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EnvironmentHeard and McDonald Islands’ isolation means that its environment has been almost completely unaffected by human visitation. Plant life is limited to plants that can survive the harsh, antarctic climate and find space to grow on the rocky ground. Its landscape is composed of permanent glaciers, coastal lagoons, and a large, active volcano. The Australian Department of the Environment has taken steps to conserve many species of plants and animals and keep the land as unaffected by humans as possible. Human activity on the island is limited to scientific research, military surveillance, and private expeditions. 1
AnimalsHeard and McDonald Islands are home to native species of birds, as well as six breeds of Antarctic seals. The islands are an important breeding ground for several types of seals. Bird breeding has been threatened by the introduction of alien species like mice and cats. The island is also home to other species, including penguins and a variety of fish. 1
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Last modified 03/25/2022
Welcome to ProjectWorldImpact.com. Project World Impact, LLC (“Project World Impact”, “projectworldimpact.com”, “PWI,” “PWI Nonprofit App”, “PWI App”, “PWI Hub”, “PWI Nonprofit Hub”, “Project World Impact”, “we”, “our”, or “us”) maintains this website for your information, and education. Please browse and enjoy projectworldimpact.com (the "Site" or “site”). We provide our content, products, and Services to you (“you”, “your”, “the user”, “user,”, “General Users”, “Registered Users”, “Registered Nonprofit Users”, “Nonprofits”, “Charity”, “Charities”, or “Sellers”, “Seller”, “Buyers”, “Buyer”, “Consumer”, or “Consumers”) on this Site subject to the following terms and conditions (the "Terms," the “Agreement,” or the “Participation Agreement”). By using the Site, and any service, application, plug-in, component, functionality, or program created by Project World Impact, you are agreeing to these Terms. Please read them carefully before using this Site. Should you have any questions concerning this Agreement, please contact email@example.com.
PWI Foundation is a not-for-profit corporation, tax-exempt as a public charity under Section 501(c)(3) of the Internal Revenue Code. Visitors to projectworldimpact.com have the option of donating directly to individual organizations on the site, or can donate to a cause or country on the site. When visitors donate to a cause or country, the money goes directly to the PWI Foundation. PWI Foundation’s independent board identifies specific projects that advance these causes and distributes the funds to the qualified organizations that are best positioned to accomplish the charitable objectives. The grant recipients are selected at the discretion of the Foundation and reported on the site. Unless specifically indicated, PWI or PWI Foundation do not take any percentage of these donations. Donations are still subject to the standard credit card processing rate of the organization. Registration on projectworldimpact.com gives PWI Foundation and PWI the right to solicit funds in your organization's name on behalf of your organization through projectworldimpact.com. PWI Foundation is approved to accept and administer Donor Advised Funds. Specific Terms related to Donor Advised Funds can be found under the heading of “DONOR ADVISED FUNDS AS COMPONENT OF THE PWI FOUNDATION” in this document.
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MODIFYING AND TERMINATING OUR SERVICES
We are constantly changing and improving our Services. We may add or remove functionalities or features, and we may suspend or stop a Service altogether. You can stop using our Services at any time, although we’ll be sorry to see you go. PWI may also stop providing Services to you, or add or create new limits to our Services at any time. If we discontinue a Service, where reasonably possible, we will give you reasonable advance notice and a chance to get information out of that Service.
We may in our discretion change these Terms without notice to you. If any change to these terms is found invalid, void, or for any reason unenforceable, that change is severable and does not affect the validity and enforceability of any remaining changes or conditions. YOUR CONTINUED REGISTRATION AFTER WE CHANGE THESE TERMS CONSTITUTES YOUR ACCEPTANCE OF THE CHANGES. IF YOU DO NOT AGREE TO ANY CHANGES, YOU MUST CANCEL YOUR REGISTRATION.
