Chief Seattle Council GIft Acceptance Policies by Chief Seattle Council, BSA

GIFT ACCEPTANCE POLICIES

CHIEF SEATTLE COUNCIL BOY SCOUTS OF AMERICA

CONTENTS GIFT ACCEPTANCE POLICIES

GUIDELINE 1 – GENERAL GIFT GUIDELINES

GUIDELINE 2 - GIFTS DEFINED

GUIDELINE 3 – FINAL DECISION FOR GIFTS

GUIDELINE 4 – GIFT ACCEPTANCE COMMITTEE COMPOSITION

GUIDELINE 5 – GIFT TRANSMITTAL

GUIDELINE 6 – GIFT ACCEPTANCE

GUIDELINE 7 – GIFT ACKNOWLEDGEMENT AND RECOGNITION

GUIDELINE 8 – AUTHORIZED AGENTS

GUIDELINE 9 - PRIORITY OF THE DONOR'S INTEREST

GUIDELINE 10 - CONTINGENT OR RESTRICTED GIFTS

GUIDELINE 11 - NAMING AND UN-NAMING POLICY

GUIDELINE 12 - COMPLEX GIFTS AND ENDOWMENT GIFTS FOR SPECIFIC PURPOSES

GUIDELINE 13 - USE OF PROFESSIONAL ADVISORS

GUIDELINE 14 - AUTHORIZATION FOR NEGOTIATION

GUIDELINE 15 - AVOIDANCE OF PRESSURE TECHNIQUES

GUIDELINE 16 – COUNSEL

GUIDELINE 17 - CONFIDENTIAL INFORMATION

GUIDELINE 18 – ACCEPTABLE TYPES OF GIFTS

GUIDELINE 19 – GIFTS OF SERVICES GUIDELINE 20 – GOVERNING CASH

11 11

GUIDELINE 21 – GOVERNING DONATIONS OF TANGIBLE PERSONAL PROPERTY AND REAL ESTATE

GUIDELINE 22 – GOVERNING SECURITIES

GUIDELINE 23 - CHARITABLE GIFT ANNUITIES

GUIDELINE 24 - GOVERNING CHARITABLE REMAINDER UNITRUSTS

GUIDELINE 25 - GOVERNING CHARITABLE REMAINDER TRUSTS

GUIDELINE 26 - GOVERNING CHARITABLE INCOME (LEAD) TRUSTS

GUIDELINE 27 - IRREVOCABLE TRUSTS, DEPOSIT AGREEMENTS, AND LIFE ESTATE GIFTS.

GUIDELINE 28 - GOVERNING POOLED LIFE INCOME AGREEMENTS

GUIDELINE 29 - REVOCABLE TRUSTS

GUIDELINE 30 - LIFE INSURANCE GIFTS

GUIDELINE 31 – BEQUESTS

GUIDELINE 32 - INVESTMENT OF FUNDS AND INTERVAL OF PAYMENTS

GUIDELINE 33 - FINAL DISPOSITION

CHIEF SEATTLE COUNCIL

BOY SCOUTS OF AMERICA

GIFT ACCEPTANCE POLICIES The purposes for establishing the Gift Acceptance Policies of the Chief Seattle Council are as follows: 1. To prevent misunderstandings between the donor and the prospect. 2. To ensure equal treatment of donors. 3. To make the Chief Seattle Council more accountable both internally and externally. 4. To foster sound fiscal management. 5. To establish gift levels and gift recognition for each level. 6. To protect the Chief Seattle Council’s charitable status. 7. To help the Chief Seattle Council avoid public relations problems. 8. To educate the board and committee members on major gift fundraising. 9. To assist the Chief Seattle Council adapt to changing times, through the regular recommendations of the Gift Acceptance Committee. 10. To make everyone aware of gift guidelines. In summary, these guidelines provide the parameters within which the staff and volunteers shall function in discussing outright gifts and deferred gift programs with interested prospects. Second, these guidelines identify procedures and limitations on how gifts will be accepted by the Chief Seattle Council. Lastly, these policies are to determine which types of gifts will or will not be accepted on behalf of the Council. These gift acceptance polices were developed by a special committee of technically oriented professional individuals skilled in the fields of law, accounting, investment, banking, and insurance. The guidelines reflect both state law and federal law. The guidelines are adopted as official policy by the council's executive board. GUIDELINE 1 – GENERAL GIFT GUIDELINES The Chief Seattle Council encourages the solicitation and acceptance of private gifts and grants that enable it to fulfill its mission. Gifts may be sought from individuals, corporations, and foundations. However, the Council will protect its integrity and independence and will not accept gifts that are not consistent with the mission and vision statement of the Chief Seattle Council, Boy Scouts of America. Nor will gifts that may expose the Council to adverse publicity, require expenditures beyond the Council’s resources, or involve the Council in unexpected responsibilities because of their source, condition, overly restrictive purposes or that involve unlawful acts be accepted. Acceptance of contingent gifts will be reviewed by the Gift Acceptance Committee.

-MISSION STATEMENTThe mission of the Chief Seattle Council, Boy Scouts of America is to prepare young people to make ethical and moral choices over their lifetimes by instilling in them the values of the Scout Oath and Law. -VISION STATEMENTThe Chief Seattle Council, Boy Scouts of America is and will remain the state of Washington’s foremost youth program of character development and values-based leadership training. GUIDELINE 2 - GIFTS DEFINED • A gift is defined as any transfer of personal or real property made voluntarily and without consideration. Gifts of tangible personal property, securities, real estate, and gifts by bequest or non-cash gifts are subject to special handling and will be processed with guidance from the Council Gift Acceptance Committee. Gifts made be made in several forms: 1) outright, 2) conveyance of the gift in such a way that the donor or the donor’s designees retain(s) income from it for a term of years or for his/her lifetime(s), 3) in the form of a bequest through the donor’s will or trust, 4) conveyance of the income from an asset placed in trust for a period of years and 5) conveyance of real property, while maintaining the right to occupy it for the lifetime of the donor. • A non-gift is 1) payments for goods or services, which are considered operating revenue, 2) scholarship payments where the donor has selected the recipient (s) of the award (s) 3) employee donations where the donation contributed is to a budget of which they are the direct recipients. GUIDELINE 3 – FINAL DECISION FOR GIFTS The Council Board has given the responsibility for gift acceptance to the Scout Executive/CEO. However, the Gift Acceptance Committee will be consulted and input sought when a gift opportunity suggests the need for caution or where serious liability and consequences for the Council if the item is potentially valueless in terms of a sale or any gift that is out of the ordinary or could expose the Council to risk. Types of gifts reviewed by the Gift Acceptance Committee may include, but are not limited to: • Gifts of real property or an interest therein • Gifts of closely-held securities, promissory notes, partnership interests, stock options, or other negotiable instruments • Gifts of undivided interest or future interests • Gifts of tangible personal property such as paintings, sculpture, furniture, or other works of art, or collections of such, if made on the condition or expectation that the items will be permanently exhibited, or that the collections will be maintained and shown as such.

• • • •

Gifts that, because of their unusual nature, present questions as to whether they are within the role and scope of the Chief Seattle Council. Gifts that, because of their size or nature, present questions as to the impact on the Chief Seattle Council, or a particular program area. Gifts that might raise questions about the Chief Seattle Council’s integrity or independence. Gifts that present the potential for an obligation on the Chief Seattle Council under local, state, or federal law that either may be unwilling or unable to assume.

