The United Board for Christian Higher Education in Asia is pleased to accept contributions designated for the United Board’s endowment. The United Board’s endowment and permanent endowments set up for specific purposes are invested in a pooled account to support the United Board in perpetuity at a spending rate as approved by the Trustees. Endowments ensure the ongoing support of United Board programs through downturns in the economy, governmental budget cuts and fluctuations in the political climate.
The United Board welcomes two types of permanent endowments:
- named permanent endowments for unrestricted purpose
- named permanent endowments for restricted/designated purpose
The United Board also welcomes term endowments (also known as “wasting endowments”). These are invested more conservatively depending on their duration and may be part of a separate investment pool.
Restricted and unrestricted named permanent endowments may be established with a minimum contribution of $100,000. In the event that the donor(s) cannot raise the full amount at one time, the United Board permits the donor(s) to raise the $100,000 over a period of up to two years from the close of the fiscal year in which the first contribution is received. Donors who wish to contribute less than the minimum $100,000 contribution or those who wish to contribute anonymously are invited to contribute to the United Board’s pooled unrestricted permanent endowment. Proceeds from the unrestricted permanent endowment enable the United Board to grow from strength to strength.
For permanent endowments for a restricted purpose, after the close of the fiscal year following the year when the $100,000 threshold is reached, the United Board will start disbursing the proceeds from the established endowment to the recipient institution as an endowment grant in accordance with the United Board’s endowment investment and spending policy. A note will be included stating the terms of the endowment grant and the name of the donor(s). Please contact us for the United Board’s endowment investment and spending policy.
Term endowments allow greater annual support that comes from the income and part of the principal on an agreed spending rate. Term endowments are limited to a fixed term, but generally offer a term that would last from 7 to 15 years, depending on the spending rate on the principal.
Staff of the United Board will work with the donor(s) to establish terms for the endowment (see Sample Permanent Endowment Terms).
These terms ensure that the United Board will be able to disburse the annual distribution in compliance with the United Board’s spending policy, unless, in the unlikely event (for example) that the named college or institution ceases to exist, or if United States law prohibits the United Board from doing business in the country named in the endowment terms.
Once the terms for the endowment are agreed to in writing by the donor(s) and approved by the board of trustees, in order to comply with IRS regulations regarding tax deductibility of charitable gifts, the donor(s) may not change or modify the terms of the endowment gift. Considerable care should be taken when drafting endowment terms to be sure that the donor(s) fully understands and agrees with the terms as written.
Proposed terms signed by the donor(s) must accompany the initial gift for the endowment. If signed terms do not accompany the gift, terms must be received, in writing, no later than one month following receipt of the gift. Any gifts designated for endowment for which the United Board has not received acceptable terms (i.e. terms in accordance with this policy and the bylaws of the United Board) will be returned to the donor as soon as possible but no later than the close of the fiscal year.