Project World Impact provides a platform for Registered Nonprofit Users to receive donations from Registered Users on the site. Although there may be normal credit card fees, Project World Impact does not take a percentage of these donations, unless stated otherwise. Additionally, all Registered Nonprofit Users have the sole responsibility for distributing written acknowledgement to Registered Users who have donated funds to them through the PWI site.
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d. PWI has a variety of products and services available to Registered Nonprofit Users and Registered Users. In addition to the Terms listed throughout this document, the following are specific Terms and Conditions for specific PWI products and services:
All PWI Products and Services
Users grant Project World Impact and the nonprofit beneficiary a perpetual, non-exclusive, royalty-free, transferable, sublicensable, worldwide license to use, publicly display, publicly perform, store, reproduce, modify, create derivative works, and distribute User Content of any Campaign Owner or Contributor on or in connection with PWI Products and Services and our related marketing and promotional activities. All Users continue to hold all ownership interest in their User Content. Each Campaign Owner represents and warrants that its User Content and our use of such User Content will not infringe any third party's intellectual property rights, proprietary rights, privacy rights, confidentiality, rights of publicity or otherwise violate these Terms or applicable law.
PWI Charity CRM
Project World Impact provides a contact management system that allows nonprofits to track contacts, potential donors, new leads and more. Charity CRM users grant Project World Impact and PWI Foundation a perpetual, non-exclusive, royalty-free, transferable, sublicensable, worldwide license to use, publicly display, publicly perform, store, reproduce, modify, create derivative works, and distribute User Content of any contacts connected to the Charity CRM for any and all of our related marketing and promotional activities. Registered Nonprofits continue to hold all ownership interest in their User Content. Each Registered Nonprofit represents and warrants that its User Content and our use of such User Content will not infringe any third party's intellectual property rights, proprietary rights, privacy rights, confidentiality, rights of publicity or otherwise violate these Terms or applicable law.
Project World Impact provides a way for nonprofits to utilize text-to-give features. All texting rates and fees may apply. Refer to the donations section above for more information.
PWI Crowdfund, PWI GroupGive, and Other funding platforms
Project World Impact provides funding platforms (such as PWI Crowdfund (“Crowdfund”), PWI GroupGive (“GroupGive”), and other funding platforms) for Registered Nonprofit Users (or “Campaign Owners”) seeking to raise funds for their own Campaigns and for Users (or “Contributors”) to contribute to the Campaigns of other Registered Users who are supporting the Nonprofit.
Campaign Owners can offer gifts or rewards in the form of tangible items or intangible services (collectively, "Perks") to Contributors. Perks are not offered for sale.
Campaign Owners are not permitted to offer or provide any of the following as a Perk:
Contributors are solely responsible for asking questions and investigating Campaign Owners and Campaigns to the extent they feel is necessary before making a Contribution. All Contributions are made voluntarily and at the sole discretion and risk of the Contributor. Project World Impact does not guarantee that Contributions will be used as promised, that Campaign Owners will deliver Perks, or that the Campaign will achieve its goals. Project World Impact does not represent that Campaign Owners will deliver Perks or that Contributions will be used as described in the Campaign
Project World Impact does not endorse, guarantee, make representations, or provide warranties for or about the quality, safety, morality or legality of any Campaign, Perk or Contribution, or the truth or accuracy of User Content posted on the Services. Contributors are solely responsible for determining how to treat their Contributions and receipt of any Perks for tax purposes. If a Contribution is returned to a Contributor, the associated Perks, if any, shall be canceled.
While using the PWI Crowdfunding Services, Campaign Owners may post photos, videos, text, graphics, logos artwork and other audio or visual materials (collectively, "User Content"). Campaign Owners grant Project World Impact and the nonprofit beneficiary a perpetual, non-exclusive, royalty-free, transferable, sublicensable, worldwide license to use, publicly display, publicly perform, store, reproduce, modify, create derivative works, and distribute User Content of any Campaign Owner or Contributor on or in connection with the Crowdfunding Services and our related marketing and promotional activities. Campaign Owners continue to hold all ownership interest in their User Content. Each Campaign Owner represents and warrants that its User Content and our use of such User Content will not infringe any third party's intellectual property rights, proprietary rights, privacy rights, confidentiality, rights of publicity or otherwise violate these Terms or applicable law.
Nonprofit Users can send PWI suggested social media posts, where PWI will post about a nonprofit, cause, or country on PWIs social media platforms. PWI reserves the right to deny, alter, or schedule the post at PWIs discretion and/or in consideration of the “Community Guidelines” stated in these Terms.
The purpose of the Program is to permit Registered Nonprofit Users to receive Distributions from the PWI when customers open new internet tabs using the PWI Fund extension, browse the internet, or make Qualifying Purchases on the online sites that participate in PWI Fund.
PWI Fund customers can select any Eligible Organization, but only Registered Nonprofit Users can receive disbursements from the Program.
"Eligible Organizations" are those charitable organizations that we determine:
PWI will make Distributions to a Register Nonprofit User resulting from browsing on the internet or “Qualifying Purchases”. Subject to the exclusions set forth below, a "Qualifying Purchase" occurs when a customer places an order for a Product from an online site that participates with PWI Fund; and the Product is shipped to or streamed or downloaded by, and paid for by, the customer; and the online site sends money to PWI.
A "Product" is any item sold to someone from an online site that participates in PWI Fund, who has downloaded the PWI Fund extension onto their Browser.
Qualifying Purchases exclude, and you will not be eligible for disbursements in connection with any of, the following:
Distributions from Project World Impact to Registered Nonprofit Users are based on Qualifying Purchases shipped, streamed, or downloaded (as applicable) in a given calendar quarter, and not subsequently returned. Distributions are calculated in accordance with the Operational Documentation, as it may be modified from time to time.
Distributions for each calendar quarter will be made approximately 45 days following the end of that quarter. To account for Product returns that are made after the end of a calendar quarter, we reserve the right in our sole discretion to withhold a portion of your quarterly Distributions for disbursement during the next donation cycle, subject to any reduction due to returns or cancellations from prior quarters. If we determine we have made an overpayment in Distributions to a Registered Nonprofit User as a result of returns not offset by Distributions held back to account for returns, or if we determine that a Registered Nonprofit User received Distributions to which they were not entitled as a result of their actions or omissions (for example, if incomplete or false registration information was provided or otherwise violated this Participation Agreement), we reserve the right, in our sole discretion, to (a) deduct the amount of the overpayment from any donation amount that is due to you in subsequent donation cycles, and/or (b) notify you and request reimbursement for any amounts incorrectly paid to you, in which case you hereby agree to reimburse us for such over-payments promptly and in any event within 30 days of such request. You acknowledge and agree that we are under no obligation to provide you with a report of Qualifying Purchases or Distributions attributed or earned.
If we determine that you are no longer an Eligible Organization or that you or anyone acting on your behalf has violated any term or condition set forth in this Participation Agreement (including failure to qualify as a Registered Organization), we reserve the right to disburse any donation that would have been made to you instead to one or more other Registered Organizations.
When making Distributions to Registered Nonprofit Users, we will either directly deposit the Distributions into a designated U.S. bank account or send a check via U.S. mail. We reserve the right to accrue and withhold Distributions for any Registered Nonprofit User until the total dollars made for that organization is at least $25.00, at which point the accrued and withheld total Distributions will be paid in full during the next quarterly donation cycle. If a total of $25.00 has not accrued by the following quarter, the distributions roll over into the next quarter. After 1 year of not achieving the $25.00 benchmark, the money will be reallocated and disbursed to organization(s) qualified as Registered Nonprofit Users.
PWI charges a service fee to nonprofits of up to 5% of their Registered Users’ PWI Fund purchases. This service fee will help PWI continue to expand the number of online sites, distribute money, and pay miscellaneous fees incurred by PWI.
