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Foundation Policies

FO-1 - Investment Policy
FO-2 - Scholarship Recipients
FO-3 - Named Fund
FO-4 - Signature
FO-5 - Distributions
FO-6 - Portfolio Mix
FO-7 - Unrated Investments
FO-8 - Finance, Audit, & Investment Committee
FO-9 - Socially Responsible Investing
FO-10 - Recognition of long service by Directors


Mid-Atlantic Christian University - Mid-Atlantic Foundation - Policy #1

SUBJECT: Investment Policy

DATE: September 18, 2007
REVISED: October 18, 2012
NEXT SCHEDULED REVIEW: Annually by the FAI Committee and Board of Directors at the October meeting (October 2015).

APPROVED BY OF DIRECTORS: October 17, 2013

Policy for: Mid-Atlantic Foundation
Procedure for: Mid-Atlantic Foundation Finance Audit Investment Committee
Authorized by: Chairman of the Board of Directors of Mid-Atlantic Foundation
Issued by: Board of Directors of the Mid-Atlantic Foundation and Board of Trustees of Mid-Atlantic Christian University

I. Purpose

The primary investment objective of the Mid-Atlantic Foundation (MACU Foundation) is to achieve reasonable and reliable long-term growth of capital whose purchasing power is buffered from the effects of inflation, while still preserving the historical principal balance.  

II. Policy

These endowment funds stipulate that the principal is to be maintained in perpetuity, for the purpose of producing present and future income to support the purpose(s) stipulated in the gift and/or the long-term objectives of the MACU Foundation.  Moderate variability of returns over the near term may be experienced in order to achieve this objective.

The Foundation will invest the endowed principal in assets which balance safety of principal, growth of principal, and generation of income. The investment parameters include investing the funds for long-term growth and income, while preserving principal with minimal risk. 

III. Procedure

  1. To maintain the ability to deal with short term obligations and unplanned cash requirements that might arise, the Finance Audit and Investment (FAI) Committee requires that enough cash or cash equivalents, including money market funds, CDs, short term U.S. Treasury bills, and/or other appropriate short term investments be available to manage projected cash flow. 
  2. The FAI Committee of the MACU Foundation Board of Directors will utilize selected professional investment consultant(s) and delegate investment management authority to chosen professional money manager(s) who will assist the MACU Foundation in meeting its investment objectives and fiduciary responsibilities.  No single individual will be permitted to make investments on behalf of the Foundation. 
  3. Performance results will be calculated in accordance with generally accepted standards and will be communicated at least quarterly (monthly preferred) to the Finance, Audit & Investment Committee (FAI Committee) of the MACU Foundation Board of Directors and at least semi-annually to the full board. The investment performance of total portfolios, as well as asset class components, will be measured against commonly accepted performance benchmarks. Consideration shall be given to the extent to which the investment results are consistent with the overall objectives as set forth in this policy. The FAI Committee intends to evaluate the portfolio(s) over a two to five year period, but reserves the right to terminate an Investment Consultant and/or Money Manager for any reason including the following: 
    1. Investment performance, which is significantly less than anticipated, given the discipline employed, and risk parameters established or unacceptable justification of poor results. 
    2. Failure to adhere to any aspect of this investment objective and policy, including reporting requirements and communication. 
    3. Significant qualitative changes to the investment management organization. Money Managers shall be reviewed regularly regarding performance and other factors that may impact their ability to achieve the desired investment results.
  4. The Foundation will distribute funds in accordance with its Distribution Policy, currently policy 5.

IV. Published: Policy Manual

V. Reason for Revision: 

VI. Appendices

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Mid-Atlantic Christian University - Mid-Atlantic Foundation - Policy #2

SUBJECT: Selection of recipients of Mid-Atlantic Foundation student scholarships

DATE
REVISED: May 10, 2012

NEXT SCHEDULED REVIEW: Annually by the FAI Committee and Board of Directors at the October meeting (October 2015)

APPROVED BY OF DIRECTORS: October 17, 2013

Policy for: Mid-Atlantic Foundation
Procedure for: Mid-Atlantic Foundation Finance Audit Investment Committee
Authorized by: Chairman of the Board of Directors of Mid-Atlantic Foundation
Issued by: Board of Trustees

I. Purpose

To prescribe the process for annual selection of student recipients of student scholarship funds.

