A: The endowment was established to provide support to The Arc over the long term. Endowment funds, primar= ily the income from invested principal, are expected to be used for projects and programs designed to augment and foster the Agency’s strategic needs. Appropriate uses of in= come disbursed from The Arc of Sedgwick County Endowment Fund are outlined in its Policies and Guidelines. Also, specific areas of emphasis are selected each year by The Arc’s Endowment Committee for programs that have been identified as having particular relevance or importance for current communi= ty needs. Those areas are enumer= ated in the Request for Proposals, or RFP.

Several programs identified as priorities for funding = were cited in The Arc’s 2003 matching grant proposal that was submitted to= the Wichita Community Foundation (WCF). Here, The Arc committed to pursuing the following goals if it were t= he recipient of matching funding:

Commitment to long-term planning, with an annual strategic planning retreat for t= he Board of Directors.
Annual needs assessment surveys of clients and community.
Data base of clients to identify long-range trends.
Job support for employable clients.
Support for families, as caregiving passes from elderly parents to siblings or= the community.
Legal and estate planning for clients and their families.<= /li>
Website development to inform the community of Arc services.=
Program evaluation to determine efficiency and effectiveness of current progra= ms.
Planned giving campaign to develop additional funding resources.
Supplemental funding for existing programs, in case of funding cuts or economic downturn.
Greater community awareness and partnerships with other agencies.

According to Arc guidelines, endowment income can also= be used to fund projects that are recommended as “Areas of Emphasis̶= 1; in the current year’s RFP, and can include new programs recommended as the outcome of The Arc’s most recent strategic planning process or any project documented in recent surveys of community needs. [Back]=

2. How much income= does The Arc receive each year from the endowment?

A: The a= mount of the annual disbursement is governed by policies of the Wichita Community Foundation. The current disbursement is calculated as five percent of a three-year moving average of the endowment fund’s market values, determined one year before the fi= scal year in which funds are to be distributed. In March 2006, The Arc receiv= ed a disbursement of approximately $15,000 from the endowment. The Wichita Community Foundation h= as informed us that in March 2007, we will receive a disbursement of approxima= tely $17,000. [Back]=

3. Can the endowme= nt principal be used?

A: No. Although some agencies set up endo= wments at the WCF in order for the non-profit organization to use the principal, T= he Arc’s endowment fund is different.&n= bsp; As of this date, WCF has given The Arc two matching grants to help b= uild its endowment. As a restricti= on on these gifts, The Arc has agreed with the WCF to expend no more than five percent of the corpus each year, as described in the above question. The implication of this poli= cy is that The Arc effectively uses only earnings from the endowment, not princip= al. The Arc has adopted its own polici= es to enforce this policy by stating that only disbursements from accumulated earnings may be disbursed from the endowment.

In the event of an emergency, the WCF has indicated th= at The Arc would be able to make an appeal to the WCF board for additional funding. [Back]=

4. Who decides how= the income from the endowment is to be spent?&= nbsp;

A: The Arc’s Board of Directors has final authority over how income from the endowment is spent. The Arc&#= 8217;s Allocation Committee reviews all submitted proposals and selects those proposals that are eligible for funding under current policies and areas of emphasis. The Allocation Comm= ittee makes recommendations to the Board of Directors for those proposals to rece= ive funding. The RFP and policies/guidelines are also approved by the Arc Board of Directors. [Back]=

5. Are all eligible disbursements required to be spent each year?

A: No. The Allocation Committee can recom= mend that some or all disbursements be reinvested in the endowment corpus. [Back]

6. Will all submit= ted proposals be funded?

A: No. Funds available from the endowment= are extremely limited, especially in these early years of the endowment. The published guidelines were sele= cted to provide focus for those areas most in need of supplemental funding at th= is time. Not all requests will be successful, depending on the number and natu= re of funding requests received for review.

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7. What is the cur= rent rate of return earned by WCF investments?&= nbsp; What is the portfolio composition?&= nbsp; What is the current WCF management fee schedule?