GUIDELINE 4 – GIFT ACCEPTANCE COMMITTEE COMPOSITION The Gift Acceptance Committee will comprise of the Development Committee of the Chief Seattle Council Board of Directors, Director of Development for the Council, the Council Controller, and Finance Director for Major Gifts. The Development Committee Charter is provided in Appendix I. GUIDELINE 5 – GIFT TRANSMITTAL All gifts to the Chief Seattle Council should be directed through the Council’s Development Department, where they are properly acknowledged and recorded. When cash, checks, or other assets are sent to the Development Department, they should be accompanied with the following information: account number, if known; name of responsible person to whom acknowledgement should be sent, particularly in the case of corporate checks; plus copies of all correspondence relating to the gift. For gifts-in-kind, in addition to the above-listed information, the following documentation may be required: the donor’s letterhead or other standard documentation such as a catalogue or published price list giving the value and description of the equipment or products, usually including product identification numbers; any terms of the donation; and a packing slip or other paperwork to verify receipt of the gift. In addition a qualified appraisal must be submitted for any gift-in-kind of $5,000 or more in value. For all gifts-inkind, the physical location of the gifted item must be included. Checks should be made payable to the Chief Seattle Council, Boy Scouts of America. Title to gifts of securities and real property should be transferred to the Chief Seattle Council, Boy Scouts of America. All cash gifts should be sent to Chief Seattle Council for deposit immediately. If questions remain regarding donor wishes, adjustments may be made at a later date with proper documentation. In the case of planned gifts (trusts, annuities, insurance, life estates) the Development Department may aid the donor in producing the necessary information. GUIDELINE 6 – GIFT ACCEPTANCE

It is important to distinguish between gift acknowledgement conducted at the Council and official gift acceptance and acknowledgement that provides the donor with a receipt for tax purposes. GUIDELINE 7 – GIFT ACKNOWLEDGEMENT AND RECOGNITION A formal contribution statement will be sent to all donors who have given a gift over 250 dollars. For donors who give gifts below 250 dollars, a formal contribution statement will be furnished upon request of the donor. Periodically, the Council may acknowledge gifts through newsletters, thank you notes, recognition societies, etc. It is the responsibility of the donor to consult appropriate tax authorities or licensed professionals to determine appropriate documentation for their personal tax purposes. In addition, the Chief Seattle Council has established recognition levels as a means of extending its appreciation to donors. These levels and criteria may change at the direction of the Development Department. GUIDELINE 8 – AUTHORIZED AGENTS Only employees of the Chief Seattle Council and approved volunteers acting on behalf of the Chief Seattle Council for are authorized to accept gifts on behalf of the Council. GUIDELINE 9 - PRIORITY OF THE DONOR'S INTEREST The interest of the donor shall have priority over the interest of the Council. No program, trust agreement, contract, or commitment may be urged upon any donor or prospective donor to benefit the council at the expense of the donor's intent. GUIDELINE 10 - CONTINGENT OR RESTRICTED GIFTS a. If a donor wishes to restrict a gift to a Council project or specific purpose, the donor must provide written instruction to the Council for the administration of the proposed gift. The donor may also provide a non-binding precatory letter (See Appendix II for a sample) that explains the spirit of the gift. b. The gift is not accepted until the donor receives written notification of acceptance from the Council. c. The Council may reject the proposed restricted gift based on the written instruction for such reasons as the restriction is too cumbersome, does not address a need of the Council in accomplishing the mission of the Boy Scouts of America, or may create unintended negative consequences. Therefore, a donor who wishes to restrict a gift is encouraged to do so with prior consultation with the Council. d. Copies of the documentation for an accepted restricted gift (written instruction, precatory letter, written notification of acceptance) will be kept in the permanent archives at the Council Office.

e. If the Council Board has determined that the expressed project or purpose is completed and the restricted gift amount is not exhausted, the Council will apply the amount to a similar project or purpose. If that is not possible, the Council will apply the amount to the general endowment. GUIDELINE 11 - NAMING AND UN-NAMING POLICY For the purpose of recognizing a significant gift the Council, the Council may name a building, project or fund in honor of a donor or non-donor honoree. Overall responsibility, direction, authority, and oversight of the building of a specifically named project or fund lies with the Council, unless otherwise stated in approved written instruction for a restricted gift. Further guidance is found in the Council Naming and UnNaming Policy (Appendix III). GUIDELINE 12 - COMPLEX GIFTS AND ENDOWMENT GIFTS FOR SPECIFIC PURPOSES For complex gifts or endowment gifts for specific purposes to the Council, the Council will furnish a Memorandum of Understanding (Appendix IV) and/or the Endowment Acceptance Policy (Appendix V) to be signed by the Council and Donor(s) and kept in the Councils permanent archives). Gifts totaling $50,000 will be required to establish a separate endowment fund account. Donors are encouraged to recognize that over the many years following the establishment fund account, the uses and purposes of the fund may no longer exist and/or are in conflict with the policies of the Chief Seattle Council. Therefore, the Chief Seattle Council, bearing in mind the wishes of the donor (s), may allocate the funds be used in a manner that is in the best interests of the Council. The Chief Seattle Council will seek changes through Probate to any bequeathed endowment guidelines that are in violation of any statutory regulations. At the initial inquiry by a prospective donor regarding an endowment, the Development Department will be notified promptly. Donors are not permitted to have control over the investment of endowment funds or the use of the earnings beyond the initial restrictions. GUIDELINE 13 - USE OF PROFESSIONAL ADVISORS a.All prospective donors shall be advised to seek their own counsel in matters relating to deferred gifts, major gifts, tax and estate planning. b. The Chief Seattle Council shall seek counsel in all matters pertaining to its major gifts program and shall execute no planned giving agreement without the advice of legal counsel, unless an unmodified pre-approved standard agreement is used.

c. All agreements in which the Chief Seattle Council is the trustee shall follow the format of the specimen agreements approved by legal counsel for the council. d.The Chief Seattle Council will not pay “finders fees” or commissions to an advisor bringing or referring a gift. e.The Chief Seattle Council may give verbal/public recognition to advisors in association with the donor and their gift. If a donor wishes anonymity, every effort will be made to comply with donors wishes and the advisor may be recognized in association with an anonymous gift. f.The Chief Seattle Council may periodically conduct seminars that include professional advisors for informational and prospective donor cultivation purposes. If a prospective donor decides to seek the advice of a presenter for a gift to the Council, the Council understands that the advisors are working in the interest of their clients, except in cases where the professional advisor is an employee of the Boy Scouts of America. Inappropriate influence as to the direction and amount of the gift as well as any possible perceived conflict of interest is discouraged. g.A conflict of interest statement (Appendix VI) that restates the above provisions of this guideline may be signed by advisors who have a relationship with the Council and are working with a donor with regard to a gift to the Council. GUIDELINE 14 - AUTHORIZATION FOR NEGOTIATION a. Interested representatives of the council are encouraged to discuss planned giving with prospective donors. However, only persons authorized by the executive board may formalize planned giving plans with prospective donors. Such plans must follow these guidelines and the format of specimen agreements approved by legal counsel for the council unless otherwise approved by the board. b. All agreements that do not meet the requirements of the guidelines must receive prior approval by legal counsel for the council and a majority of the council's Gift Acceptance Committee. The Gift Acceptance Committee may take action, including action by phone conference, on behalf of the board to approve an agreement not meeting these guidelines only when said committee determines it is not practicable to delay a decision on approval until the next council executive board meeting. The Gift Acceptance Committee shall report all approved agreements to the council executive board's first meeting following such approval. GUIDELINE 15 - AVOIDANCE OF PRESSURE TECHNIQUES a. Representatives of the Chief Seattle Council shall not use any high pressure sales techniques when working with prospective donors. b. All personnel employed to administer or promote deferred gifts shall be paid a salary or retained on a per diem or annual basis, and shall not receive any commission or other compensation constituting or giving the appearance of constituting an interest in any planned gift agreement.

