Funds may be established by an individual, an individual and the individual’s Spouse, or by a single trust, corporation, foundation, partnership, limited liability company, or charitable organization.

The individual(s) or entity initially establishing the Fund in the manner described above are referred to in this policy and in the DAF Agreement as the “Donor.” Where Spouses have established a Fund together, they are referred to in this policy as the “Donor” collectively and must act together in exercising the privileges of a Donor. See Paragraph G of Section 3.4 regarding contributions by individuals or entities who are not designated as the Donor in the DAF Agreement (“Third-Party Donors”). Use of the uncapitalized term “donors” in this Policy refers generally to any contributors to a Fund, whether the Donor or Third-Party Donors.

A Fund is created when Brown and the Donor execute a Fund Agreement, the Donor makes (or facilitates from an affiliated entity as described in Paragraph G of Section 3.4) an irrevocable and unconditional gift to Brown of assets valued at one hundred thousand dollars ($100,000) or more, and Brown accepts the contribution. Each Fund will be recorded as an identifiable and separate Fund and may be given a name or other appropriate designation as requested by the Donor, as described in Section 3.2.

The Brown Portion will be invested in Brown’s endowment. The Qualified Charity Portion will be invested in Brown’s endowment, unless the Donor elects in writing at the time the gift is made to invest the Qualified Charity Portion in a money market account established by Brown. Once an investment election of the Qualified Charity Portion is made, whether the election is made affirmatively or by default, any election changes can only be made on an annual basis in writing and subject to the aggregate Maximum Monthly Distribution Threshold described in Section 3.7.15. Investment elections are advisory only, and are not binding on Brown which, by law, has final authority to determine the investment and management of all of Brown’s funds and assets, including the assets of the Fund.

1. Discretion to Accept or Reject: Brown must review and approve all contributions. Brown reserves the right to reject a contribution for any reason and is subject to the University’s Gift Acceptance Policies.
2. Irrevocable Once Accepted: Upon acceptance, all assets contributed to a Fund constitute an outright, irrevocable gift to Brown. The Fund is the sole and exclusive property of Brown and cannot be deemed held by Brown in a trustee capacity. Brown will provide to each Donor and Third-Party Donor (if any) contributing to the Fund a contemporaneous written acknowledgment of the contribution consistent with the requirements outlined in IRS Publication 526 (Charitable Contributions), including the required statement confirming that Brown has exclusive legal control over the assets contributed.
3. Unconditional: In making a contribution, no donor may impose any restriction or condition that prevents Brown from freely and effectively using the contributed assets, or the income derived therefrom, in furtherance of Brown’s charitable purposes and mission.
4. Minimum Initial Contribution: The initial commitment to establish a Fund must be valued at one hundred thousand dollars ($100,000) or more at the time the asset is transferred to and accepted by Brown.
5. Additions: Any additions to existing Funds may be made at any time, in suggested minimum additions of one hundred thousand dollars ($100,000).
6. Allocation Requirement: One-quarter of the initial contribution and one-quarter of each addition made to the Fund and of any income and appreciation thereon, will be irrevocably donated and allocated to the Brown Portion. The remaining three-quarters of the initial contribution of a Fund, three-quarters of any additions to the Fund, and any appreciation or income attributable to such contributions and additions may be allocated to the Qualified Charity Portion, which can benefit any Qualified Charities, including Brown.
7. Third-Party Donor Contributions: A Third-Party Donor may contribute to Brown as a subsequent addition to the balance of any existing Fund. All contributions by Third-Party Donors must be accompanied by a form signed by both the Third-Party Donor and the Advisor and must meet the criteria outlined in this policy regarding contributions. Any Fund privileges with respect to contributions by Third-Party Donors including privileges regarding investment allocation and/or grant recommendations, and designation of Advisors) may be exercised only by the Donor as designated in the Fund’s DAF Agreement, and not by Third-Party Donors, although the designated Donor may name a Third-Party Donor as the Advisor in accordance with Section 3.5. Third-Party Donors will not receive anything in exchange for or in consideration of their contributions. Donors must not solicit contributions from Third-Party Donors on behalf of a specific charitable organization or on their own behalf and may not guarantee to Third-Party Donors that donations will be used for any specific purpose, including but not limited to grants to a specific charitable organization. In Brown’s discretion, an individual may be treated as the “Donor” (for purposes of establishing a Fund, exercising the advisory privileges of a Donor, and designating Advisors) with respect to funds contributed by a DAF, private foundation, limited liability or other entity affiliated with that Donor.
8. Acceptable Types of Contributed Assets: Assets are considered acceptable, at the sole discretion of Brown, depending upon Brown’s ability to support and administer the assets, Brown’s proposed responsibilities with respect to such assets, and other factors. Documentation is required for every contribution to Brown and may vary for different donation types. All donors must consult with Brown prior to the contribution of any asset (other than cash or marketable securities) to determine acceptability of and required documentation for such assets.
9. Contribution Processing Time: Processing time varies for different asset types, as the delivery of assets to Brown is determined by the firms holding the assets to be donated. During certain peak periods, such as late November until the last business day of the calendar year, contribution processing may take longer to complete and special deadlines may apply in order to ensure delivery and acceptance of securities before the December 31 deadline for claiming a charitable deduction for that year. Brown cannot guarantee that contributions made late in the calendar year will be processed before December 31 of that year.
10. Contribution Value: The Internal Revenue Code (the Code) mandates that each donor desiring to claim an income tax charitable deduction for a contribution must determine the appropriate valuation date for each donation and the fair market value of property donated on that date. Brown will not advise donors on the value of contributed property. For marketable securities, Brown will, however, provide an estimated value based on the high and low price of the security on the date of the gift. Contributions will not be effective, and cannot be valued, until Brown receives the assets and appropriate paperwork in good order. A donor may need to obtain a qualified appraisal to substantiate the value of a non-cash contribution and should consult with the donor’s tax advisors as to specific requirements.
11. Asset Acquisition Fees and Costs: Brown incurs costs for liquidating donated assets other than cash or cash equivalents. Trading fees, redemption fees, commissions, and SEC fees are generally deducted from the sale proceeds by the broker. Brokerage fees are not determined by Brown and may vary, depending on many factors. In addition, any bank fees and associated costs incurred or charged by Brown due to insufficient funds for a contribution or another reason will be assessed against the Fund, as will any taxes (including any unrelated business income tax) and other costs to Brown arising from the disposition of donated assets. The net proceeds from the sale of the contribution will be used to purchase units in the endowment or placed in the money market account. These costs do not impact the value of the donor’s gift for tax deduction purposes but do reduce the amount of the gift credited to the Fund.