II. Policy

The Mid-Atlantic Christian University Scholarship Committee will select the recipients of the student scholarships. The Committee operates under the direction of the Vice President for Finance.

III. Procedure

  1. The total amount available for award will be determined according to Mid-Atlantic Foundation Policy #5, Distributions.
  2. Awards for “named” scholarships will be made according to the criteria established by the organization, individual, or estate that established the scholarship.
  3. The committee does not have to award a scholarship if it determines that no applicant meets the criteria.
  4. The Foundation Director will represent the Foundation at the Scholarship Committee meetings but will have no voting rights in selection of recipients.

IV. Published: Policy Manual

V. Reason for Revision: 

VI. Appendices

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Mid-Atlantic Christian University - Mid-Atlantic Foundation - Policy #3

SUBJECT: Minimum amount for a named fund

DATE: August 1, 1985

REVISED: May 10, 2012
NEXT SCHEDULED REVIEW: Annually by the FAI Committee and Board of Directors at the October meeting (October 2014).

APPROVED BY OF DIRECTORS: October 17, 2013

Policy for: Mid-Atlantic Foundation
Procedure for: Director of the Mid-Atlantic Foundation
Authorized by: Chairman of the Board of Directors of Mid-Atlantic Foundation
Issued by: Board of Trustees

I. Purpose

The Foundation Board of Directors sets the minimum amount needed for a fund to be named and awarded.  As of October 31, 2010 the minimum is $10,000.

II. Policy

As needed, the Foundation Board of Directors will change the minimum dollar amount for endowments.

III. Procedure

  1. When a fund reaches the minimum it is eligible to give an annual award.
  2. Earnings on any funds that have not yet achieved the "named fund" status will be distributed as general scholarship awards.  Only donor gifts qualify for getting a fund over that threshold, not earnings on the fund.
  3. For new funds beginning after October 21, 2010, if after seven years a fund has not reached the minimum amount to be a named fund the balance will be moved into another fund which has similar designations or into the Presidential Merit Scholarship. Funds established prior are not subject to the seven-year rule. The decision to move the funds will be voted upon by the Foundation Directors and noted in the meeting minutes.
  4. Some funds are still accumulating gift funds to reach the minimum for the time that the fund was created.  The chart below shows the history of the minimums set by the board. When the fund reaches the amount for the time period in which it was started it will become eligible for giving awards.
Date Minimum set by Board Amount
 September 17, 1985  $1,500
 February 9, 1998  $2,000
 January 22, 2007  $5,000
 October 31, 2010  $10,000

IV. Published: Policy Manual

V. Reason for Revision: 

VI. Appendices

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Mid-Atlantic Christian University - Mid-Atlantic Foundation - Policy #4

SUBJECT: Signature requirements on bank accounts

DATE: May 10, 2012
REVISED: May 10, 2012
NEXT SCHEDULED REVIEW: Annually by the FAI Committee and Board of Directors at the October meeting (October 2015)

APPROVED BY OF DIRECTORS: October 17, 2013

Policy for: Mid-Atlantic Foundation
Procedure for: Director of the Mid-Atlantic Foundation
Authorized by: Chairman of the Board of Directors of Mid-Atlantic Foundation
Issued by: Board of Trustees

I. Purpose

This policy sets forth how checks are written in order to adhere to accounting procedures.

II. Policy

All checks written by Mid-Atlantic Foundation will have two signatures.

III. Procedure

 

  1. Checks are to be signed by any two of the following list of approvers:
    1. Foundation Executive Director
    2. Foundation Chairman
    3. Foundation Vice Chairman
    4. Foundation Treasurer
    5. Foundation Secretary
    6. University Vice President of Finance
    7. University Assistant Vice President of Finance
  2. The account signers will be reviewed, reaffirmed, or replaced annually or more often based on filling these positions upon vacancy. 

IV. Published: Policy Manual

V. Reason for Revision: 

VI. Appendices

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Mid-Atlantic Christian University - Mid-Atlantic Foundation - Policy #5

SUBJECT: Endowment distributions

DATE: September 18, 2007
REVISED: October 18, 2012
NEXT SCHEDULED REVIEW: Annually by the FAI Committee and Board of Directors at the October meeting (October 2015)

APPROVED BY OF DIRECTORS: October 17, 2013

Policy for: Mid-Atlantic Foundation
Procedure for: Mid-Atlantic Christian University Finance Department
Authorized by: Chairman of the Board of Directors of Mid-Atlantic Foundation
Issued by: Board of Directors of the Mid-Atlantic Foundation and Board of Trustees of Mid-Atlantic Christian University

I. Purpose

This policy sets forth how award distributions are made from Foundation funds.