GUIDELINE 16 - COUNSEL The Chief Seattle Council may decline gifts if it is not satisfied that the donor has received proper independent legal and/or financial counseling, or that the gift is not in the best interest of the donor GUIDELINE 17 - CONFIDENTIAL INFORMATION All information concerning donors and prospective donors, including names, names of beneficiaries, amount of gift, size of estate, etc., shall be kept strictly confidential by the Chief Seattle Council and its authorized personnel unless permission is granted by the donor to release such information. GUIDELINE 18 – ACCEPTABLE TYPES OF GIFTS The Chief Seattle Council will accept the following types of gifts. • Service • Cash • Tangible Personal Property and Real Estate • Securities • Charitable Gift Annuities • Charitable Remainder Unitrust • Charitable Remainder Trusts • Charitable Lead Trusts • Irrevocable Trusts • Pooled Income Funds • Revocable Trusts • Bequests • Life Insurance Beneficiary Designations The Chief Seattle Council will not accept the following types of gifts • Oil, Gas, and Mineral Interests • Bargain Sales • Intellectual Property Rights GUIDELINE 19 – GIFTS OF SERVICES Operating largely on the basis of volunteer efforts, the Chief Seattle Council in effect seeks gifts of time and other services on a considerable scale. However, services – while crucial and much appreciated – are not tax-deductible to donors beyond out-of-pocket expenses associated with the service that otherwise the Council would have paid for. The Chief Seattle Council does not issue gift receipts or acknowledgements for such out-of-pocket expenses.

GUIDELINE 20 – GOVERNING CASH Gifts of cash are valued at their U.S. monetary worth GUIDELINE 21 – GOVERNING DONATIONS OF TANGIBLE PERSONAL PROPERTY AND REAL ESTATE Tangible Personal Property - The Chief Seattle Council welcomes and seeks gifts of equipment. However, these gifts must fit within the stated missions of the Chief Seattle Council. Major gifts of real and personal property are over $5,000 – such as land, houses, paintings, antiques, and rare books – are recorded at the fair market value placed upon them by an independent qualified appraisal as defined by the IRS. New gifts, $5,000 or more, require a recent bill of sale, or appraisal from the corporation, or independent qualified appraisal. Used gifts, $5,000 or more, require an independent qualified appraisal. If the equipment is donated by the corporation that purchased it, the Chief Seattle Council credits the value determined by a recent bill of sale or independent qualified appraisal. If an independent appraisal is needed, the donor pays for it. Appraisals made by the Chief Seattle Council personnel are unacceptable because the Council is party to the transaction. If the claimed value of all tangible property contributed, at the time of the donation, exceeds $500 (regardless of their individual values), the donor must complete appropriate parts of IRS form 8283, and attach it to his or her federal income tax return. When contacted by the donor the Development Department will complete and sign the appropriate sections. The Chief Seattle Council is responsible for filing IRS Form 8282 for gifts of tangible personal property, valued at $5,000 or more, and disposed of by the Chief Seattle Council within two years of the date of the gift. Small gifts of real and personal property such as rare books, prints, etc., with an apparent worth of less that $5,000 – are valued by the donor and their informal valuation is used for internal reporting purposes. Real Property and Real Estate The Chief Seattle Council must receive a reasonably current appraisal of the fair market value of the property and donor's interest in the property Chief Seattle Council would receive if the proposed gift were approved. The Development Committee should inform the donor that, if the gift is completed, the IRS requires a qualified appraisal made within sixty days of the date of the gift. Development officers must understand and communicate to donors the Chief Seattle Council’s practice of disposing of all gifts of real estate as expeditiously as possible. Thus, regardless of the value placed on the property by the donor's appraisal, the Chief Seattle Council will attempt to sell at a reasonable price in light of current market conditions, and the donor needs to be informed that any such sale occurring within two years of the date of gift will be reported to the IRS on Form 8282. In most cases, IRS regulations require that either the donor pay for the appraisal directly, or if the charity (CSC) pays for the fee, the donor will be issued an IRS Form 1099 characterizing the fees as miscellaneous income.

-Site Visit: The Chief Seattle Council will verify the condition of the property. Through this visit the representatives should take note of the improvements and amenities, if present. Defects in paint, plumbing, appliances, roofs, foundation, walls, floors, should be observed. If necessary, the opinion of a contractor should be secured if a major problem is suspected. -Potential Environmental Risks: In order to protect the Chief Seattle Council from the high risk associated with accepting environmentally contaminated property, all proposed gifts of real property, including gifts from estates, may be required to provide a Phase 1 environmental audit performed at the donor's expense or at the expense of the Program benefited by the gift. All prospective donors should be alerted to this potential process as discovery of a potential problem may have an economic impact on them, whether or not the gift is accepted by the Chief Seattle Council. The Council’s agent will provide a recommendation concerning the need for an environmental audit. The Chief Seattle Council may require the donor to execute an environmental indemnity agreement. -Carrying Costs: The existence and amount of any carrying costs, including but not limited to property owners' association dues, country club membership dues and transfer charges, taxes and insurance, must be disclosed and funded by the donor or the program benefited by the gift. -Title Information: A copy of any title information in the possession of the donor, such as the most recent survey of the property, a title insurance policy, and/or an attorney's title opinion must be furnished. -Checklists: The Development Department will complete a written summary of the proposed gift based upon the Real Estate Checklist (Appendix VII). -Acceptance: All gifts of Real Property must be approved by Scout Executive. If a proposed gift of real property is approved by the Scout Executive, the Development Department will prepare an acknowledgement and receipt of the gift on behalf of the Chief Seattle Council when the property has been properly recorded in the local Recorder's Office. The gift will be completed by the execution and delivery of a deed of gift or other appropriate conveyance. The costs associated with the conveyance and delivery of the gift, including, but not limited to recording fees and, if deemed necessary, a current survey, title insurance and/or an attorney's title opinion, will be either paid by the donor or charged to the fund account of the department(s), program(s), or endowment(s) to benefit by the donation. In addition, the filing of Form 8283 by the donor may be required by the IRS for gifts of real property. The Chief Seattle Council will complete and execute the Section of Form 8283 required to be completed by the Donee. GUIDELINE 22 – GOVERNING SECURITIES

a. Publicly- Traded Securities: These are securities regularly traded on a public stock exchange. The value of the gift will be the mean of the highest and lowest selling prices quoted for the stock on the valuation date of the gift, as defined below. b. Closely – Held Securities These are shares of stock in entities, which have been organized for profit-making purposes, and are rarely traded on stock exchanges. Donors may attempt to give shares of closely-held corporate securities to the Chief Seattle Council in the same manner as publicly traded securities. However, because closely-held stock is not publicly traded, these securities present special concerns and will be reviewed by the Gift Acceptance Committee before their acceptance. c. Receipt of Stock: Donations of stock should be delivered to the Chief Seattle Council in person. Valuation: The value of a gift of securities is normally the mean between the high and low market value on the date of the security is transferred and therefore will be the date of delivery. as follows. Neither losses nor gains realized by the sale of the securities after their receipt affect the gift value credited to the donor. Any brokerage fees incurred and changes in value resulting from liquidation are considered gains, losses, or operating expenses or earnings of programs benefiting by the gift. GUIDELINE 23 - CHARITABLE GIFT ANNUITIES a. Charitable Gift Annuities are done through the National BSA Gift Annuity Program and is administered through State Street Global Advisors in Boston, MA. They can be used to benefit the Chief Seattle Council. A charitable gift annuity is a contract between the Boy Scouts of America National Council and the donor. In return for a gift of cash or marketable securities, the National Council guarantees to pay to the donor and his or her survivor, if so specified, a fixed annual annuity in equal installments until the death of the surviving annuitant. The National Council’s obligation to pay the annuity amount is guaranteed and secured by all assets of the Council, not merely those exchanged for the annuity contract. Because of this guaranteed obligation, no gift annuity amount shall be used for the intended purpose, but shall remain fully funded, until the National Council obligation to make annuity payments has been terminated. b. Initial charitable gift annuities shall be issued for at least ten thousand dollars ($2,500). c. The minimum age of beneficiaries for all life income gifts is fifty-five (55) years of age at the time income payments begin. lf payment is to be deferred, the period of deferral between the transfer for the deferred payment annuity and the date the annuity payments start shall be no more than twenty (20) years. d. No gift annuity agreement shall be for more than two lives. No exception shall be made to this requirement -- otherwise, under law, the Chief Seattle Council will be taxed on a large part of the gift's earnings.

