of
$10,000 is required to establish a named endowment.
For restricted and endowed funds, if future circumstances change, or the donor fails to fulfill his/her obligation, or the purpose for which the fund is established becomes illegal, impractical or no longer meets the needs of the College, the Foundation may designate an alternative use in the spirit of the donor’s original intent for the gift to further the objectives of the College.

Statement of Investment Policies and Guidelines

The Flint Hills Technical College Foundation Board of Directors acknowledges responsibility to prudently manage those funds under its stewardship. Investment policies have been established to protect the principal value of the Foundation’s invested funds. This investment policy for such accounts is adopted to promote and preserve value for the future. FHT C
Foundation investments are intended to be permanent, providing a yearly source of funds to attain the mission of the Foundation. The Finance Committee as a standard procedure should conduct a review of these policies annually.

PURPOSE

The purpose of this statement is to identify investment goals of the Foundation and provide a set of investment policies for the management of Flint Hills Technical College Foundation funds and to provide a basis for monitoring the performance of those funds.

GOALS

First, to produce from those assets sufficient cash to meet the commitments of the Foundation and second, to grow the principal of the fund at a rate greater than inflation. At all times it is understood that risk to the principal of the assets be minimized. Over a period of time, the minimum goal for the total rate of return of the fund should be the current rate of inflation plus 3-7%.

POLICIES

The pursuit of the return objectives shall be guided by the following policies;

1. The diversification of assets will help ensure that adverse, unanticipated results from a security class will not have an excessive detrimental impact on the entire portfolio.
2. Asset classes and ranges considered appropriate for investment of the Foundation’s assets are to be determined by the finance committee, taking into consideration the investment guidelines below.
3. The finance committee is authorized to employ an investment manager or other professional to attain the goals for the fund.

GUIDELINES

1. Investments are invested and managed by a portfolio fund manager under the direction of the FHTC Foundation Finance Committee. Fund performance will be monitored quarterly by the finance committee.
2. Fund managers will maintain top quartile (25%) investment performance over three, five, and ten-year periods.
3. Fund portfolio performance will be screened for consistent three, five, and ten-year performance compared to the benchmarks, low expenses and low volatility.
4. An appropriate asset allocation mix, as determined by the finance committee, prudent to the long-term goals of the foundation will be maintained. Approximate percentage limits on the allocation of capital between asset categories are as follows: Equities 70%

Cash Equivalent/Fixed Income Securities 30%

1. Funds may be merged and mingled with other funds similarly held by the Foundation for investment purposes.
2. Excess income on endowed funds not expended for intended purpose will be reinvested.
3. Accounting of restricted, temporarily restricted and unrestricted funds will be monitored under the direction of the finance committee.
4. A money market account with check writing capabilities will be available within the investment account for deposit and withdrawal of funds.
5. P oint of Contact: Vice President of Advancement Flint Hills Technical College Foundation 3301 West 18 th Ave., Emporia, KS 66801

Telephone: 800-711-6947 or 620-343-4600

Fax: 620-343-4610

Operating Spending Policy and Guidelines

The mission of the FHTC Foundation is to “assist students through scholarships and to support the mission of the college by enhancing educational opportunities that lead to employment and continuous learning.”

Revenue for Foundation operations will be based on the average of the past three fiscal years of total endowment funds.
The percentage payout will be up to 6%. Percentage of payout for each category will be determined on an annual basis by the Finance Committee. The payout rate will be reviewed periodically and at least annually.

The spending of the General Operating Fund should be planned and monitored in accordance with the following policy:

1. Funds are to be expended on items that are not covered by the allocation of public funds.
2. Funds are to be expended on items that directly support the mission of the Foundation. The interpretation of “directly support” will be left to the discretion of the Vice President of Advancement.
3. The Vice President of Advancement will present a preliminary Operating Fund budget to the finance committee at the meeting prior to the end of the fiscal year. This preliminary budget will be based on the projected year-end fund balances. At the first meeting of the new fiscal year, a final budget will be presented to the Board of Directors based on the actual year-end balances.
4. The Operating Fund budget is divided into three categories:
5. Student Support: These funds are used to support foundation scholarships.
6. Administrative Support: These funds are used for salary.
7. General Operating: These funds are used for expenses related to fund raising and operations of the foundation office.
8. The Vice President of Advancement will present an annotated accounting of all expenditures from the Current Operating Fund at every regularly scheduled meeting of the Foundation Board of Directors.

For Gift Agreements: To be placed under “Financial Administration of the Fund” section on all agreements – endowments and non-endowed funds:

Cost Recovery Fees

To offset administrative and operating costs, and to secure permanent, reliable sources of funding for the Foundation’s infrastructure, the FHTC Foundation charges a one-time cost recovery fee of 5% upon receipt of each gift. The Fee does not impact the Donor, and the Donor receives an official receipt for the full amount contributed.

The FHTC Foundation Board of Directors reviews and approves the Foundation’s Fee Policy annually. While no guarantee can be made as to the future level of fees, in assessing on both endowed and non-endowed contributions the Foundation shall act in good faith, with prudency, and will consider, if relevant, the following factors: the preservation of endowed funds, general economic conditions, expected investment return and appreciation, and other resources for the Foundation.