Instrument Guidelines

Instrument Guidelines

Gift Annuities

No gift annuity shall be issued in exchange for an amount of less than five thousand dollars ($5,000) without special circumstances being cleared with the Vice President for Business Affairs; nor will an immediate one-life gift annuity be considered on an individual under forty (40) years of age without similar clearance. Deferred one-life gift annuities on lives under forty (40) years of age will be considered without the above restrictions.

Gift annuity rates of return, as a general rule, shall be those most recently approved by the American Council on Gift Annuities. Gift Annuities that may be written for special purposes with respect to either health conditions or educational opportunities for designated beneficiaries will generally follow the same rates. However, they will be able to be adjusted to serve the donor and beneficiary as approved by the Vice President for Business Affairs in consultation with the current investment committee of the University.

Investment of gift annuity funds shall be overseen by the Vice President for Business Affairs consistent with the current investment policy for life income funds established by the Investment Committee of the University.

Unrestricted maturing gift annuities shall be recognized as additions to general endowment funds in accordance with generally accepted accounting principles, or may be placed in the current operations budget in the year in which they mature only upon the recommendation and approval by the Board of Trustees of the University.

The Board of Trustees may consider reinsuring annuities with one or more financially sound insurance companies, as recommended by the Board's Investment Committee.

Charitable Remainder Trusts

The following must be considered by Ashland University to serve as trustee of a charitable remainder trust:

Unitrust and annuity trust agreements are generally written for one or two lives. However, in cases involving term of years or multi-generational unitrusts, more than two lives may be considered in certain cases. The Executive Committee of the Board of Trustees must give their approval for agreements that reach beyond two generations.

Normally, Ashland University shall not serve as trustee or co-trustee pursuant to a charitable remainder trust unless the University is designated to receive at least one percent more than the next highest remainderman and is an irrevocable beneficiary. Appropriate fees may or may not be charged. Special considerations will be made and can be approved by the Executive Committee of the Board of Trustees.

Ashland University recognizes there are many professional agents of charitable trusts outside of charities themselves. In order to maximize the available resources possible within the scope of the highest ethical standards, the office of Legacy Estate Programs will seek to obtain referrals from attorneys, accountants, financial planners and other professionals. Ashland University shall not pay finders fees and nothing shall be done to jeopardize or compromise any standard or procedure that is adhered to within the normal context of direct relationships with a donor.

Annuity Trusts - The minimum principal amount shall be twenty-five thousand dollars ($25,000). The amount to be paid annually shall be no less than 5 percent of the initial net fair market value of the assets transferred (the minimum set by law) and no more than 10 percent of initial net fair market value of the assets transferred.

Unitrusts - The minimum principal amount accepted will be two hundred dollars ($200) per month, with the overall expected commitment being twenty-five thousand dollars ($25,000). The same percentage limits mentioned above for annuity trusts will be applied to unitrusts. However, due to the nature of the three types of unitrust vehicle options and their many possible variations of investment opportunity (either with Ashland University serving as administrator and/or fiduciary or with an outside administrator and fiduciary) that aim to meet donor's objectives, these rates are paid per direction of individual document. (See investment policy statement for ongoing valuation guidelines).

All trusts under one hundred thousand dollars ($100,000) shall be administered by Renaissance, Inc., or a similarly equipped administrator.

Pooled Income Funds

The Ashland University Long-Term Pooled Income Fund of 1981 and the Ashland University U.S. Bond Pooled Income Fund of 1985 and any such new funds established in the future exist so investors with charitable intent may participate.

Designated university personnel from the Development Office and/or the Business Office are directed to present a comprehensive prospectus of performance of these funds to potentially interested participants prior to securing any agreement. The fund will be administered by the University's Vice President for Business Affairs under direction of the Investment Committee of Ashland University. All funds will be invested to recognize a market competitive return with careful attention to potential risk of principal erosion and a balance of growth opportunities.

Bequests

The University shall not prepare wills or living trusts for individuals. However, proper wording for a bequest remembering the University may be provided. In addition, assistance with either will or living trust preparation may be proper so long as the final document is drafted by the prospective donor's attorney.

Other Arrangements

The preceding are considered the most commonly used planned giving instruments. However, other gift arrangements (i.e., life insurance, lead trusts, gifts-in-kind, estate note, loans, etc.) are also viable and shall be executed when appropriate.