e. The fixed rate of payment for life is established when the annuity contract is signed. Criteria for determining the rate depends upon the age(s) of the annuitant(s). When there is more than one recipient, the rates will be lower. The older the annuitant(s) at the time the annuity is established, the higher the fixed rate that can be offered. The Chief Seattle Council, as well as most other charities, relies on the rates recommended by the American Council on Gift Annuities, except in cases where the donor prefers to accept a lower rate. The rates are actuarially determined with the goal of having at least half the gift asset passed on to the charity and the other half paid out to the non-charitable beneficiaries in the form of annuity payments. f. Gift annuity agreements shall be issued only if the charitable gift, computed using standard government table, exceeds ten percent (10%) of the amount transferred. No exception shall be made to this requirement -- otherwise, the Chief Seattle Council will be taxed on a large part of the gift's earnings. g. As a rule, the Chief Seattle Council will not accept a gift annuity for tangible personal property or real estate holdings. GUIDELINE 24 - GOVERNING CHARITABLE REMAINDER UNITRUSTS a.

Charitable Remainder Unitrusts are a gift vehicle which irrevocably transfers the remainder interest of an asset’s value to the Chief Seattle Council upon the death of the named income beneficiaries or at the end of a specified term of not more than twenty years. The donor can name him or herself and/or others as income recipients, with payments made concurrently or consecutively.

In a unitrust, the donor creates a formal trust arrangement though which donated assets may be transferred to the Chief Seattle Council. The donor cannot stipulate in the trust agreement that the original assets placed in the trust be retained for the life of the trust. These assets are then managed according to the investment strategy of the trustee.

Types of unitrust gifts: 1. Straight Unitrust – This type of unitrust pays a fixed percentage of the net fair market value of its assets, as valued annually (January 1) to the designated beneficiaries. Additional contributions may be added at any time. 2. Net Income Unitrust – This agreement stipulates that the trust will distribute either the actual amount of income earned or the established percentage payout rate, whichever is LESS. excess

3. Net Income Unitrust with Make-up Provision – This agreement uses current income from the trust to pay the beneficiary (ies) income lost during

the years when earnings are insufficient. d.

If the Chief Seattle Council is to serve as trustee without compensation, the minimum amount to establish a charitable remainder unitrust shall be $100,000 and the terms of the agreement must meet criteria approved by the council executive board;- and the charitable contribution, computed using standard government tables, should be the greater of $50,000 or 25% of the initial level of funding. The amount of the initial gift may be less than $100,000 if other factors dictate that to make an exception to this rule would be in the best interests of the Chief Seattle Council. Donors with gifts under $100,000 should be encouraged to participate in the Boy Scouts of America Pooled Income Fund, the National Gift Annuity Program, or to seek another trustee.

e. The minimum age of beneficiaries for all life income gifts is fifty-five (55) years old at the time payments begin. The minimum age, however, is not applicable for trusts of terms of years and the payment rate is subject to negotiation. For donors below 55, in special cases, approval may be granted by the Chief Seattle Council. f. In accordance with IRS regulations, the fixed percentage cannot be less than five percent and is established when the trust is created and cannot be changed. The maximum payment limitations are dependent upon the ages of the beneficiaries, type of trust, anticipated investment strategy and prevailing economic conditions. g. It must be recognized that the fixed percentage rate is established by the donor and does not require approval by the Chief Seattle Council; however, when making proposals to prospective donors, the Development Department shall not use a rate above eight percent (8%) without first consulting with Gift Acceptance Committee. Prospective donors should also be advised that as the fixed percentage and number of income beneficiaries increases, the charitable contribution deduction to which the donor is entitled will correspondingly decrease. h. The maximum payout rates are subject to negotiation in the case of net income unitrusts. There is no maximum number of income beneficiaries, but there shall be no more than two generations of income beneficiaries. i.

Gifts of cash and appreciated securities are appropriate for any of the three types of unitrust. Charitable remainder unitrusts funded with real estate or other non-liquid assets

shall take the form of a "net income" or "net income with make-up" unitrust. The net income unitrust (with or without make-up provision) is the best way to handle gifts of real estate which would temporarily provide no income between the closure of the gift and the date the property is sold. In a net income arrangement no payments are due to the beneficiary(ies) until the trust is generating income; however, the trust remains intact. j.

Gifts made to establish charitable remainder trusts are credited at fair market value, i.e., the full amount of the assets given, as determined by an independent, expert appraisal. Gift recognition credit is given for the full fair market value.

Unless otherwise agreed to, the Chief Seattle Council may, by action of the Council Investment Committee, retain the following banks: Bank of America or some other appropriate bank or commercial trust manager to perform its responsibilities as trustee.

GUIDELINE 25 - GOVERNING CHARITABLE REMAINDER TRUSTS a.

Like the unitrust, the charitable remainder annuity trust is an income vehicle which irrevocably transfers the remainder interest upon the death of the income beneficiaries (or for a specified term of not more than 20 years) to the Chief Seattle Council. The concept of an annuity trust is simple and straightforward. As its name implies, it pays income beneficiary(ies) a fixed dollar amount annually.

Minimum Funding Level (See above Charitable Remainder Unitrust)

Minimum Age Levels (See above Charitable Remainder Unitrust)

The amount must be specified in the trust instrument as either a dollar figure or a percentage of the initial fair market value of the assets used to fund the trust. This amount may never be less than five percent (5%) of the initial contribution. The higher the rate of return, the lower the value of the remainder interest and the lower the benefit of the charitable income tax deduction. (See above Charitable Remainder Unitrust.) e. As with the unitrust, gifts of cash and appreciated securities are appropriate funding assets. Annuity trusts funded with real estate or other non-liquid assets may be accepted only when the net income from the real estate or other non-liquid assets exceeds the required payout. Gifts made to establish charitable remainder trusts are credited at fair market value, i.e., the full amount of the assets given, as determined by an independent, expert appraisal. Gift recognition credit is given for the full fair market value. f. Unless otherwise agreed, the Chief Seattle Council may, by action of the Council Investment

Committee, retain the following banks: Bank of America or some other appropriate bank or commercial trust manager to perform its responsibilities as trustee. GUIDELINE 26 - GOVERNING CHARITABLE INCOME (LEAD) TRUSTS, a. A charitable lead trust is an arrangement whereby income generating assets may be placed in trust for a designated period of years, after which period the assets transfer to non-charitable beneficiaries named by the donor. The trust is called a "lead" trust because the income interest paid to Chief Seattle Council "leads" or precedes the "remainder" interest paid to the beneficiaries. b. Types of lead trusts: 1. Grantor Lead Trust This is a gift arrangement in which the donor (grantor) transfers income producing assets to a trust, income is paid to a charitable institution over the trust term, and at the end of the term the trust principal returns to the donor. In this case the donor receives an income tax deduction based on the present value of the gift. He/she also pays income tax on the trust income each year. 2. Non-Grantor Lead Trust In this situation, the donor chooses another non-charitable beneficiary (other than him/herself) to receive the assets at the end of the trust term. The donor does not receive an income tax deduction; however, he/she is not liable for income tax on the annual income of the trust. This type of trust is a taxable entity. The donor receives a gift and estate tax deduction for the present value of the gift of future income, c. The minimum amount suggested to establish a charitable lead trust shall be $100,000 and trust terms shall not exceed 20 years unless approved by the Council Board of Directors d. The annual payments of a charitable lead trust must be in one of the following forms: As a unitrust payment, which is a stated percentage of the fair market value of the assets of the trust, determined at least annually. Or, as an annuity payment, which is a fixed dollar amount. Unlike other gift vehicles, there is no required minimum percentage payout. e. Any money or personal property may be used to fund a lead trust. Real property will not be used except in special circumstances approved by the Gift Acceptance Committee. However, income must be produced by that property or its proceeds. Gift recognition credit is given for the fair market value. f. The Chief Seattle Council shall not serve as trustee for a Charitable Income (Lead) Trust or a Revocable Trust, but will refer this type of agreement to an independent banking or trust institution for management. g. If an individual opens an account in trust for the Chief Seattle Council, the individual may retain the right to close the account at any time.

