THE FOLLOWING TWO DOCUMENTS ARE EXAMPLES OF ENDOWED SCHOLARSHIP DONOR AGREEMENTS-AN OUTRIGHT GIFT OR A PLANNED GIFT. BY WORKING DIRECTLY WITH THE HOLSTON FOUNDATION STAFF A CUSTOMIZED AGREEMENT IS ESTABLISHED AND FOLLOWED IN PERPETUITY. PLEASE CONTACT THE HOLSTON CONFERENCE FOUNDATION FOR MORE INFORMATION AND TO DISCUSS YOUR INTENTIONS.

P.O. Box 900 Alcoa, TN 37701 865-690-8124 www.foundation.holston.org www.holstonlegacy.org Roger Redding, Executive Director [email protected] Paul Bowman, Director of Gift Planning [email protected]

OUTRIGHT GIFT

Each Agreement is customized to fit the Donor’s desires as to the name, use, and stewardship of the Fund created. Foundation staff will gladly review options and ideas for each customized agreement.

SCHOLARSHIPS

THE __________________ SCHOLARSHIP ENDOWMENT AGREEMENT AT THE HOLSTON CONFERENCE OF THE UNITED METHODIST CHURCH FOUNDATION, INC.

This Agreement is made this ____ day of ____________, 2015 by _____________________ (Donor’s Name), _____________________________________ (City, State), hereinafter referred to as the Donors and the Holston Conference of the United Methodist Church Foundation, Inc., a non-profit 501(c)3 Corporation and hereinafter referred to as the Foundation.

WITNESSETH: The Donors in their desire to continue the spirit of thanksgiving and stewardship they lived by hereby establish this permanent endowment fund to strengthen, foster, and support the Church. The Donors’ intent is to fund this endowment through ($Gift, Trust, etc.), but reserve the right to add other gifts both outright and through their estate. It is also the Donors’ intent to have the Fund open to gifts from family, churches, and other interested friends. These gifts will be added to the Fund and subject to the conditions and provisions of this Agreement.

BACKGROUND (This portion is written with the help of the Donor/Donor Family to illustrate the story of the gift…why it was given, etc. It is important for the recipients to know that they are receiving support from an individual or family that believed in the ministry of the Church and created to give back something to help others. This section may be as long or short as deemed appropriate by the Donor).

__________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________.

ADMINISTRATION GUIDELINES With the establishment of this Agreement, the Donors have made a commitment to fund a permanent scholarship endowment fund with the Foundation. If for any reason, the Fund shall fail to reach the minimum endowment level of $25,000 within ten years of the original gift and there are no prospects of meeting the endowment minimum, any assets of this Fund may be depleted for the Fund’s stated purpose over a five-year period.

The Foundation shall have the authority and discretion to invest and reinvest said funds (with any other funds owned or held by it absolutely or in its fiduciary capacity) in undivided interests and obligations or separately or in whole interest or in any other manner, the choice of such investments to be determined by the Foundation at its discretion. The Foundation shall be entitled to charge a reasonable fee for services rendered under this Agreement in accordance with its fee schedule. Annual distributions from the Fund will be made by the Foundation based on a total return concept, which will take into consideration income and both realized and unrealized capital gains in determining the amount of money available for distribution per terms of this Agreement. The Foundation’s goal will be to maximize distributions, while protecting the spending power of the Fund from inflation and enhancing the continued growth of the Fund. It is anticipated that distributions will be in the 0%-5% range of a rolling three-year average market value of the Fund, but the actual distribution will be determined in accordance with the Foundation’s policies at that time. Studies suggest that a 4% of a rolling three-year average will keep the real spending power of an endowment from decreasing due to inflation. Until the fund surpasses the endowment minimum, all earnings will be retained and added to the principal. No distribution will be made if the fund drops below its historic dollar value until it recovers above that amount. SELECTION AND USE (This section reflects options and priorities for the students and the selection process as determined by the donor)

It is the Donors’ desire that the priority for annual distributions from this fund provide scholarships to (United Methodist) students with priority given to students enrolled or approved to attend (a Holston Conference affiliated United Methodist college, approved seminary or other institutions specified by the donor(s). (Criteria for applicants can be members of a specific church or live in a district, state, or area, etc. or meet other allowable donor preferences). The Foundation’s Grant Committee (or another named committee) will put into place a selection process. If for any reason the awards are not made, the Foundation’s board will assume responsibility to put in place a new selection process. STEWARDSHIP The Foundation will make annual reports of the Fund’s financial performance available to the Donors (and any other named body, such as a church). If at any time in the future the need does not exist for this fund as described in this Agreement or should this Agreement conflict with any state, federal, or local laws, statutes, regulations, or ordinances, the governing body of the Foundation shall have the authority to select an appropriate use for this fund that closely approximates the original intent of the Donor. In WITNESS WHEREOF, the Donors and The Holston Conference of the United Methodist Church Foundation, Inc. have caused to be subscribed and affixed their name and the Foundation’s seal to this Agreement this __________ day of __________________2015.

THE DONOR(S)

BY: ____________________________________

_________________________________

THE HOLSTON CONFERENCE OF THE UNITED METHODIST CHURCH FOUNDATION, INC.

BY: _____________________________________

PLANNED GIFT/BEQUEST SCHOLARSHIPS

Each Agreement is customized to fit the Donor’s desires as to the name, use, and stewardship of the Fund created. Foundation staff will gladly review options and ideas for each customized agreement.

THE __________________ SCHOLARSHIP ENDOWMENT AGREEMENT AT THE HOLSTON CONFERENCE OF THE UNITED METHODIST CHURCH FOUNDATION, INC.

This Agreement is made this ____ day of ____________, 2015 by _____________________ (Donor’s Name), _____________________________________ (City, State), hereinafter referred to as the Donors and the Holston Conference of the United Methodist Church Foundation, Inc., a non-profit 501(c)3 Corporation and hereinafter referred to as the Foundation. WITNESSETH: The Donors in their desire to continue the spirit of thanksgiving and stewardship they lived by hereby establish this permanent endowment to strengthen, foster, and support the church. The Donors are establishing this endowment to receive a bequest through their will (or other estate plan), but reserve the right to add other gifts both outright and deferred. It is also the Donors’ intent to have the Fund open to gifts from family, church members, and other interested friends. These gifts will be added to the Fund and subject to the conditions and provisions of this Agreement.

BACKGROUND (This portion is written with the help of the Donor/Donor Family to illustrate the story of the gift…why it was given, etc. It is important for the recipients to know that they are receiving support from an individual or family that believed in the ministry of the Church.)

__________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ _________________________________________________________________________________.

ADMINISTRATION GUIDELINES With the establishment of this Agreement, the Donors have made a commitment to fund a permanent endowment fund with the Foundation. If for any reason, the Fund shall fail to reach the minimum endowment level of $25,000 within two years after the Donor’s demise and there are no prospects of

meeting the endowment minimum, any assets of this Fund may be depleted for the Fund’s stated purpose. The Foundation shall have the authority and discretion to invest and reinvest said funds (with any other funds owned or held by it absolutely or in its fiduciary capacity) in undivided interests and obligations or separately or in whole interest or in any other manner, the choice of such investments to be determined by the Foundation at its discretion. The Foundation shall be entitled to charge a reasonable fee for services rendered under this Agreement in accordance with its fee schedule. Annual distribution from the Fund will be made by the Foundation based on a total return concept, which will take into consideration income and both realized and unrealized capital gains in determining the amount of money available for distribution per terms of this Agreement. The Foundation’s goal will be to maximize distributions, while protecting the spending power of the Fund from inflation and enhancing the continued growth of the Fund. It is anticipated that distributions will be in the 0%-5% rolling three-year market value of the Fund, but the actual distribution will be determined in accordance with the Foundation’s policies at that time. Studies suggest that a 4% of a rolling three-year average will keep the real spending power of an endowment from decreasing due to inflation. Until the fund surpasses the endowment minimum, any and all earning will be retained and added to the principal. No distributions will be made if the fund drops below its historic dollar value until it recovers above that amount. SELECTION AND USE (This section reflects options and priorities for the students and the selection process as determined by the donor)

It is the Donors’ desire that the priority for annual distributions from this fund provide scholarships to (United Methodist) students with priority given to students enrolled or approved to attend (a Holston Conference affiliated United Methodist college, approved seminary or other institutions specified by the donor(s). (Criteria for applicants can be members of a specific church or live in a district, state, or area, etc. or meet other allowable donor preferences). The Foundation’s Grant Committee (or another named committee) will put into place a selection process. If for any reason the awards are not made, the Foundation’s board will assume responsibility to put in place a new selection process. STEWARDSHIP The Foundation will make annual reports of the Fund’s financial performance available to the Donors (and any other named body, such as a church). If at any time in the future the need does not exist for this fund as described in this Agreement or should this Agreement conflict with any state, federal, or local laws, statutes, regulations, or ordinances, the governing body of the Foundation shall have the authority to select an appropriate use for this fund that closely approximates the original intent of the Donor. In WITNESS WHEREOF, the Donors and The Holston Conference of the United Methodist Church Foundation, Inc. have caused to be subscribed and affixed their name and the Foundation’s seal to this Agreement this __________ day of __________________2015. THE DONOR(S)

BY: ____________________________________

_________________________________

THE HOLSTON CONFERENCE OF THE UNITED METHODIST CHURCH FOUNDATION, INC.

BY: _____________________________________