If an Eligible Organization that is not a Registered Nonprofit User accrues Distributions in a given calendar quarter, PWI will accrue and withhold such Distributions until the donation cycle following the end of the calendar quarter in which it becomes a Registered Nonprofit User. However, if such an Eligible Organization does not promptly become a Registered Nonprofit User, then PWI reserves the right after each calendar quarter in which an Eligible Organization accrues withheld amounts (after expiration of a reasonable period as we determine in our discretion, not to exceed 3 years after such quarter), to reallocate and disburse such accrued and withheld funds to organizations qualified as Registered Nonprofit Users.
PWI may be obligated by law to obtain tax information from the Registered Nonprofit User. If we request tax information that is not provided to PWI, PWI may (in addition to any other rights or remedies available to us) withhold your Distributions until this information is provided or otherwise satisfy PWI that we are not required to obtain the tax information.
If, for any reason, no money accrues after a user purchase or no money is sent to PWI, the purchase made by the Registered User will be invalid to have any percentage or amount of the purchase given to the nonprofit that the Registered User has designated. Also, based on individual state laws, PWI may withhold any money that was made by a customer after purchasing from an online store.
An active list of online sites that send money to PWI based on customer purchases can be found via https://projectworldimpact.com/fund. In order to get access to use PWI Fund as a customer, you can go to https://projectworldimpact.com/fund and create an account, download the browser extensions, or app, and start using it.
Registered Users will select a nonprofit on the https://projectworldimpact.com/fund link. If a user downloads and uses PWI Fund, without having an active, paying, nonprofit on the site, their funds will be reallocated and disbursed to organizations qualified as Registered Nonprofit Users.
PWI assists specific nonprofits in managing their Google Ad Grants ads account from Google, a prominent internet company (“Grantor”), for use in internet advertising within the following conditions located at https://www.google.com/nonprofits/offerings/google-ad-grants.html
A customizable conference app. Provides a Registered Nonprofit User real-time access to the PWI Convene app, where they can build out their conference agenda into an app while including specific agendas, breakout sessions, maps, bios, notes, polls, surveys, and more for their conference. All conference data and attendee data are available for use by PWI in connection with PWI Convene and related marketing and promotional activities.
Discounted Marketing Services
PWI provides up to 50% off on marketing services (websites, apps, graphic design, social media, seo, marketing campaigns, video, etc.) to Registered Nonprofit Users who have subscribed on projectworldimpact.com. The discount is determined by the standard amount the PWI charges nonprofits and for-profit organizations who are not currently on the site. The amount of the discount is not guaranteed and is determined solely by and at the discretion of PWI.
An event platform for Registered Nonprofit Users to post, promote, and track events for their organization, and includes ticketing. PWI is not responsible for the number of tickets available. PWI will not be held liable for ticket validity. When a Registered Nonprofit User does ticketing, they will be charged standard credit card processing fees. PWI does not keep any percentage of the money raised by ticket sales. Event attendees are solely responsible for researching the validity of the event. PWI shall not be responsible for any misrepresented event details listed by a nonprofit. All tickets purchased are nonrefundable.
PWI Swipe is a software product for Registered Users to donate the spare change from their daily purchases (credit or debit card) to Registered Nonprofit Users. Money will be donated to the PWI Foundation at the beginning of every month based on the previous month’s change recorded on the cards they have submitted in the app. The change donated by a Registered User will be directed to the PWI Foundation, an approved 501c(3) organization. At the end of the quarter, donations will be aggregated and distributed by PWI Foundation to the Registered Nonprofit User selected by the Registered User.
PWI Foundation will keep a one time setup fee of $2.50 for each Registered User. This one time setup fee is still considered a donation (to PWI Foundation), but will reduce the amount passed on to the Registered Nonprofit User.
PWI Foundation will email Registered Users monthly with a report on the amount contributed. At the end of the year, PWI Foundation will distribute appropriate tax receipts to the Registered Users.
It is possible for Registered Users to designate a nonprofit organization that is NOT a Registered Nonprofit User (a “Non-subscribing Nonprofit”). For Non-subscribing Nonprofits, PWI Foundation will retain 10% of the funds received related to PWI Swipe to help cover additional costs incurred for project management and associated fees.
The donation will be distributed by PWI Foundation to the designated Registered Nonprofit User and Non-subscribing Nonprofit on a quarterly basis once the total raised is above $25.
Dedicated Team Members
If a Registered Nonprofit User subscribes at the appropriate level, they will have access via a ticketing system to PWI team members to help better use the available software and tools, as well as to help maximize visibility on projectworldimpact.com. Although PWI Team members will have Registered Nonprofit Users as their prime priority, there is no guarantee as to the amount of time (hours) PWI team members will spend working on any individual Registered Nonprofit User. PWI team members will not interact with Registered Users that are connected to nonprofits or Registered Nonprofit Users, but are not Nonprofit User Admins.
Dedicated Apps & Programs (white-labeled products)
If a Registered Nonprofit User subscribes at the appropriate level, they will receive dedicated branding on specific PWI apps and programs (Convene, Storyteller, Fund, and Swipe). This means that the apps and programs will be white-labeled (appear to come directly from the Registered Nonprofit User) and the users will not be as exposed to the PWI brand.
PWI App - Access projectworldimpact.com from a smartphone mobile device.
Registered Users and Registered Nonprofit Users agree to adhere to all of the same terms and conditions as the regular projectworldimpact.com site.
DONOR ADVISED FUNDS AS COMPONENT OF THE PWI FOUNDATION
Donor Advised Funds established at the PWI Foundation (PWI Foundation) are component funds of PWI Foundation, a 501(c)(3) public benefit corporation. All contributions to PWI Foundation’s funds are treated as gifts to a public charity and are generally tax-deductible, subject to individual limitations. Contributions of property other than cash and marketable securities may be added to a fund only with the written consent of PWI Foundation. PWI Foundation does not provide tax or legal advice; we recommend consulting a professional advisor with questions about a gift to PWI Foundation.
INVESTMENT OF ASSETS
In making a gift to PWI Foundation, donors give up all right, title and interest to the assets contributed. In particular, donors cannot choose investments, investment managers or brokers after their gift has been made, with the exception of a recommended customized investment approach as stated below. The Board of PWI Foundation have the right to make any or all investment decisions regarding gifts received, except that fund advisors have advisory privileges with respect to fund investments. All assets contributed to funds will be managed in PWI Foundation’s investment pools, subject to certain approved exceptions. Investment allocations among PWI Foundation’sinvestment pools can be changed. All income and capital gains or losses will be allocated to the fund on a monthly basis.
A donor may recommend a customized investment approach through an outside investment advisor for funds carrying a significant balance. PWI Foundation’s Board must approve the recommended advisor, the advisor’s proposed investment strategy and underlying investments. For current investment fees, please contact PWI Foundation (pwifoundation.org..
USE OF THE FUND
All distributions shall be for charitable, educational, scientific, literary, or religious (including any combination of such purposes) and for administrative purposes, all in furtherance of the purposes of PWI Foundation. Grants must be for charitable purposes, and those grants may be recommended to any 501(c)(3) organization or verified charitable entity located in the United States or any nongovernmental organization outside of the United States having a verifiable charitable purpose.
Grants may also be given for charitable purposes to non-501(c)(3) organizations if the charitable expenditure can be verified through a process called expenditure responsibility.
Expenditure responsibility is required for any organization not described in IRS Section 170(b)(1)(A), including for-profit companies, private operating foundations and new public charities that do not yet have 501(c)(3) status and disqualifying supporting organizations.
Grants given within the United States must be for a minimum of $100. Grants to organizations outside of the United States or grants requiring expenditure responsibility within the United States must be for a minimum of $1,000.
PWI Foundation shall assume responsibility for check writing, bookkeeping, investment management, tax reporting, auditing and evaluation of projects, and for making available to the fund advisors and fund representatives reports of fund income, expenses and grantmaking, as appropriate.
RESTRICTIONS ON GRANTS
In compliance with the Internal Revenue Code, grants are not permitted, for non-charitable purposes; for political contributions or to support political campaign activities; or for any purpose that would provide benefits, goods or services to a donor to the fund, the fund’s advisor(s) or other related parties. A fund advisor is subject to IRS penalties if the fund’s donor(s), advisor(s) or other related parties receive benefits, goods or services in connection with a grant recommendation. This includes grants to satisfy pledges made by any person, including a fund advisor, and non-deductible (or partially tax-deductible) memberships, event tickets, sponsorships, registration fees in tournaments and cause-related marketing activities. Grants are generally not allowed to private non- operating foundations, unless certain exceptions are met. Please contact PWI Foundation if you have questions about the exclusion of benefits from grant recommendations and/or multiple-year payments.
FEES AND MINIMUMS
While there is no set-up fee to open a donor advised fund at PWI Foundation, with certain exceptions, gifts must meet specific initial gift minimums, which vary by fund type. A list of current fees, management fees, and initial gift minimums is available upon request. PWI Foundation reserves the right to change its fee or minimum policies at any time.
PWI Foundation’s annual operating budget is supported by the fees we receive from managing the assets of Donor Advised Funds. Supporting fees cover the costs of the Foundation’s core services, including philanthropic advising, grantmaking, gift and grant processing, investment and charitable asset management, planned giving services, new fund development, civic leadership activities, communications and non-profit capacity building. Subject to change, supporting fees are calculated as follows:
Please note: the minimum annual fee for money that is not immediately distributed is $500/year.
Funds invested in several of our funds incur costs related to third-party investment management and consulting and bank custodian servicers. PWI Foundation’s investment fee is a blended rated based on the asset values and current fees charged by our underlying investment managers and custodians; returns are net of those fees.
ROLE OF ADVISORS
Donors establishing an advised fund may designate any person over 18 years of age to be an advisor on the fund. A fund can have more than one fund advisor. If a fund is advised jointly, upon the death of one fund advisor, the remaining fund advisor(s) retains the privileges associated with the fund.
The donor and any fund advisor may designate any person to be a successor advisor to exercise the privileges and duties of a fund advisor. Successor advisors may assume the privilege to advise the fund only after the deaths or resignations of all initial fund advisors named on the fund. The successor advisor(s) may be required to provide written notification and sufficient proof of the donor’s or fund advisor’s death prior to assuming the privileges and duties of a fund advisor. Successor advisors may appoint further successors. If the successor advisor is a minor, PWI Foundation’s Board of Trustees reserves the right to require that grant recommendations be made by the minor’s legal guardian.
All requests to modify advisor appointments or appoint additional advisors and successor advisors to a fund must be communicated to PWI Foundation in writing. In addition, a written acknowledgement must be received from PWI Foundation confirming that the request has been granted. If PWI Foundation has not received the name(s) of an additional advisor(s) or successor advisor(s) to the fund, or other special instructions,in writing, PWI Foundation will use the fund’s balance to support PWI Foundation’s ongoing internal growth and management.
The following Fund Advisory Privileges and Fund Relationship Definitions further explain the role of advisors and other interested parties to funds at PWI Foundation. These terms correlate to the Fund Agreement forms and will determine the fund’s contacts and advisors.
FUND RELATIONSHIP AND FUND ADVISORY PRIVILEGES DEFINITIONS:
Primary Contact: One person per fund who should be contacted first for anything concerning the fund. This individual may or may not have fund advisory privileges.
Fund Advisor: Individual has full advisory privileges over a fund, including grant recommendations, investment recommendations, naming the fund and appointment of other fund advisors and successor advisors. (This is the highest level of authority.)
Secondary Advisor: Individual also has full advisory privileges over grant recommendations but has no other fund administration advisory privileges. (This is an intermediate level of authority.)
Fund Representative: Individual has access to fund information but no fund advisory privileges. (This is the lowest level of authority.)
Successor Advisor: The second generation fund advisor; he or she has no advisory privileges until the cessation to act of all initial fund advisors. (Primarily for donor advised funds, committee advised funds and scholarship funds.)
PAYMENTS FROM AN ADVISED FUND
PWI Foundation does not permit expense reimbursements, loans, compensation or other similar payments from an advised fund to any donor, fund advisor or related party. All expenses must be paid by PWI Foundation directly after appropriate review of the expenses and their payees, and all expenditures must be pre-approved by PWI Foundation prior to being incurred. The expense submitted for review must be charitable in nature or support a charitable purpose.
PWI Foundation may consider permitting a fund to raise money. All fundraising activities must be pre-approved by the PWI Foundation. Fund advisors must allow at least 30 days for approval. Use of PWI Foundation’s name on any fundraising material is expressly prohibited without prior written approval by PWI Foundation. PWI Foundation cannot reimburse the donor, fund advisor or related parties for expenses related to fundraising activities. All contributions raised in support of the fund must be made payable to PWI Foundation with the specified name of the fund in the memo line. PWI Foundation is not responsible for the success of fundraising activities.
As required by law, all assets contributed to funds become irrevocable gifts to the PWI Foundation, and legal control and responsibility for the funds rest with the PWI Foundation. All funds established at PWI Foundation are subject toPWI Foundation’s variance power, subject to individual limitations, as set forth in PWI Foundation’s bylaws. Variance power gives PWI Foundation the authority to modify any restriction or condition on the distribution of funds for any specified charitable purposes or to specified organizations if, in the sole judgment of PWI Foundation’s Board, such restriction or condition becomes unnecessary, incapable of fulfillment or inconsistent with the charitable needs of the community served.
Designated funds can only be established for the benefit of one qualified public benefit organization. If that organization ceases to exist or dramatically changes its charitable purpose, PWI Foundation will use its variance power to find, if reasonably possible, a similar organization that matches the donor’s general intent. Should the donor request that the organization be changed, all remaining assets will be granted to the original organization and a new fund must be established.
PWI Foundation does not require a fund to receive contributions into it nor to make distributions from the fund every year. However, if a fund advisor is no longer willing or able to advise the fund’s distribution, and no successor advisor is named, PWI Foundation’s Board will assume responsibility for grantmaking.
Dormant Fund Policy
The PWI Foundation annually reviews all of its donor advised funds for inactivity. An inactive donor advised fund is defined as a fund in which there is an absence of contributions to the fund or grant awards issued from the fund for a period of three years.
After a three year period of inactivity, PWI Foundation staff will contact the donor advisors and/or successor advisors (via letter, email and/or telephone) to educate them on how to make grant recommendations through the PWI Foundation. If there is no response from the donor advisors to PWI Foundation’s outreach, and there has been five years of inactivity, PWI Foundation will begin to initiate grants from the inactive funds. If the fund balance is equal to or in excess of the minimum fund size (currently $25,000), then the Board-approved spending policy for the year in question will be applied to the fund balance and grants will be issued in support of PWI Foundation’s grant making. If the value of the fund is less than the current minimum fund size, then the fund will be terminated and the remaining balance will become available for PWI Foundation grantmaking. After seven years of inactivity, the entire balance of the fund will become available for PWI Foundation grant making as directed by PWI Foundation’s Board.
If a donor or successor advisor chooses to become involved in the activity of the fund, then the privilege to advise on the fund reverts back to them, as long as the fund was not fully liquidated. The three year rule for inactivity would resume from the last time of activity in the fund.
CLOSING A FUND
A fund advisor may recommend closing a fund by granting up to 100% of the fund balance to a qualified charitable organization, including any of PWI Foundation’s funds (e.g., field of interest funds,endowment funds, operating funds). Such recommendations must be received in writing, and, if approved, funds will be disbursed in accordance with PWI Foundation’s current grantmaking policies and applicable laws and regulations. Closing a fund by recommending a grant to another qualified charitable organization that is approved will occur as follows: 80% of the current balance will be granted within 10 business days of the request date, barring any issues with the organization’s status as a qualified public charity or equivalent. The remaining balance of the fund, including any residual net earnings, will be granted within the following 45 days. Endowed funds are permanent and may not be closed.
CONFLICT OF TERMS
In the event of an inconsistency between these terms and conditions and any terms and conditions appearing elsewhere in connection with any fund, these terms and conditions, as interpreted by PWI Foundation, shall govern, and PWI Foundation reserves the right to take any actions at any time which, in its discretion, it deems reasonably necessary or desirable for the proper administration of any fund at PWI Foundation or to comply with applicable law.
FREQUENTLY ASKED QUESTIONS
What is a donor advised fund?
A donor advised fund is not a separate legal entity like a trust or a corporation. It is a fund defined by the IRS that a sponsoring charity, like PWI Foundation, creates through a written agreement with a donor. The donor contributes assets to the PWI Foundation, and the PWI Foundation agrees to treat those assets as a separate fund on its books. The donor retains the privilege of recommending charitable grants from the fund and the way in which PWI Foundation should invest the fund’s assets.
Who owns the assets once the gift is made and the fund is opened?
The law requires PWI Foundation to make clear in the agreement, and to obtain the donor’s written acknowledgement, that the assets in a donor advised fund are the property of PWI Foundation and that PWI Foundation has discretion and control over the use and investment of the donor advised fund’s assets.
In order for a donor to take advantage of the tax benefits that flow from a charitable gift, the gift has to be complete—that is, the donor has to part with control over the donated assets. The appearance of donor control could put the donor’s tax deduction in jeopardy. Therefore, fund advisors cannot make pledges on behalf of the fund and can only make non-binding recommendations about grants; they cannot control when and how PWI Foundation will make grants nor control decisions about which grantees will receive funding.
What are the limits on donor benefits in connection with donor advised fund grants?
Donors, fund advisors and related parties (such as family members or business interests) may receive only “incidental” benefits from a grant or investment of a donor advised fund. If a donor, fund advisor or related party receives more than an incidental benefit in connection with a donor advised grant, the IRS can assess a penalty of 125% of the amount of the improper benefit. The penalty may be assessed against either the person who recommended the grant or the person who received the benefit. (There is a separate penalty if a donor, fund advisor or related party receives a direct distribution from the donor advised fund, such as compensation or an expense reimbursement.)
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ALTERNATIVE DISPUTE RESOLUTION
Any dispute relating in any way to the Terms and Conditions or use of any product or service from PWI, may be resolved by binding arbitration rather than in court. The Federal Arbitration Act and federal arbitration law and the laws of the state of Illinois, without regard to principles of conflict of laws, will govern any dispute of any sort that might arise. There is no judge or jury in arbitration, and court review of an arbitration award is limited. However, an arbitrator can award on an individual basis the same damages and relief as a court (including injunctive and declaratory relief or statutory damages), and must follow these Terms and Conditions as a court would.
To begin an arbitration proceeding, you must send a letter requesting arbitration and describing your claim to our registered agent, Wagenmaker & Oberly, LLC. The arbitration will be conducted by the American Arbitration Association ("AAA") under its rules, including the AAA's Supplementary Procedures for Consumer-Related Disputes. The AAA's rules are available at www.adr.org or by calling 1-800-778-7879. Payment of all filing, administration and arbitrator fees will be governed by the AAA's rules. You may choose to have the arbitration conducted by telephone, based on written submissions, or in person in DuPage County, IL or at another mutually agreed location.
Any dispute resolution proceedings will be conducted only on an individual basis and not in a class, consolidated, or representative action. If for a claim proceeds in court rather than in arbitration, we each waive any right to a jury trial.
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