h. Provided trust is irrevocable, the value of the assets of gifts in trust that the Foundation or the donor has chosen to have administered by an independent entity is recorded at the time the trust is established. The income derived from such trusts is treated as similar to or like, but not as endowment income and is not included in annual gift totals. GUIDELINE 27 - IRREVOCABLE TRUSTS An irrevocable trust is a trust which cannot be changed or canceled once it is set up without the consent of the beneficiary. C cannot be taken out of the trust by the grantor. Irrevocable trusts offer tax advantages that revocable trusts don't, for example by enabling a person to give money and assets away even before he/she dies. The Chief Seattle Council will serve as trustee of a irrevocable trust in situations where the Council is the major beneficiary of the trust and the arrangement is beneficial to both the Trustor and the Council. GUIDELINE 28 - GOVERNING POOLED LIFE INCOME AGREEMENTS a. Gifts made to establish Pooled Income funds are credited at fair market value, i.e., the full amount of the assets given, as determined by an independent, expert appraisal. Gift recognition credit is given for the full fair market value. b. No Pooled Life Income Agreement shall be entered into with a donor for a sum less than $5,000. Additional gifts with a minimum of $1,000 annually are permitted. c. The Pooled Life Income Agreement shall not cover more than two lives, and the beneficiaries shall each be 40 years of age or more at the time of the gift. Taxexempt securities shall not be accepted for transfer to any pooled income fund. d. The Chief Seattle Council will not accept any gifts from the BSA Pooled Income Fund without first completing the necessary resolutions and declarations as required by that Fund. GUIDELINE 29 - REVOCABLE TRUSTS, The Chief Seattle Council will serve as trustee of a revocable trust in situations where the Council is the major beneficiary of the trust and the arrangement is beneficial to both the Trustor and the Council. All proposed revocable trusts must be approved by the Council Board of Directors GUIDELINE 30 - LIFE INSURANCE GIFTS a. Gifts of life insurance may be accepted without special approval if the insurance policy is fully paid and in cases where the donor intends for the policy to be cashed in immediately for its cash surrender value. The Chief Seattle Council must be owner (not just beneficiary) of policy. Gift credit will be given equal to annual premiums made by the donor if the Chief Seattle Council owns the policy.

b. Gifts of life insurance with a cash value of at least $10,000 and which are partially paid, or, on which no payments have been made at the time of gift, will be reviewed for acceptance on a case by-case basis by the Gift Acceptance Committee. The donor is expected to make a written pledge to continue paying the premiums on the policy. If no payment is received from the donor within ninety (90) days of the premium payment due date, whole life policies will be cashed in for the cash surrender value and term life policies will be allowed to lapse. c. The value of paid-up life insurance gifts will be recorded and reported at cash surrender value rather than face value of the policy. d. Approval/Acceptance Process 1. The Development Department will prepare a written summary of any proposed gift of a life insurance policy which fails to meet all of the criteria specified above and submit that summary to the Gift Acceptance Committee. At a minimum the summary shall include the following information:� Description of the type of life insurance policy, face value, premium payment schedule, interest rate, age of insured(s), and other relevant policy information, the purpose of the gift (e.g., to fund an endowed chair, a deferred gift, an unrestricted gift) and the department(s), program(s), or endowment(s) to benefit from the gift. 2. The Gift Acceptance Committee will review the material and make a determination as to whether to accept or reject the proposed gift or, if necessary, to impose any terms (e.g., the donor’s written pledge to make contributions to cover premiums, a revision in the payment schedule) as a condition of approval. The Development Department shall communicate the Committee’s decision to the donor in writing, including any conditions imposed prior to acceptance. 3. lf a proposed gift of a life insurance policy is approved, the Development Department will prepare acknowledgement and receipt of the gift on behalf the Chief Seattle Council. 4. The gift will be completed upon the execution and delivery of the life insurance policy to the Chief Seattle Council, or an assignment on behalf of the Chief Seattle Council in the event that the Council is not the original owner of the policy. e. The naming of the Chief Seattle Council as a beneficiary of an insurance program shall imply no obligation on the part of the council. Only in cases where the Council is both beneficiary and irrevocable owner of a whole life insurance policy is the policy recorded as a gift. The cash surrender value of the policy is recorded, rather that its face value, as the amount of the gift. If the donor pays further premiums on the policy, the donor will receive gift credit at full value of the premium. In those cases where the Chief Seattle Council receives the proceeds of an insurance policy in which it was

named beneficiary but not owner, the full amount received is reported as a gift on the date delivered. GUIDELINE 31 – BEQUESTS A bequest is a gift of any amount or form made to the Chief Seattle Council in a donor’s will. Bequests may provide for a specific dollar amount in cash, specific securities, specific articles of tangible personal property, etc. A gift in any amount may be accepted as a contribution to an existing endowment account so long as the terms and conditions of the existing endowment account so permit. Among donors' options are residuary and contingent bequests. A residuary bequest will give the Chief Seattle Council all or a portion of the estate after all debts, taxes, expenses, and all other bequests have been paid. A contingent bequest will ensure that, despite unforeseen circumstances, specified property will pass to the Chief Seattle Council rather than unintended beneficiaries. In order to expedite Estate distributions, provisions in Donor's will or trust agreements should include the statement. “To The Chief Seattle Council, Boy Scouts of America " Donors may also establish, by will, an annuity trust or unitrust. The bequest can be arranged so as to provide a life income for a designated beneficiary by directing that the bequest be used to establish a charitable remainder annuity trust or charitable remainder unitrust. If such a gift is made by will, the principal will pass to Chief Seattle Council only after the death of the life income beneficiary. Gifts may be made through the execution of a new will or addition, or through a codicil to an existing will. Donors may also add either a residual or contingent codicil to their wills. Donors are advised to describe the specific purposes of their gifts as broadly as possible and to avoid detailed limitations and restrictions. Donors considering bequests for a specific purpose are encouraged to consult the Development Department as well as review the sample non-binding Precatory Letter (Appendix II). GUIDELINE 32 - INVESTMENT OF FUNDS AND INTERVAL OF PAYMENTS Unless otherwise donor-specified, the management of funds, securities or property received under trust agreements in which the Chief Seattle Council is the trustee, shall be administered by the Council's Investment Committee in separate accounts for each contract and managed to meet the objectives of each individual trust. GUIDELINE 33 - FINAL DISPOSITION Upon the death of the surviving beneficiary of the planned gift agreement, the agreement shall terminate and the assets and any accruals derived there from shall be paid to the Council for its general purposes or, if restricted by the donor, for specific use as stated in the applicable agreement. It shall be the firm policy of the Chief Seattle Council to direct all gifts received as a result of planned giving, and designated for general purposes to the council's endowment fund for allocation of the earnings as determined by the executive board. It shall be the policy of the Chief Seattle Council to direct all gifts received as a

result of planned giving, and that are donor-restricted, to current restricted funds, land, building and equipment funds, endowment funds, custodian funds, and/or loan and annuity funds, consistent with the donor's restriction. Prepared and approved by:

C. Bradford Allen Council Executive/CEO Chief Seattle Council, Boy Scouts of America

CHIEF SEATTLE COUNCIL AMERICA

BOY SCOUTS OF

APPENDIX I DEVELOPMENT COMMITTEE CHARTER I.

