2023 PWI Foundation Terms and Conditions & Privacy Policy
PWI Foundation
Last modified: 04/30/2023
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 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. However, donations are still subject to the standard credit card processing rate of the organization.
By registering on projectworldimpact.com, you give 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 also approved to accept and administer Donor Advised Funds. Please refer to the specific terms related to Donor Advised Funds found under the heading “DONOR ADVISED FUNDS AS COMPONENT OF THE PWI FOUNDATION” in this document.
DONOR-ADVISED FUNDS AS A COMPONENT OF THE PWI FOUNDATION
Donor Advised Funds established at the PWI Foundation (“PWI Foundation”) are considered component funds of the PWI Foundation, which is a 501(c)(3) public benefit corporation. All contributions made 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 with the prior written consent of the PWI Foundation. PWI Foundation does not offer tax or legal advice, and we highly recommend consulting a professional advisor with any questions about a gift to PWI Foundation.
INVESTMENT OF ASSETS
Assets Contributed: In making a gift to the PWI Foundation, donors give up all rights, titles, and interests to the assets contributed. Donors cannot choose investments, investment managers, or brokers after their gift has been made, except for a recommended customized investment approach as stated below. The Board of PWI Foundation has the right to make any or all investment decisions regarding gifts received, except that fund advisors have advisory privileges with respect to funding 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’s investment pools can be changed. All income and capital gains or losses will be allocated to the fund on a monthly basis.
Customized Investment Approach: 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 made by the PWI Foundation must be used for charitable, educational, scientific, literary, or religious, or for administrative purposes that further PWI Foundation’s mission.
Grants recommended by the PWI Foundation must be for charitable purposes, and may be given to any 501(c)(3) organization or verified charitable entity located in the United States or any nongovernmental organization outside of the United States with a verifiable charitable purpose.
The PWI Foundation may also give grants for charitable purposes to non-501(c)(3) organizations, provided that 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 made within the United States must be for a minimum of $100. Grants made to organizations outside of the United States, or grants requiring expenditure responsibility within the United States, must be for a minimum of $1,000.
The PWI Foundation shall assume responsibility for check writing, bookkeeping, investment management, tax reporting, auditing, and evaluation of projects, and shall make 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 strictly prohibited for non-charitable purposes,political contributions or to support political campaign activities. Additionally, grants are not allowed 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. Any fund advisor to be providing benefits, goods, or services to the fund’s donor(s), advisor(s), or other related parties in connection with a grant recommendation is subject to IRS penalties. This includes grants to fulfill pledges made by any person, including a fund advisor, and non-deductible (or partially tax-deductible) memberships, event tickets, sponsorships, registration fees for tournaments, and cause-related marketing activities. Grants are generally not permitted to private non-operating foundations unless certain exceptions are met. If you have any questions about the exclusion of benefits from grant recommendations and/or multiple-year payments, please contact PWI Foundation.
FEES AND MINIMUMS
Initial Gift Minimums:
There is no set-up fee to open a donor-advised fund at the 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. The PWI Foundation reserves the right to change its fee or minimum policies at any time.
Supporting Fees: PWI Foundation relies on the fees it receives from managing the assets of Donor Advised Funds to support its annual operating budget. These supporting fees help cover the costs associated with 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.
The supporting fees are subject to change and are calculated based on the following tiered structure:
- 75 basis points on funds up to $1 million
- 50 basis points on funds between $1 million and $5 million
- Contact PWI Foundation regarding funds above $5 million
It is important to note that there is a minimum annual fee of $500 for funds that are not immediately distributed.
Investment Fees: Funds invested in several of our funds may incur costs related to third-party investment management and consulting, as well as bank custodian services. The investment fee charged by PWI Foundation is a blended rate based on the current fees charged by our underlying investment managers and custodians and is calculated based on the asset values of the funds. Returns on investments are net of all applicable fees, including the investment fee.
ROLE OF ADVISORS
Donors establishing an advised fund may designate any individual over the age of 18 to be an advisor on the fund. A fund may have multiple fund advisors. In the event that a fund is jointly advised and one of the fund advisors passes away , the remaining fund advisor(s) will retain the privileges associated with the fund.
SUCCESSOR ADVISORS
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. However, such an appointment must be made in writing and provided to the PWI Foundation for approval. Successor advisors may assume the privilege to advise the fund only after the deaths, resignations, or incapacity of all initial fund advisors named on the fund. The successor advisor(s) must provide written notification and sufficient proof of the donor’s or fund advisor’s death or incapacity prior to assuming the privileges and duties of a fund advisor. Successor advisors may also appoint further successors, subject to PWI Foundation’s approval. 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.
Requests to modify advisor appointments or appoint additional advisors and successor advisors to a fund must be made in writing and submitted to PWI Foundation. PWI Foundation will respond to the request in writing, acknowledging receipt and confirming whether or not the request has been granted. If PWI Foundation does not receive the name(s) of an additional advisor(s) or successor advisor(s) to the fund, or other special instructions, in writing, the fund’s balance may be used to support PWI Foundation’s ongoing internal growth and management. This includes, but is not limited to, expenses such as salaries, rent, and other operating costs.
The Fund Advisory Privileges and Fund Relationship Definitions below outline the roles and responsibilities of advisors and other interested parties in relation to funds at PWI Foundation. These terms are integral to the Fund Agreement forms and will determine the fund’s contacts and advisors.
Please note that any changes to advisor appointments or the appointment of additional advisors and successor advisors will be subject to PWI Foundation’s approval and may require additional documentation or information.
FUND RELATIONSHIP AND FUND ADVISORY PRIVILEGES DEFINITIONS:
Primary Contact: This individual should be the first point of contact for anything concerning the fund. They may or may not have fund advisory privileges.
Fund Advisor: This individual has full advisory privileges over a fund, including grant and investment recommendations, investment recommendations, naming the fund, and the appointment of other fund advisors and successor advisors. This is the highest level of authority.
Secondary Advisor: This individual has full advisory privileges over grant recommendations, but no other fund administration advisory privileges. This is an intermediate level of authority.
Fund Representative: This individual has access to fund information but no fund advisory privileges. This is the lowest level of authority.
Successor Advisor: This is the second-generation fund advisor. They have no advisory privileges until the cessation of all initial fund advisors. This is primarily for donor-advised funds, committee-advised funds, and scholarship funds.
Please note that the roles and responsibilities of each type of advisor or representative may be further outlined in the Fund Agreement forms.
PAYMENTS FROM AN ADVISED FUND
PWI Foundation strictly prohibits expense reimbursements, loans, compensation, or any other similar payments from an advised fund to any donor, fund advisor, or related party. All expenses related to the fund must be paid by PWI Foundation directly, after a thorough review of the expenses and their payees.
All expenditures must be pre-approved by the PWI Foundation prior to being incurred. The expense submitted for review must be charitable in nature or support a charitable purpose, as defined by the Internal Revenue Service (IRS) regulations and PWI Foundation’s policies.
PWI Foundation reserves the right to refuse any expense that does not comply with these regulations or that is deemed inappropriate or unreasonable. Any expense not approved by PWI Foundation will be the sole responsibility of the fund advisor or donor, and may result in legal action, including the removal of the advisor or donor from any further involvement with the fund.
FUNDRAISING POLICY
PWI Foundation may permit a fund to conduct fundraising activities . However, all fundraising activities must be pre-approved by the PWI Foundation. Fund advisors must allow at least 30 days for approval prior to the commencement of any fundraising activities. The use of the PWI Foundation’s name on any fundraising material is strictly prohibited without prior written approval from PWI Foundation. PWI Foundation cannot reimburse the donor, fund advisor, or related parties for any 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. Please note that PWI Foundation is not responsible for the success of fundraising activities, nor does it guarantee any specific outcome or result from such activities.
VARIANCE POWER
As required by law, all assets contributed to funds become irrevocable gifts to PWI Foundation Legal control and responsibility for the funds rest with PWI Foundation. All funds established at PWI Foundation are subject to PWI 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.
