Blacksburg United Methodist Preschool
75th Anniversary Endowment Policy
Adopted [Date]

I. Purpose

The Blacksburg United Methodist Preschool 75th Anniversary Endowment (the "Endowment") is established to provide long-term financial sustainability and support for the mission of Blacksburg United Methodist Preschool ("BUMP").

The Endowment shall support:

Tuition Assistance/Scholarships: Ensuring access for families regardless of financial means.
Operational Support: Supplementing the annual budget for teacher retention and program excellence.
Program Enhancements: Funding new curriculum, technology, and learning materials.
Facility Maintenance: Preserving the learning environment and making long-term capital improvements.

II. Administration and Governance

The Fund shall be overseen and administered by the BUMP Board.

The Board shall:

Approve all Fund policies
Review performance annually
Ensure compliance with Virginia nonprofit and Uniform Prudent Management of Institutional Funds Act ("UPMIFA") standards

III. Structure of the Fund

A. Fund Classification

The Endowment may consist of:

Permanent (True) Endowment Funds: Contributions designated by donors to remain in perpetuity.
Board-Designated Endowment Funds (Quasi-Endowment): Funds designated by the Board to function as endowment but which may be reallocated by formal Board action.

B. Minimum Gift Levels

Minimum gift to establish a named endowment: $50,000
All gifts, regardless of size, are welcome and will be pooled unless otherwise restricted.

IV. Investment Policy

The Endowment shall be invested with a long-term horizon and in accordance with prudent investor standards.

A. Investment Objectives

Preserve purchasing power of principal
Generate stable annual returns to support spending
Maintain diversified asset allocation

B. Asset Allocation

The portfolio shall be diversified across asset classes, potentially including:

Equities
Fixed income
Cash Equivalents
Other diversified instruments

Asset allocation targets shall be reviewed annually.

C. Investment Management

The Board may:

Utilize professional investment managers
Invest through the United Methodist Foundation
Engage a fiduciary advisor

All investment decisions must comply with UPMIFA standards.

V. Spending Policy

The Endowment is intended to exist in perpetuity.

A. Annual Distribution

Annual distribution shall not exceed 4-5% of a rolling three-year average market value (or as determined by the Board).
Distributions shall be used only for the purposes consistent with the mission of BUMP.

B. Use of Funds

Permitted uses include:

Tuition assistance and scholarships
Teacher professional development
Curriculum enhancement
Facilities improvements
Program innovation
Other operating expenses

Funds may not be used for routine operating deficits unless approved by supermajority Board vote.

VI. Gift Acceptance Policy

The Endowment may accept:

Cash
Securities
Bequests
IRA Qualified Charitable Distributions
Donor-advised fund grants
Planned gifts
Real property (subject to review)

All restricted gifts must:

Be consistent with the mission of BUMP
Be approved by the Board
Include written documentation of donor intent

If a restriction becomes impractical or inconsistent with mission, the Board may modify the restriction in accordance with Virginia law and UPMIFA.

VII. Named Endowments

Donors contributing the minimum threshold may:

Establish a named fund
Designate support for specific purposes (e.g., scholarships, teacher excellence)

Naming opportunities may also be offered in honor or memory of individuals.

The Board reserves final approval of naming recognition.

VIII. Transparency and Reporting

The Preschool shall:

Provide an annual Endowment report
Disclose fund balance, investment performance, and distributions
Communicate impact stories to stakeholders

IX. Protection of Principal

In general:

Original gift principal shall not be invaded.
In extraordinary financial circumstances, principal use may occur only by:
- Two-thirds vote of the Preschool Board
- Legal review to ensure compliance with UPMIFA

X. Amendment and Dissolution

This policy may be amended by:

Majority vote of the BUMP Board with written documentation recorded in Board minutes

Any amendment must preserve the intent of maintaining long-term financial sustainability.

In the event that BUMP ceases to operate, the assets of the Endowment shall be transferred to the Blacksburg United Methodist Church General Endowment or a successor 501(c)(3) organization with a similar mission, as determined by the BUMP Board.

Blacksburg United Methodist Preschool 75th Anniversary Endowment Policy Adopted [Date]