II. Policy

The payout will be set at the October board meeting for the following fiscal year payout. The Board will set the Fiscal Year X+1 distribution at the Fall meeting of year X.

III. Procedure

  1. To ensure the transparency between the Board of Directors and the University, the University Finance Department will be responsible for determining the net asset value of the Foundation assets, provide the values used to calculate the payouts, and will make a recommendation to the Board on the amount to distribute the following fiscal year. These actions will be performed so that the Board of Directors may vote on the distribution at their October meeting.
  2. The annual payout will range from a 1% payout to a 6% payout of the 3-year rolling average of the permanently restricted net assets. The payout range gives the Board flexibility to act based upon current financial environments.

IV. Published: Policy Manual

V. Reason for Revision: 

VI. Appendices

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Mid-Atlantic Christian University - Mid-Atlantic Foundation - Policy #6

SUBJECT: Portfolio Mix

DATE: January 22, 2008
REVISED: May 10, 2012
NEXT SCHEDULED REVIEW: Annually by the FAI Committee and Board of Directors at the October meeting (October 2015)

APPROVED BY OF DIRECTORS: October 17, 2013

Policy for: Mid-Atlantic Foundation FAI Committee
Procedure for: Mid-Atlantic Foundation FAI Committee
Authorized by: Chairman of the Board of Directors of Mid-Atlantic Foundation
Issued by: Board of Directors of the Mid-Atlantic Foundation and Board of Trustees of Mid-Atlantic Christian University

I. Purpose

This policy is meant to be a safeguard for diversification of holdings.

II. Policy

This policy sets forth the maximum amount for a single holding in order to minimize risk of loss of an under-producing investment.

III. Procedure

To insure proper diversity of portfolio mix, the Foundation will endeavor to limit itself to holding no more than 10% of its value in any single investment instrument. Individual holdings of mutual funds would be subject to this limit as well, but an investment firm does not count as a single investment instrument for these purposes.

IV. Published: Policy Manual

V. Reason for Revision: 

VI. Appendices

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Mid-Atlantic Christian University - Mid-Atlantic Foundation - Policy #7

SUBJECT: Unrated investments

DATE: January 22, 2008
REVISED: October 22, 2009
NEXT SCHEDULED REVIEW: Annually by the FAI Committee and Board of Directors at the October meeting (October 2015)

APPROVED BY OF DIRECTORS: October 17, 2013

Policy for: Mid-Atlantic Foundation FAI Committee
Procedure for: Mid-Atlantic Foundation FAI Committee
Authorized by: Chairman of the Board of Directors of Mid-Atlantic Foundation
Issued by: Board of Directors of the Mid-Atlantic Foundation and Board of Trustees of Mid-Atlantic Christian University

I. Purpose

The purpose of this policy is to provide a guideline for investment quality of unrated investments.

II. Policy

Church bonds are unrated investments and may be considered risky. The Foundation may consider investing in church bonds for the purpose of benefiting the God’s Kingdom work.

III. Procedure

The Foundation will limit its ownership of unrated church bonds to no more than 5% of its total investments value.

IV. Published: Policy Manual

V. Reason for Revision: 

VI. Appendices

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Mid-Atlantic Christian University - Mid-Atlantic Foundation - Policy #8

SUBJECT: Finance, audit and investment committee

DATE: January 22, 2008
REVISED: May 10, 2012
NEXT SCHEDULED REVIEW: Annually by the FAI Committee and Board of Directors at the October meeting (October 2015)

APPROVED BY OF DIRECTORS: October 17, 2013

Policy for: Mid-Atlantic Foundation FAI Committee
Procedure for: Mid-Atlantic Foundation FAI Committee
Authorized by: Chairman of the Board of Directors of Mid-Atlantic Foundation
Issued by: Board of Directors of the Mid-Atlantic Foundation and Board of Trustees of Mid-Atlantic Christian University

I. Purpose

The purpose of the Finance, Audit, and Investment Committee is to assist in more direct management of the affairs of the Foundation.

II. Policy

The FAI committee makes investment recommendations to the Foundation Board.