Please note that any modification of the terms of a fund will be done in accordance with the laws and regulations governing such modifications. PWI Foundation will always strive to act in the best interests of the charitable purposes for which the fund was established.
DESIGNATED FUNDS
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.
If the donor requests to change the organization, all remaining assets in the fund will be granted to the original organization, and a new fund must be established for the new organization.
Please note that PWI Foundation will make every effort to honor the donor’s wishes while ensuring compliance with applicable laws and regulations.
FUND INACTIVITY
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 in accordance with the fund’s charitable purpose.
Please note that PWI Foundation will make every effort to honor the donor’s wishes while ensuring compliance with applicable laws and regulations.
Dormant Fund Policy
The PWI Foundation conducts an annual review of all its donor-advised funds for inactivity. An inactive donor-advised fund is defined as a fund in which there have been no contributions or grant awards issued for a period of three years.
After a period of three years of inactivity, PWI Foundation team will reach out to the donor advisors and/or successor advisors (via letter, email, and/or telephone) to provide guidance on how to make grant recommendations through the PWI Foundation. If the donor advisors do not respond to the PWI Foundation’s outreach, and there have been five years of inactivity, PWI Foundation will initiate grants from the inactive funds. If the fund balance is equal to or exceeds the minimum fund size (currently $25,000), then the Board-approved spending policy for the year will be applied to the fund balance and grants will be issued in support of the PWI Foundation’s grant making. If the balance 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 made in writing and will be subject to approval by PWI Foundation. If the request is 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.
Note that endowed funds are permanent and may not be closed.
CONFLICT OF TERMS
In case of any inconsistency between these terms and conditions and any other terms and conditions associated with a fund, these terms and conditions shall take precedence, as interpreted by PWI Foundation. PWI Foundation reserves the right to take any actions deemed reasonably necessary or desirable, at any time, for the proper administration of any fund or to comply with applicable law.
FREQUENTLY ASKED QUESTIONS
What is a donor-advised fund?
A donor-advised fund is a type of charitable fund that is not a separate legal entity, such as a trust or a corporation. It is established through a written agreement between a donor and a sponsoring charity, like PWI Foundation, which creates and manages the fund. The donor contributes assets to the PWI Foundation, which then holds and manages those assets in a separate account on its books. The donor retains the privilege of recommending charitable grants from the fund, and PWI Foundation is responsible for investing the fund’s assets in accordance with the donor’s recommendations and its own investment policies.
Who owns the assets once the gift is made and the fund is opened?
The law requires PWI Foundation to make it clear in the agreement and to obtain the donor’s written acknowledgment , that the assets in a donor advised fund belong to the PWI Foundation, and that PWI Foundation has full discretion and control over the use and investment of the donor advised fund’s assets.
It is important to note that in order for a donor to receive the tax benefits associated with a charitable gift, the gift must be complete, meaning that the donor must relinquish control over the donated assets. The appearance of donor control could potentially put the donor’s tax deduction in jeopardy. Therefore, fund advisors are not permitted to make pledges on behalf of the fund, nor can they exercise control over decisions regarding which grantees will receive funding or when and how grants will be made. Fund advisors may only provide non-binding recommendations regarding grants
PWI Foundation reserves the right to modify or amend these terms and conditions at any time and for any reason, without prior notice to you. We recommend that you regularly review these terms and conditions to ensure that you are aware of any changes. By continuing to participate in the donor advised fund program, you are indicating your agreement to be bound by the most current version of these terms and conditions.
What are the limits on donor benefits in connection with donor-advised fund grants?
Donors, fund advisors, and related parties may receive only incidental benefits from a grant or investment of a donor-advised fund. The term “incidental” is defined by the IRS as a benefit that is insignificant in relation to the overall charitable purpose of the grant or investment. If a donor, fund advisor, or related party receives more than an incidental benefit in connection with a donor-advised grant, the IRS may 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. Please note that there is a separate penalty if a donor, fund advisor, or related party receives a direct distribution from the donor-advised funds, such as compensation or an expense reimbursement.