A: See (http://www.wichita= cf.org/new/financialinfo.html). [Back]=

8. Does The Arc have any control over= the portfolio composition?

A: Not a= t this time. Portfolio decisions are= made by WCF investment counselors. In the future, organizations holding funds with WCF may be able to select the = risk of their investments. [Back]=

9. When did the endowment start?

A: In 20= 02, the endowment started with a bequest of approximately $60,000 from the estate of Isabelle Winter, mother of Arc client Jeff Winter. The Arc’s award of a matching grant from the Wichita Community Foundation was announced in December 2003.= Legacy of Hope fundraising events started in 2004. The annual endowment events subsequently developed to support the Arc’s long-term goals and plans include the Ladies Luncheon, the Legacy of Hope Golf Tournament, and the Fourth of July Car Show, all of which began in 2004. An annual fundraising event at Avi= vo Brick Oven Pizzaria began in 2005. <= /span>[Back]=

10. Does the endowment take funding aw= ay from other Arc programs?

A: No. The endowment committee was formed= after accepting the Winter bequest, with the agreement that the endowment should = be built as much as possible by donations outside of The Arc’s tradition= al donation program. Endow= ment events, such as the annual Ladies Luncheon, were developed and are used to create public awareness of The Arc as much as they are used as fundraising events.

Arc family members who wish to participate in the annu= al Legacy of Hope Golf Tournament are encouraged to attend and pay the tournament ent= ry fee. Arc families are also in= vited to attend the annual Fourth of July Car Show and pay the admission fee, or enter their cars by paying the entry fee.&= nbsp; Due to space constraints, The Arc Ladies Luncheon focuses attendance almost exclusively on women who are not already familiar with The Arc or its programs.

The Legacy of Hope endowment also accepts direct contributions from individuals who wish to support the Arc’s long-term strategic mission with this type of restricted donation. [Back]=

11. Is an endowment the same as a foun= dation?

A: No. A foundation is a separate legal e= ntity, governed by its own Board of Directors.&nb= sp; The Arc endowment is a financial account controlled by the Arc’= ;s Board of Directors from which it receives an annual disbursement. This is the same Board that overse= es all Arc activities and provides the overall management of The Arc. [Back]=

12. Does holding an endowment with the= WCF exclude The Arc from being eligible for WCF Unrestricted Grants, Victor Mur= dock Grants, or Knight Grants?

A: No. The Arc can continue to apply for = other grants from the WCF. [Back]=

13. What is the current fundraising go= al of the endowment?

A: &n= bsp; The current endowment goal is to raise $75,000 in new donations by May 31, 2007= , in order to qualify for an additional $25,000 gift from The Wichita Community Foundation. The Arc’s f= irst (2003) proposal to WCF stated that its initial five-year endowment goal was $550,000 ($500,000, plus $50,000 match) by December 2008. [Back]=

14. Is there a difference between The = Arc of Sedgwick = County Endowment Fund and The Lega= cy of Hope Endowment Fund?

A: No. The title “Legacy of Hope= 221; is used to promote Arc of Sedgwick County events that raise funds specifica= lly for its endowment. [Back]=

15. I'm not rich. How can I afford to = help The Arc?

A: More than 80 percent of all annual= gifts to The Arc endowment are from donors who provide $300 or less. Many employe= rs match such gifts. These gifts add up every year to help provide financial strength for The Arc. Other donors make deferred gifts through bequests, tr= usts or other arrangements. These are called planned gifts. Some donors prefer n= ot to give in the form of cash. Instead, they make other types of gifts such as real estate, or stocks and bonds, both of which can be given outright or through a bequest. [Back]

16. Are gifts to the Arc Endowment tax deductible?

A: Yes. Gifts to the Arc’s Lega= cy of Hope Endowment are tax deductible under Section 170 (b) of the Internal Rev= enue Code, and they qualify for the maximum tax benefits available for charitable giving under federal income, estate and gift tax laws. The Sedgwick Count A= rc is tax-exempt under Section 501(c)(3) of the Internal Revenue Code. [Bac= k]