III. Procedure

  1. Committee members will be more active than other members of the board, and it is recommended that these persons be among the more financially savvy members of the Board.
  2. Committee membership will consist of 3 to 5 members, one of which would always be the current Chairman of the Foundation Board and an Executive Director if any. At least one committee member would serve from each director member class.
  3. The committee will be responsible for appropriate review of Foundation policies.
  4. This committee will have more regular contact with investment advisors.
  5. The committee will do an in-depth initial analysis of possible investments or changes to investments that will be recommended to the board.
  6. Any contact with Auditors will be made primarily through this committee and they will be responsible for providing auditing oversight.
  7. The committee will keep minutes of each meeting.

IV. Published: Policy Manual

V. Reason for Revision: 

VI. Appendices

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Mid-Atlantic Christian University - Mid-Atlantic Foundation - Policy #9

SUBJECT: Socially responsible investing

DATE: October 17, 2013
REVISED:
NEXT SCHEDULED REVIEW: Annually by the FAI Committee and Board of Directors at the October meeting (October 2015)

APPROVED BY OF DIRECTORS: October 17, 2013

Policy for: Mid-Atlantic Foundation FAI Committee
Procedure for: Mid-Atlantic Foundation FAI Committee
Authorized by: Chairman of the Board of Directors of Mid-Atlantic Foundation
Issued by: Board of Directors of the Mid-Atlantic Foundation and Board of Trustees of Mid-Atlantic Christian University

I. Purpose

This policy is intended to assist the Mid-Atlantic Foundation Board of Directors, FAI committee, and investment firms to invest in a socially responsible manner by utilizing care, skill, prudence, and due diligence when selecting investments that align to the basic values in the standards of conduct of Mid-Atlantic Christian University.

II. Policy

The Foundation will avoid investing in corporations that cause substantial social injury by promoting addictive substances or behaviors. The Foundation shall not invest in corporations where the majority of their activity is based on the manufacture, sales, or servicing of Alcohol, Tobacco, or Gambling.

III. Procedure

  1. It shall be the primary responsibility of the FAI committee to conduct periodic reviews, supervise, monitor, and evaluate such investments to determine inclusivity.
  2. In areas such as indices, mutual funds, or large conglomerates: an evaluation will be done on the asset or revenue mix to determine if holdings of 50% or greater are in the designated categories, or if the corporate branding identifies or promotes such activities.
  3. Any board member at any time may raise a company that they believe to be incompatible with this policy. The FAI committee will engage in substantive discourse on the issue to determine outcomes.
  4. It shall be the responsibility of the financial advisors to maintain the necessary controls and exclusion criteria, as they deem appropriate to assist in the facilitation of this policy.

IV. Published: Policy Manual

V. Reason for Revision: 

VI. Appendices

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Mid-Atlantic Christian University - Mid-Atlantic Foundation - Policy #10

SUBJECT: Recognition of long service by Directors

DATE: May 8, 2014
REVISED:
NEXT SCHEDULED REVIEW: Annually by the FAI Committee and Board of Directors at the October meeting (October 2015).

APPROVED BY BOARD OF DIRECTORS: May 8, 2014

Policy for: Mid-Atlantic Foundation
Procedure for: Director of the Mid-Atlantic Foundation
Authorized by: Chairman of the Board of Directors of Mid-Atlantic Foundation
Issued by: Board of Directors of the Mid-Atlantic Foundation and Board of Trustees of Mid-Atlantic Christian University

I. Purpose

To recognize long service of Directors. 

II. Policy

The Executive Director of the Foundation will lead the university in recognizing Foundation Directors for long service. 

III. Procedure

  1. The university will establish a scholarship fund, which will be named in honor of members of the Board of Directors of the Foundation.
  2. The university will publicize the scholarship fund in appropriate publications in order to encourage alumni, family of Directors, and friends to contribute to the fund in honor of the Directors.
  3. The interest earned on the principal of this fund will be awarded as student scholarships, administered by the scholarship committee. The principal will be maintained in perpetuity.
  4. The university will list names of former MACU Directors who have served at least ten years in both the student handbook and the catalog.
  5. Commencing with a Director's fifteenth year of service and thereafter on five-year anniversaries, the University will transfer to the Foundation from the general fund $50 per year of service for each Director being so honored.

IV. Published: Policy Manual

V. Reason for Revision: 

VI. Appendices

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