Brown requires that an individual (and not an entity) be designated as Advisor for each Fund. The Advisor must have reached the age of majority in the Advisor’s state of residence and have the power to enter into binding contracts under applicable law.

1. Method of Making Grant Recommendations: All grant recommendations must be made and modified by the Advisor in writing, in a manner acceptable to Brown. If more than one Advisor is named, the recommendation must be unanimous. Grant recommendations can be received up until the last day of the month.
2. Advisors may make grant recommendations only during the maximum term (as defined in Section 3.9), and individual Donors may not make grant recommendations through any testamentary instrument, including through a will, a trust, or instructions to an executor or trustee.
3. Except as otherwise provided in Section 3.9.1, an individual Donor acting as Advisor may, by an instrument in writing (other than a testamentary instrument as described in Section 3.6B) signed by the Donor and delivered to Brown before the Donor’s death, make grant recommendations to be made after the Donor’s death. Any such grant recommendation for a post-death grant distribution are revocable or amendable by a subsequent Advisor, but only if in writing and received by Brown prior to the Donor’s death.  For Funds established by Spouses together as the “Donor,” references to the Donor’s death in this Policy will refer to the death of the survivor of the Spouses who established the Fund.
4. The Advisor may recommend grants to Brown from the Brown Portion of the Fund and from the Qualified Charity Portion of the Fund.
5. Grants to Endowed Funds at Brown: The University will honor donor intent for grant recommendations to Brown endowed funds consistent with the terms of the executed gift agreement.
6. Grants to Qualified Charities: The Advisor may recommend grants to a Qualified Charity other than Brown only from the Qualified Charity Portion of the Fund. If Brown determines that a recommended grant recipient is ineligible, Brown will provide the Advisor with the opportunity to recommend alternate grant recipients. Brown retains sole authority to determine the final amount of each grant made from the Fund and the grant recipient.
7. Special Purpose Grant Recommendations: An Advisor may recommend that a grant be used by the charitable organization for a “special purpose,” such as a building fund, research project, or in honor of a person. Brown will review the grant recommendation, including the special purpose, and, if approved, will inform the charitable organization of the recommended special purpose.
8. Identification of Donor: As part of a grant recommendation, an Advisor may choose to identify the grant distribution by: (a) name of the Donor and name of the Fund, and address to the recipient charity; (b) name of the Fund only; or (c) no Donor or Fund identification, in which case the grant distribution will be identified as recommended by a donor who wishes to remain anonymous. If the Advisor fails to designate how to identify the grant distribution with its grant recommendation, the Fund will be identified as the source of the grant. In no event will a grant distribution be identified as made by Brown.
9. Advisory Nature of Recommendations: Grant recommendations by an Advisor will be given careful attention. They are advisory only, however, and are not binding on Brown which, by law, has final authority to determine the use and grant distribution of all of Brown’s funds and assets, including the final amount of each grant distribution made from the Fund and the grant recipient.