MISSION STATEMENT The mission of the Develop m e n t Com mit t e e of the Board of Director s is to assis t in the form a tion of strat e gi e s and actions to rais e funds for comp a n y oper a tio n s ; cultivat e and nurtur e com m u nit y lead e r s hi p supp ort; and gen e r a t e nee d e d reve n u e s to fullfill the over all mission of the Chief Seat tle Council, Boy Scouts of America. II.

COMMITTEE MEMBERSHIP - The Commit t e e shall be comp o s e d of at leas t 4 me m b e r s of the Board. - The me m b e r s of the com mit t e e shall be appoint e d ann u ally by the Board. III.

COMMITTEE STRUCTURE AND OPERATIONS The Vice Presid e n t of Develop m e n t shall serv e as the chair for the Develop m e n t Com mitt e e . The Com mit t e e shall me e t at leas t two time s a year. The com mit t e e shall mak e regular report s to the Board. The com mit t e e ma y, at its discretion, dele g a t e all or a portion of its duties to subco m m i t t e e s of the Com mitt e e . The Com mitt e e shall work closely and coop er a tiv ely with ma n a g e m e n t in the formula tio n of strat e gi e s and actions that bes t serv e the nee d s of the Council. The Com mitt e e shall mak e available the resourc e s nee d e d to raise funds. Mana g e m e n t shall mak e available reso urc e s and inform a tio n to facilitat e the resp o n sibilities of the Commit t e e . IV.

COMMITTEE GOALS AND RESPONSIBILITIES The following are the goals and res po n sibilities of the com mit t e e :

With the cooperation of management, recruit top-level leadership to raise needed funds through a variety of fund raising efforts.

2. Assist in the development of annual fundraising goals for campaigns on the Council and District level. 3. With ma n a g e m e n t , dev elop long ter m stra t e gi e s to exp a n d funding sourc e s . 4. Provide input and guida n c e into the Council budg e t dev elo p m e n t proc e s s . 5. Creat e struct ur e s in major fund raising eve n t s that pro mo t e chair succ e s sion. 6. Evaluat e annu al perfor m a n c e and propos e chan g e s as nee d e d . 7.

Review and reassess the adequacy of the Charter and recommend any proposed changes to the Board.

CHIEF SEATTLE COUNCIL AMERICA

BOY SCOUTS OF APPENDIX II

Sa m p l e Pre c a t o r y Lett e r Charita bl e Gift Objectiv e s and Oper a tin g Plan By The com m e n t s includ e d herein are me a n t to be an outline of sugg e s tio n s or vision and in no way should be interpr e t e d as conditioning any gifts arising from my est a t e plan. Notwiths t a n di n g anyt hin g stat e d her e, the Chief Seat tl e Council will hav e control over the ass e t s I conve y to the Endow m e n t Fund or any other tes t a m e n t a r y gifts provide d the future For sever al years I hav e carefully consid e r e d ma n y options for my est a t e after my pas sing. My wife and I hav e always end e a v o r e d to ben efit oth er s with our knowled g e abou t life and with financial, housing and employ m e n t assist a n c e . In keepin g with this tradition, my desire is to provid e continuing resourc e s in perp e t uit y to older youth in our com m u ni t y for char a c t e r dev elo p m e n t , educ a tio n and to provid e opport u nitie s for learnin g in the natur al scienc e s . My pers o n al exp erie n c e with the Boy Scout s of America, specifically the Chief Seat tl e Council, has led me to conclud e that I would like cert ain pres e n t gifts as well as all of my test a m e n t a r y contribution s to go to progr a m s and scholars hip s within this local Boy Scout Council. The purpos e of this writing is to outline my vision and how it

may be achiev e d : I. Cam p Sch o l a r s h i p s Going to Scout Camp as a youth was one of the mos t import a n t time s for me and my dev elo p m e n t into adultho o d . Ideally I would like my gift to provid e five (5) to ten (10) ca mp e r s hi p s per year (up to 905 of the cost for each boy) to the ca mp s with the Council. My desire is to provid e the sa m e cam pin g exp erie n c e and opport u nity I had to scout s who otherwis e might not be able to go. I believ e that eac h recipien t should pay at leas t 10% of the cost. II. Cam p Pig o t t I would like part of my gift to be allocat e d to the Natur e Area at Camp Pigott. Thes e funds could be used for progr a m helps, displays and ma t e ri als to enh a n c e the learning exp erie n c e for boys earnin g merit bad g e s and earnin g rank adv a n c e m e n t in this are a. The Council may consid er a larg er alloca tion for capital improv e m e n t if nec e s s a r y to enh a n c e this progr a m are a. III. Su m m a r y I hav e prep a r e d this outline to assist thos e who will be involve d in futur e years with the imple m e n t a t i o n of our philant hr o pic inten t. It has bee n prep a r e d in order to conv e y the spirit of thes e gifts and their me a nin g for futur e gen e r a tio n s . That is, to help the Boy Scouts continu e to do good things in our com m u ni t y and help dev elop good citizens and futur e lead e r s . Knowing that __________________ and my

assist a n c e will help with that is recog nition enou g h . It is a privileg e to be a part of the s e end e a v o r s and to provide the me a n s to ben efit yet unn a m e d and unknow n yout h in our com m u ni t y for gen e r a tio n s to come .

___________________________________ ____________________________ Date

___________________________________ _____________________________ Witne s s e d by

Date

Chief Seattle Council APPENDIX III

POLICY ON NAMING COUNCIL PROPERTIES, PROGRAMS, SCHOLARSHIPS, AND FACILITIES The Chief Seattle Council has a long-standing tradition of naming council properties, programs, scholarships, and facilities in honor of persons or entities that have made important contributions Council. All naming in recognition of an honoree must be consistent with the Scout Law. Accordingly, all proposed naming opportunities shall be reviewed by the Council and approved in accordance with this policy, and with related policies and guidelines. Guidelines for Naming Council Properties, Programs, Scholarships, and Facilities I.

No commitment regarding naming shall be made to a donor or a non-donor honoree prior to approval of the related proposal for naming. Each proposal shall be made in writing in accordance with these guidelines. The proposal and record of the action taken shall be maintained in the permanent archives of the Council.

II.

Each proposal for naming shall be considered on its merits and not because a gift meets a particular predetermined goal. In this regard, all due attention shall be given to both the long-term and short-term appropriateness of a naming.

III.

A proposal for naming shall include a thorough analysis of the proposal in relation to naming policy and guidelines and review by the Council Board. The approval of the name shall be recorded in the Council Board minutes.

IV.

When a facility, program or scholarship is named in recognition of a donor or a non-donor honoree, that name will generally be effective for the useful life of the facility or the designated use of the program or scholarship. If a facility must be replaced or substantially renovated, or the use re-designated, it may be named for a new donor. Where appropriate and possible, the previous name will be memorialized, in a fashion that pays proper tribute to previous donor(s).

In any proposal for naming a program or scholarship in recognition of a donor or a non-donor honoree, consideration should be given to ensure that any associated endowment will be sufficient to sustain the program, since the naming shall being effect for the life of the program.

VI.

When the proposed naming of a facility would recognize an individual, the

Council requires the complete name of the individual be used. The last name of the individual so honored may be used in referring informally to the facility and may be used on the name plaque affixed to the facility. VII.

When naming due to monetary gifts the following shall be considered. a. the urgency of need for the project or for support funds for the project b. the eminence, reputation and integrity of the individual or entity whose name is proposed; and c. the relationship of the individual or entity to the Council. d. the gift shall constitute a significant portion of the total cost of the project to be named. The gift shall either: (1) fund the total cost of the project to be named; or (2) provide substantial funding for that portion of the total cost which would not have been available from another source. VIII. To avoid any appearance of commercial influence or conflict of interest, additional due diligence should be taken before recommending the naming of a major program or area, building, open space, or roadway that involves the name of a corporation or a corporate foundation. The naming for an individual associated with a corporation should be handled as any naming for an individual. IX.

Corporate names may be used to designate individual rooms or suites of rooms, as well as endowed programs or scholarships. Plaques in public spaces within buildings may recognize the contributions of corporations. The size, design, and wording of plaques and other signs that acknowledge corporate generosity and express Council appreciation should be modest in size and exclude logos to avoid the appearance of advertising.

A naming conferred in recognition of a pledge is contingent on fulfillment of that pledge and will be approved on that condition.

IX.

A proposal to rename a facility or area or to add a second name shall adhere to the criteria outlined above. In addition, these principles shall be followed: a. Any proposal to rename a facility or area or to add a second name in recognition of a gift shall be reviewed by the Council The review shall include any gift documents pertaining to the original gift and related naming, as well as the gift documents pertaining to the subsequent gift and proposed renaming. b. When a facility that has been named in recognition of a gift or an individual has reached the end of its useful life and will be replaced or substantially renovated, the replaced or renovated structure may be renamed in recognition of another gift. c. When an area named in recognition of a gift or in honor of an individual will be developed for another use, the new facilities may be named in recognition of new gifts. d. Appropriate recognition of earlier donors and honorees shall be included in or adjacent to new and renovated facilities, as well as in

redeveloped areas. e.. When a facility or area is proposed for renaming, representatives of the Council will make all reasonable efforts to inform in advance the original donors or honorees and their immediate family members. X.

If it is determined by the Council Board that the honoree has not adhered to the Scout Oath and Law, the Council reserves the right to revoke the naming privileges forthwith.

APPENDIX IV

Chief Seattle Council SAMPLE DOCUMENT MEMORANDUM OF UNDERSTANDING DONOR and Chief Seattle Council, Boy Scouts of America Made this _____ day of ____________, _____ between and (the “Donors”), residing at and the Chief Seattle Council (“CSC”), a Washington nonprofit corporation, with its principal offices at 3120 Rainier Ave S, Seattle, WA 98144. 1. The Donors have made, and the CSC has accepted, a complete and irrevocable charitable gift of described on attached Exhibit A, to be held and administered by CSC under the following terms and conditions. 2. A fund will be established on the books of CSC to be known as THE ROBERT AND MARY JOHNSON CHARITABLE FUND (the “Fund”). 3. The Fund will include the gift made on Exhibit A, such other property as may be transferred to CSC by the Donors, and the survivor of them, for inclusion in the Fund, such property as from time to time may be received by CSC from any other source and accepted by it for inclusion in the Fund, and all income and other proceeds of the Fund. 4. The Fund will be the property of CSC and will be held by it in its corporate capacity; it will not be deemed a trust fund held by CSC in a fiduciary capacity; and it may be commingled with other funds held by CSC for similar purposes. CSC in its corporate capacity will have ultimate authority and control over all property in the Fund, including any income earned by the Fund. 5. The Fund may be used only for charitable, religious or educational purposes (or any combination of such purposes). Minimum annual distributions from the Fund shall be at least FIVE PERCENT (5.0%) of the Fund’s average net assets on a five-year rolling basis (net assets shall be determined at the end of each calendar year). A minimum of TEN PERCENT (10.0%) of each dollar of principal and income withdrawn from the Fund may be used directly by CSC in its own programs and up to NINETY PERCENT (90.0%) may be used for the support of other charitable organizations, provided that all such funds shall be used exclusively for charitable purposes within the meaning of Section 170(c)(1) or (2)(B) of the Internal Revenue Code (the “Code”) as determined by CSC, provided that such purposes are not inconsistent with those of CSC.

6. Investment advisory fees arising from management of the Fund investments shall be charged to the Fund.

SAMPLE DOCUMENT 7. The Board of Directors of CSC shall designate distributions from the Fund of principal and income within the limitations provided for in Paragraph 5 above and according to the Donor Advised Fund Distribution Guidelines set forth on the attached Exhibit B. The Board of Directors will consider several criteria in determining the amount and timing of such distributions, with special weight given to donor advisory requests. Other criteria include recommendations from the Board and independent investigation by CSC staff evaluating the donor advisory requests to ensure that they are consistent with the needs and programs most deserving of support by CSC. Suggestions for distribution may be made by the Donors, and the survivor of them, from time to time, in writing (email or facsimile is acceptable). It is agreed and understood that (a) the final discretion as to the use of the Fund principal and income shall be that of the CSC Board of Directors; and (b) any assets remaining in the Fund at the death of the survivor of the Donors may be withdrawn in the sole discretion of CSC and used for its general purposes. 8. It is intended that the Fund be an integral part of CSC and not a separate trust. Nothing in this Memorandum of Understanding shall affect the status of CSC as an organization described in Section 501(c)(3) of the Code. It is the express intention of CSC that the Fund be organized and operated to comply with Section 1.170A-9(e)(10-13) of the Treasury Regulations. 9)Naming of any Council properties or entities will be subject to the Council’s Naming Policy. This Memorandum shall be interpreted accordingly and so as to conform to the requirements of federal tax law and any regulations issued pursuant thereto. CSC is authorized to amend this Memorandum to conform to the provisions of any applicable law or government regulation in order to carry out the foregoing intention. IN WITNESS WHEREOF, the Donors and CSC have executed this Memorandum this ____ day of ____________, _____. DONORS: ___________________________________ ___________________________________ CSC: By: ________________________________ Name: _____________________________ Title: ______________________________

SAMPLE DOCUMENT

EXHIBIT A The Robert and Mary Johnson Charitable Fund Memorandum of Understanding dated _______________ ___, _____ between Robert and Mary Johnson and CSC Inc. Schedule of Assets Item No. Property Description 1. 2. 3. 4. 5. Receipt of the above described assets is hereby acknowledged this ____ day of _______________, _____. CSC By: ___________________________________ Name: _______________________________

Title: _________________________________

SAMPLE DOCUMENT

EXHIBIT B Donor Advised Fund Distribution Guidelines CSC established its Donor Advised Fund program for the purpose of facilitating charitable giving by its donors. CSC’s Donor Advised Fund is an optimal tool for those wishing to engage in significant philanthropy, without the administrative and regulatory requirements of charitable vehicles such as private family foundations. In return for making an irrevocable charitable gift into CSC’s Donor Advised Fund, donors retain the right to advise CSC as to the distribution of those funds. In reviewing donor advisory requests, CSC operates from a holistic Christian commitment to enhance the lives of families and communities locally, nationally, and internationally. This broad charitable mission permits donors to suggest distributions to a wide range of charitable organizations and purposes throughout the world. CSC will also provide donors with information about a variety of funding opportunities in the communities it serves. These distribution recommendations shall be communicated on a regular basis as an informational service to Donor Advised Fund donors by CSC. CSC shall give each donor advisory request full respect and consideration, and involvement by donors in the distribution review process is both welcomed and encouraged. In approving donor requests, CSC will consider several criteria, including recommendations by CSC’s Board of Directors and independent investigation by CSC staff. Upon receiving a donor distribution request, CSC will determine whether the organization has been previously approved by CSC for funding. If it has not been previously approved, CSC will research the organization, including its charitable purpose, activities, and legal and financial status. Distribution requests to bona fide charitable organizations and purposes will generally be approved, unless those requests are contrary to the Christian ethos and core values of CSC. CSC’s Christian ethos is centered in our work with the poor and oppressed to promote human transformation, seek justice, and bear witness to the good news of the Kingdom of God. CSC’s core values include that we are Christian, we are committed to the poor, we value people, we are stewards, we are partners, and we are responsive.

