Policy on the Use and Classification of Endowment Funds

Policy: The purpose of the Endowment Fund for the Fairhope Educational Enrichment Foundation is to support the mission and to provide funds for the sustained growth of the Foundation . The mission of the Fairhope Educational Enrichment Foundation is to promote and enrich educational opportunities for all Fairhope public school students.

Description of the Endowment: Contributions received for the Endowment Fund will be deposited in the account designated. The principal is to be held in perpetuity. Any interest which accumulates may be used as needed. Income from the Endowment Fund may be designated by the donor or can be left unrestricted.

Disbursement of Interest from Endowment Fund: Unrestricted income can be used for any purpose as approved by a majority of a quorum of the FEEF Board of Directors. Restricted income can be used for restricted purposes designated by the donor as approved by a majority of a quorum of the FEEF Board of Directors.

Naming an Endowment: A named endowment fund can be established and named by the donor with a contribution of $50,000 or more.

Restrictions Placed on an Endowment: FEEF will accept a restricted donation for an Endowment Fund if the restrictions are approved by a majority of a quorum of the FEEF Board of Directors.