1. Amount of Grant Distributions: Grant distributions may be made in any dollar amount up to the then-current balance of the Fund.
2. Grant Distribution Guidelines: For Brown and the Fund to maintain good standing with the IRS, Brown must ensure that all grant distributions from the Fund are for qualified charitable purposes and are consistent with applicable laws and regulations.
3. Charitable Mission Requirement: Grant distributions from Funds will be made only if they are consistent with Brown’s charitable mission.
4. Qualified Charity Requirement: Grant distributions from Funds will be made only to Qualified Charities.
5. Legally Binding Pledges: Grant distributions from Funds cannot be directed to fulfill legally binding pledges of the Donor, Advisor, or others except as allowed by federal tax rules then in effect.
6. Incidental Benefit: Grant distributions from Funds cannot be made for any purpose of providing, or to any organization that would provide, more than an incidental benefit to any Donor or Advisor, or to other disqualified persons (such as individuals or entities related to a Donor or Advisor). This includes, for example, grants that are used to purchase tickets to events attended by any Donor or Advisor.
7. Direct Assistance: Federal legislation prohibits a donor advised fund from making grants, loans, compensation or similar payments (including expense reimbursements) to Donors, Advisors, or other disqualified persons. Grant distributions from Funds cannot be used for direct assistance to any individual. A Fund can make donations to organizations that help individuals; however, a Donor or Advisor cannot direct the assistance to any particular individual through that organization.
8. Expenses: Expenses of any kind, whether from an event or a development activity, such as a special mailing, will not be paid from a Fund to anyone.
9. Political Activities: Grant distributions from Funds will not be made to support or promote political or legislative activities, or for lobbying purposes or to support political campaigns.
10. Insufficient Account Balance: Grant distributions will not be made if the Fund does not have a sufficient balance to cover the distribution.
11. Foreign Charities: Grant distributions are generally not made directly to foreign charities.  However, Brown may, in its sole discretion, approve grant distributions to United States-based 501(c)(3) charitable organizations with international missions.
12. Grant Recommendation Denied: If Brown determines that a grant recommendation is not consistent with the specific charitable purposes of Brown, this Policy, and the laws governing charities and donor advised funds, or if Brown determines that it will not approve the grant recommendation for any other reason, at its sole discretion, the Advisor will be informed, and Brown will provide the Advisor an opportunity to make an alternative grant recommendation.
13. Grant Recommendation Approved: If Brown exercises its discretion to approve a grant recommendation, the Advisor will be advised of the approval, and the grant distribution will be issued in the legal name of the recipient organization, directly to its verified address. Donors and Advisors may not deliver grant distributions, and grant distributions may not be issued to the attention of a Donor or Advisor. Grant distributions will be identified in accordance with Section 3.6 and are subject to all applicable laws and regulations.
14. Timing of Grant Distributions: Grant distributions will be issued approximately 8-10 weeks after the close of the month based on the unit value on the last day of the month the grant recommendation was made. This timeline may be significantly extended for June 30 month end.
15. Aggregate maximum monthly distribution: Regardless of any provisions in the Fund Agreement to the contrary, if the aggregate maximum monthly distribution threshold is triggered, currently $5 million per month across all funds in Brown’s Donor Advised Fund, the remaining distributions will be processed in the following months, subject to the maximum monthly distribution threshold.

Brown will not assess any start-up fees, grant distribution fees, or investment fees with respect to the Fund.

On or about December 1 of each year, Brown will provide a report on each Fund, describing all grant distributions from the Fund during the twelve months ending on the preceding June 30 and providing a valuation of the balance of the Fund as of June 30. Donors and Advisors may request information on the balance in the Donor’s and Advisor’s respective Fund at any time. With respect to any portion of a Fund invested in Brown’s endowment, Brown’s endowment contains many illiquid investments which are impossible to value precisely. Accordingly, with the exception of the audited June 30 value, endowment values are estimates only.

So long as a Fund created by a Donor remains open, the Donor will receive a copy of the annual report produced by Brown’s Investment Office. Additional reports may be made as determined by Brown.

Brown reserves the right to modify, amend, and/or terminate the DAF Program at any time. Brown reserves the right to amend this Policy at any time and for any reason. This right applies to existing Funds.

Brown will administer Funds in furtherance of its charitable and educational purposes and exemption under Section 501(c)(3) of the Code and in a manner that complies with the provisions of the Code for donor advised funds.

Brown provides no tax or legal advice and recommends all Donors consult with a tax or legal advisor regarding their Fund.

Brown reserves the right to take any actions at any time which, at its discretion, it deems necessary or desirable for the proper administration of any Fund, including to ensure that all grant distributions are used exclusively for charitable purposes in accordance with applicable law.

For a Fund created by a Donor and a Donor’s Spouse, Brown will honor the terms of any agreement signed by the Donor and the Donor’s Spouse regarding the handling of the Fund after separation, divorce, or termination of domestic partnership, civil union, or common law marriage, to the extent that the agreement does not contradict the terms or conditions of the Fund Agreement or this policy. In the absence of such an agreement, upon written notice of separation, divorce, or termination of domestic partnership, civil union, or common law marriage of the Donor and the Donor’s Spouse, Brown will divide the Fund into two equal parts, with each Spouse as the Donor of one portion.

In the event of an inconsistency between this Policy and any procedures, terms, or conditions appearing elsewhere in connection with any Fund, including but not limited to the Fund Agreement, this policy will prevail.

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