SAMPLE DOCUMENT Examples of charitable organizations and activities that CSC would consider contrary to its Christian ethos and core values include: (a) organizations that do not adhere to legal and ethical standards regarding fund raising operations and practices; (b) organizations that do not practice responsible stewardship of resources; (c) organizations and activities that intentionally propagate or proselytize for a non-Christian faith or degrade the Christian religion; (d) organizations that undermine the value of God’s creation, including persons, communities, and nature; and (e) organizations whose activities would engender undue controversy and divisiveness within CSC’s donor community. If there is a question as to whether the organization meets CSC’s guidelines for funding, a Donor Advised Fund Review Committee composed of CSC senior management will review the request. The Committee will consider both the donor’s advice as well as recommendations by appropriate CSC personnel. Following this review, the Committee will make a final determination regarding

funding approval. When a donor request is approved, CSC will make a distribution to the charity designated by the donor, either in the name of the donor’s fund or anonymously according to the donor’s wishes. Distributions will be processed twice per month, on the fifteenth (15 th) and last working days of each month, and requests must be received no later than three (3) working days prior to each distribution date to allow time for processing. Requests that have not been approved by that date will be processed for the following distribution date. There is a minimum distribution amount of $250.00 per charity. Checks will be made payable to the legal name of the charity, which may be different from the common name. Donors will receive quarterly reports detailing distributions from their Donor Advised Funds, as well as the current balance and overall investment performance of their funds. CSC has experienced great success in helping donors achieve their philanthropic objectives through its Donor Advised Fund program. Donors coming from diverse backgrounds, communities, and faiths have expressed great satisfaction with what they have been able to accomplish through their CSC Donor Advised Funds. We look forward to assisting you, the donor, in fulfilling your charitable mission through establishing a Donor Advised Fund with

CHIEF SEATTLE COUNCIL

BOY SCOUTS OF AMERICA

APPENDIX V The John Doe Endowed Purpose Fund ESTABLISHMENT OF ENDOWED FUND There is hereby established with the Chief Seattle Council, Boy Scouts of America, the Purpose Fund. BACKGROUND This new endowed fund is made possible through the generous support ….. PROCEDURES The Chief Seattle Council shall establish an account number in the name of the fund hereunder, which shall be known as the Named Fund. Any and all contributions designated for this fund shall be credited to the aforesaid number. All such contributions shall be administered in the manner set forth herein, and fund disbursements shall be made in accordance with the provisions specified in this document. The Executive Board of the Chief Seattle Council, or its designee, has and shall have full and plenary power and authority to take, hold, manage, invest, and reinvest any principal hereunder, and any increase or accumulation to it, and any income from it, consistent with management policies of the Executive Board, or its designee. The fund will earn income according to board policy if it maintains the minimum balance required for earning interest income. Any and all gifts and contributions received for credit, together with the income generated by this fund, shall be held until the fund reaches $25,000. At that time, the income shall be disbursed for the uses and purposes stated herein. If the fund fails to reach $25,000 within five years of the establishment of this document, all remaining dollars will revert to the general endowment fund of the Chief Seattle Council. USES AND PURPOSES The proceeds from the endowment fund are to be used to provide camp maintenance support to_____________________. The uses and expenditures of this fund shall be consistent with Chief Seattle Council policies. This fund shall be administered by the Scout Executive or his designee(s). Any program or project supported hereunder must be consistent with the tax deductible status of gifts made to the Chief Seattle Council, Boy Scouts of America.

DISBURSEMENT OF FUNDS Payout of income from the endowment fund shall be made through the Chief Seattle Council payment

procedures existing at the time of such payment. CHANGE OF CONDITIONS If, at some future date, circumstances within the Chief Seattle Council should change so that the uses and purposes for which this fund has been established are no longer existent and/or are in conflict with policies of the council, then the fund income and principal may be used in a manner which is in the best interests of the Chief Seattle Council, bearing in mind the wishes of the donor(s) set forth herein. In this unlikely event, every effort shall be made by the Council to contact the donor(s) prior to any change in fund disbursement.

________________________________________, dated this _____ day of __________, 20__ ________________________________________, dated this _____ day of __________, 20__ ________________________________________, dated this _____ day of __________, 20__ Scout Executive Chief Seattle Council, Boy Scouts of America ________________________________________, dated this _____ day of __________, 20__ Chairman of the Board Chief Seattle Council, Boy Scouts of America

tmp tN_QiC

CHIEF SEATTLE COUNCIL

BOY SCOUTS OF AMERICA

APPENDIX VI CONFLICT OF INTEREST AGREEMENT FOR PROFESSIONAL ADVISORS b.All prospective donors shall be advised to seek their own counsel in matters relating to deferred gifts, major gifts, tax and estate planning. b. The Chief Seattle Council shall seek counsel in all matters pertaining to its major gifts program and shall execute no planned giving agreement without the advice of legal counsel, unless an unmodified pre-approved standard agreement is used. c. All agreements in which the Chief Seattle Council is the trustee shall follow the format of the specimen agreements approved by legal counsel for the council. h.The Chief Seattle Council will not pay “finders fees” or commissions to an advisor bringing or referring a gift. i.The Chief Seattle Council may give verbal/public recognition to advisors in association with the donor and their gift. If a donor wishes anonymity, every effort will be made to comply with donors wishes and the advisor may be recognized in association with an anonymous gift. j.The Chief Seattle Council may periodically conduct seminars that include professional advisors for informational and prospective donor cultivation purposes. If a prospective donor decides to seek the advice of a presenter for a gift to the Council, the Council understands that the advisors are working in the interest of their clients. Inappropriate influence as to the direction and amount of the gift as well as any possible perceived conflict of interest is discouraged. k.A conflict of interest statement (Appendix II) that restates the above provisions of this guideline may be signed by advisors who have a relationship with the Council and are working with a donor with regard to a gift to the Council. I understand and have read the above statement and agree to operate in conjunction with the Council’s guidelines regarding use of professional advisors. Signed:

tmp tN_QiC

Date:

CHIEF SEATTLE COUNCIL

BOY SCOUTS OF AMERICA

APPENDIX VI CONFLICT OF INTEREST AGREEMENT FOR PROFESSIONAL ADVISORS c.All prospective donors shall be advised to seek their own counsel in matters relating to deferred gifts, major gifts, tax and estate planning. b. The Chief Seattle Council shall seek counsel in all matters pertaining to its major gifts program and shall execute no planned giving agreement without the advice of legal counsel, unless an unmodified pre-approved standard agreement is used. c. All agreements in which the Chief Seattle Council is the trustee shall follow the format of the specimen agreements approved by legal counsel for the council. l.The Chief Seattle Council will not pay “finders fees” or commissions to an advisor bringing or referring a gift. m.The Chief Seattle Council may give verbal/public recognition to advisors in association with the donor and their gift. If a donor wishes anonymity, every effort will be made to comply with donors wishes and the advisor may be recognized in association with an anonymous gift. n.The Chief Seattle Council may periodically conduct seminars that include professional advisors for informational and prospective donor cultivation purposes. If a prospective donor decides to seek the advice of a presenter for a gift to the Council, the Council understands that the advisors are working in the interest of their clients. Inappropriate influence as to the direction and amount of the gift as well as any possible perceived conflict of interest is discouraged. o.A conflict of interest statement (Appendix II) that restates the above provisions of this guideline may be signed by advisors who have a relationship with the Council and are working with a donor with regard to a gift to the Council. I understand and have read the above statement and agree to operate in conjunction with the Council’s guidelines regarding use of professional advisors. Signed:

tmp tN_QiC

Date: