PROCEDURE FOR OPERATION OF ADORE
Section 1. Establishment and Purpose of ADORE
1.1 AMIABLE AID FOUNDATION (hereinafter “AAF”) has approved and ratified the establishment of Amiable Donor-directed revenue (hereinafter “ADORE”) by resolution of the Board of Trustees (hereinafter “Board”). This resolution authorizes the adoption of these procedures for the administration of ADORE. These procedures may be amended from time to time as the Board deems necessary or desirable.
1.2 Establishment of ADORE
ADORE may be established by the donation or transfer of money or property by any person (hereinafter “Donor”) to AAF, whether by contribution, gift, bequest or dedication, or by transfer from any charitable or other organization (hereinafter “Contribution”), to further or carry out the purposes of AAF as set forth in the Resolution. ADORE shall be administered as a subfund of AAF.
1.3 Nature and Terms of ADORE
Each ADORE is owned by AAF in its capacity as Trustee. In that capacity, AAF has ultimate power and control over all of the assets of ADORE and the income derived therefrom, which are used for AAF’s charitable purposes. Each ADORE may be recorded on AAF’s books and records as an identifiable or separate fund and may be given a name or other appropriate designation at the donor’s request.
1.4 Incorporation of the AAF’s authoritative instruments
AAF shall hold and administer each ADORE upon the terms and conditions set forth in the agreement with the Donor and subject to the terms and conditions set forth in AAF’s governing instruments, as amended from time to time, any applicable resolutions of AAF’s Board of Directors and these Procedures for the Administration of ADORE, as amended from time to time. Consistent with the foregoing, the AAF Board of Directors shall have the authority to modify any restriction or condition on distributions from ADORE for a particular charitable purpose if, in the sole discretion of the Board of Directors, the restriction or condition becomes, in practice, unnecessary, unworkable or inconsistent with the charitable needs of AAF.
The Executive Director of AAF is authorized to provide forms for the incorporation of ADORE and such other forms as may be necessary or desirable for the administration of ADORE in accordance with these procedures.
Section 2. Acceptance of ADORE
AAF’s Director of Finance (or such additional officers or employees of AAF as may be authorized by the Board of Directors from time to time) shall have the authority to accept contributions on behalf of AAF to establish or increase a ADORE. A donor may not impose any material restrictions or conditions that prevent AAF from freely and effectively using contributed assets or income derived therefrom in furtherance of a charitable purpose of AAF.
The minimum amount to establish a ADORE is Rs. 1,00,000. AAF will not certify the value of a donation to a donor.
2.3 Participations in Business Enterprise.
AAF will not accept contributions in the form of shares of stock in a corporation, profit or equity interests in a partnership, or any other form of interest in a business if the acceptance of such a contribution would be reasonably likely to subject AAF to tax.
Section 3. Investment of ADORE Assets
AAF has sole responsibility and authority for the investment of the assets of each ADORE. The assets of ADORE may be commingled with the assets of other ADORE or with other funds of AAF or invested in shares of any common investment fund that may be established or used by AAF. However, AAF is not required to commingle the assets for investment purposes and may, in its sole discretion, retain any assets received or hold the assets of any ADORE as a separate entity for investment purposes.
Decisions to retain, invest or reinvest assets and to commingle assets shall be made by the Board of Directors or a committee, agent or director authorized by the Board of Directors in accordance with normal procedures. All ADORE may be charged with an appropriate allocation of direct and indirect costs attributable to the creation and maintenance of such funds, as determined by the Board from time to time.
AAF may establish specific guidelines for the investment of the assets of ADORE and may amend such guidelines from time to time as the Board may deem necessary or desirable.
