Owsley County Kentucky

Fund For Excellence Policies

Unrestricted and Restricted Funds There are two categories of funds/gifts which may be given to the Owsley Fund for Excellence. Both are tax deductible.

•	Unrestricted funds are those which the donor has not placed restriction on as to how the funds are used. These funds are to be used at the discretion of the Board of Directors either for:
	·	Administrative purposes (stamps, telephone bills, suplies used in fund raising, to not exceed 10%); or as
	·	Additions to the restricted funds, such as, donations to the 7th grade fund, mini grants for school activites which might not be funded or are incompletely funded, or scholarships and rewards and incentives for achievement and attendance.

•	Restricted funds are those upon which the donor has placed definite restrictions as to the spending of these funds. Donors may request that funds go to a specific project, such as, a scholarship, the 7th grade investment fund, mini grants, etc. Donors cannot require that the income from endowment income go to a specific individual or beneficiary, but may designate a specific area.

Donors who contribute as much as $10,000.00 over a 10 year period may establish an endowment in honor of themselves or others. An endowment gift is one in which the original principal is never spend, but is kept and at least 80% of the interest or investment income spent as the donor has specified: scholarships, mini grants, 7th grade fund, or loan funds, with no more than 10% going to administrative cost and 10& going back into the endowment fund to account for inflation. Established endowments and loan funds should be in amounts of no less than $10,000. However, if one wanted to fund an endowment over a period of 10 years, the interest income from the partial endowment could be added to the principal until such a time as the amount reached $10,000. Once the endowment reached $10,000.00, the income earned would be expended for the purpose that the donor had specified. If for some reason, the installment endowment did not reach $10,000.00, then the principal would be spent for the purpose that the donor had chosen.

Methods of funding endowments are varied. Cash is the simplest and most common. Donors who contribute cash receive an immediate charitable income tax deduction. However, ad onor could include the Fund for Excellence in a will as a beneficiary of a specific dollar or property amount. Life insurance is another method of providing an endowment. The insurance premiums are tax deductible as long as they are kept paid up.

Each new endowment must be approved by the Board of Directors upon recommendation of the President of the Board and an agreement signed between the Secreary and the donor. The Board of the Fund for Excellence has the power to change a fund's specified purpose if the donor's original intention becomes unnecessary, impossible, or inconsistent with the charitable needs of the area.

Fund for Excellence Main · Mini Grants · Scholarships · 7th Grade Fund
For more information contact: Molly Turner · Director of Community Development Owsley County Action Team P.O. Box 997 · Booneville, KY 41314 Phone: 606-593-7296 · Fax: 606-593-7781 Email: mturner@owsleycountykentucky.org