Section 4 Distributions from the ADORE
4.1. in general
The Board of Directors shall have the right to direct all distributions of income (or principal, if permitted in the Certificate of Incorporation) from ADORE. In some cases, AAF will condition acceptance of the donation on maintaining all or a portion of the principal of ADORE as part of AAF’s unrestricted endowment at the end of the period specified in Section 4.2 below. Alternatively, the balance of a ADORE may be converted to (or added to) a designated or area of interest or treated as a short-term fund if so specified in writing at the time the ADORE is established. The donor of a ADORE (or his or her designee, as permitted in Section 4.2 below) may recommend to AAF, after contributing money or property to a ADORE, that distributions be made from the ADORE consistent with AAF’s specific charitable needs. AAF will review and evaluate all such recommendations, but such recommendations are advisory only and AAF is not bound by such recommendations.
4.2 Donors and their designees have the privilege of making recommendations
The privilege of making recommendations (as described in Section 4.1 above) is extended to donors and their designees provided the following conditions are met:
(a) Individuals. An individual donor may designate one or more successors to make recommendations during the donor’s life or after the donor’s death. The donor’s successor(s) may be anyone the original donor chooses, including but not limited to a spouse, domestic partner, sibling, other family member, friend, or advisor.
(b) Corporations. A corporate donor who establishes ADORE has the privilege of making recommendations. The privilege to make recommendations may be limited at AAF’s discretion. Such a corporation, or persons acting on its behalf, shall designate one or more persons (and may designate their successors) to make the corporation’s recommendations to AAF.
A person who has the privilege of making recommendations as provided above shall be deemed to be a person for purposes of the limitations on distributions from ADORE set forth in Section 4.4 below for purposes of AAF’s compliance with applicable provisions of the Income Tax Laws. In the following sections, the term “donor advisor” refers to persons who have the privilege of making recommendations as provided above, and unless the context clearly indicates otherwise, the term donor includes any donor advisor, and the section applies to both donors and donor advisors.
4.3 Charitable Purposes for Which Distributions May Be Made
The Board of Directors, with the assistance of the Executive Director, shall determine the specific charitable needs for which distributions may be made from ADORE and shall from time to time determine the charitable needs most deserving of support from such funds. Attached as Appendix A is a list of these specific charitable needs as listed at the time these procedures were approved (see “List of Charitable Needs”). This list will be maintained in the AAF office, revised from time to time, and made available to all interested persons. It is the policy of AAF to encourage recommendations from all sources, including persons other than donors, for the inclusion of programs, projects, and activities on the list of specific charitable needs.
The following restrictions apply to all distributions from ADORE:
(a) Minimum Distribution: The minimum amount for a distribution from ADORE shall be Rs. 20,000, subject to a higher limit that may be set by the Board from time to time.
(b) Distributions from Corpus
A donor of ADORE has the right to make recommendations for distributions from the corpus of ADORE. However, this right shall not apply (or shall apply only to a portion of the corpus) if the donor and AAF agree at the time ADORE is established that the entire corpus (or a percentage thereof) shall be retained as part of AAF after the expiration of the period specified in Section 4.2. Optionally, the percentage balance of ADORE may be converted to (or added to) a Restricted Fund or Interest Fund or treated as a Short-Term Fund if so specified in writing at the time of the establishment of ADORE.
(c) No Distributions to Individuals
AAF does not make distributions to an individual from a ADORE.
(d) All distributions must be made for charitable purposes
AAF, as a charitable trust, will not make any distribution from ADORE unless it is a distribution by AAF for its charitable purposes.
(e) Distributions shall not result in any material benefit to the donor. Neither the donor nor any other person may receive, directly or indirectly, any material benefit or privilege in return for a distribution from a ADORE. Distributions from a ADORE may not be used to satisfy any legally enforceable pledge or obligation of any person, including the donor. Neither the donor nor any advisor to the donor, nor any person associated with the donor or any advisor to the donor, may receive, directly or indirectly, more than an incidental benefit as a result of a distribution from ADORE (e.g., a benefit provided by the recipient of the distribution).
(f) No distributions to donors or donor advisors
AAF does not make distributions from ADORE to a donor, a donor advisor, or a person associated with the donor or a donor advisor, whether the distribution is in the form of a grant, loan, compensation, or similar payment.
4.5.1 Donor Recommendations
Recommendations from a donor regarding distributions from ADORE must be made in writing. Donors are encouraged to make recommendations regarding the charitable needs most urgently selected by AAF for distributions. Donors will be provided with the updated list of charitable needs on a regular basis.
4.5.2 Personnel investigation
Each time a donor is recommended, AAF staff investigates whether the recommendation is consistent with the specific charitable needs that AAF believes are most deserving of AAF support. The level of formality staff apply to the evaluation depends on the type and category and purpose of the grant. If staff concludes that the recommendation is not consistent with AAF’s specific charitable needs, the donor will be notified that the recommendation does not meet the standards for distributions.
4.5.3 Board Decision
The Board of Directors shall act on all staff reports submitted to it and shall allocate funds from ADORE in accordance with established procedures. The Board shall meet regularly to facilitate the allocation of funds as needed, provided that the Administrative Committee of the Board may act for it on all matters under these procedures in accordance with the authority delegated to the Administrative Committee.
4.6 Requirement of Current Distributions
It is the general policy of AAF that an amount at least equal to the net income (gross income less expenses) of ADORE be appropriated during the fiscal year in which such net income is earned or before the end of the second month of the next fiscal year, unless the Board of Directors determines that it is in the best interest of AAF to accumulate all or a portion of the net income for a specific project that is expected to be accomplished within a reasonable period of time.
Section 5. Educational Program
The Managing Trustee shall educate donors and other interested persons about these procedures and the charitable needs identified from time to time. This educational program may be part of a larger effort by AAF to educate the public about the scope of AAF’s charitable services. As an integral part of this program, these procedures, including the list of charitable needs, should be disseminated to encourage additional donations to AAF. The goals of the educational program include (i) familiarizing potential donors with the specific charitable needs identified by AAF as worthy of support; (ii) demonstrating the expertise and knowledge of the Board and staff in assessing and serving those needs; (iii) developing donor confidence in AAF as an organization that effectively carries out disability-related charitable programs; (iv) Promote creative and meaningful interaction between AAF and interested parties to utilize the broadest possible base for identifying and assessing changing international charitable needs; and (v) Attract funds from a wide range of donors to AAF’s charitable purposes.
The Board and staff are always receptive to the views of donors and others who bring to their attention charitable needs of organizations that may not have been served in the past but are particularly deserving of support at the present time.
Section 6. Continuity of ADORE
6.1 After the death, etc., of the donor
Upon termination of the privilege of a donor of ADORE to make recommendations, as provided in Section 4.2 above, and in the absence of successors to the donor of ADORE to make recommendations, ADORE shall continue as part of AAF’s unrestricted permanent funds unless previously designated at inception to become (or be added to) an appropriated fund or area of interest.
The AAF Operating Procedures for ADORE have been adopted by the Amiable AID Fund (AAF) Board of Directors. The Board reserves the right, at any time and without notice, to amend, replace or modify the Rules of Procedure for the operation of ADORE.
Appendix – A
Specific charitable needs most deserving of support from ADORE the AMIABLE AID FOUNDATION
The following are categories of specific charitable needs that are consistent with AAF’s goals as established by its Board of Directors. These categories reflect the broad range of AAF’s goals and the interests of people who wish to assist AAF in promoting human needs through a wide range of activities. In setting its priorities, AAF recognizes the benefits that accrue from constructive projects in the disability sector. This range of priorities is AAF’s traditional concern and the philanthropic foundation on which it was founded and operates.
Because unforeseen or unusual needs may arise, it may be necessary to make exceptions to or modify the following needs list for emergency situations or innovative projects that AAF deems particularly worthy of support at the time. In addition, in light of the need to meet changing conditions and current tasks, the following list of needs may be modified or amended from time to time by resolution of the Board of Directors.
Needs by categories
The single theme underlying all of AAF’s work is improving the status of people with physical and mental disabilities, with an emphasis on the elderly. In keeping with this theme, AAF seeks to support projects that improve the situation: