Temple Education Foundation Policy and Procedures

TABLE OF CONTENTS I II III IV V VI VII VIII IX X Mission, Goals, and Objectives Board Member Roles & Responsibilities Purpose and Responsibilities of Committees General Policies and Guidelines Office Policies and Procedures Conflict of Interest Policy Gift Planning and Acceptance Policies Finance and Investments Endowment Trust Grants and Scholarship Guidelines 1 P a g e

Section I Mission Statement, Goals, and Objectives 2 P a g e

Our Mission The Temple Education Foundation will develop community support to expand financial resources that enrich teaching and inspire learning and maximize opportunities for all students in the Temple Independent School District. Our Goals The Goals of the Temple Education Foundation (TEF) are: To support the educational objectives of Temple Independent School District To secure resources from the private sector and distribute them to support programs which provide enriched educational experiences which are not possible through public funding and which prepare students to become skilled, adaptable, knowledgeable, and productive adults; To serve as a catalyst for increased community involvement in our schools and; To ensure the long term viability and success of the Temple Education Foundation. Objectives Short Term (One Year) Establish all organizational aspects of TEF (structure, policies & procedures, etc.) Define and implement initial fundraising efforts and provide operational funds to ensure necessary program funding Long Term (Five Years) Secure major donors Connect with alumni Grow endowment fund to $2,000,000 Increase legacy giving (wills, insurance policies, etc.) 3 P a g e

Section II Boards Roles and Responsibilities 4 P a g e

Role Roles and Responsibilities The board members should have a genuine interest in the mission and goals of the Temple Education Foundation and a willingness to use their time, influence, financial resources, and specialized knowledge for the benefit of the students and staff who will be supported through the Foundation s work. Responsibilities Executive Committee Members shall: 1. Lead the organization 2. Lead meetings 3. Determine meeting agendas 4. Bring forth an annual slate of officers 5. Bring forth annual operating goals and objectives 6. Bring forth an annual budget 7. Bring forth any policies and policy amendments Board Members shall: 1. Serve as goodwill ambassadors for the Foundation and carry its message to groups and individuals 2. Cultivate and solicit prospects for charitable giving within the mission and goals established by the Foundation. 3. Attend meetings necessary for the effective functioning of the Foundation and ensure use of established policies and procedures 4. Contribute financially to the Foundation 5. Provide for the Foundation s long-term viability 5 P a g e

Section III Purpose and Responsibilities of Committees All Foundation committees will have at least two board members, one of whom will chair the committee. Additional members will be recruited from among school district staff and the community at large. Additional committees may be designated by the Board as the need arises. 6 P a g e

Foundation Committees Purpose and Responsibilities of Committees Program Committee Marketing and Events Committee Development Committee Finance & Governance Committee Program Committee Purpose The purpose of the Program Committee is to promote the Foundation and to develop a plan for increasing interest in and awareness of the Foundation s programs and activities. Responsibilities To accomplish the purpose of the Program Committee, the members shall: Award Innovative Teaching Grants for up to $5,000 to programs or projects that enhance student academic performance and support the objectives, goals, and initiatives of the Campus Improvement Plan. Grant student scholarships to graduating seniors for post-secondary education. Support district initiatives such as the staff campaign by sharing the stories of past recipients. Recognize high school seniors and the teachers who impacted their education and growth during an Academic Recognition Ceremony. Marketing and Events Committee Purpose The purpose of the Marketing and Events Committee is to promote the Foundation and to develop a plan for increasing interest in and awareness of the Foundation s programs and activities. Responsibilities To accomplish the purpose of the Marketing and Events Committee, the responsibilities of the member shall include, but not be limited to the following: Create branding Create marketing tools including brochures, donation cards, newsletters, and other necessary publications 7 P a g e

Temple Education Foundation Prepare letterhead and other stationary needs such as thank you cards for donations, memorial notification cards, and gift notification cards Prepare press releases as appropriate Develop public relations materials for promoting the Foundation Maintain social media and the Foundation s website Develop appropriate audio-visual materials for presentations and other activities of the Foundation Purpose Development Committee The purpose of the Development Committee is to solicit donations to support the Foundation s investment plans, endowment, and current programs. Responsibilities To accomplish the purpose of the Development Committee, the responsibilities of the members shall include, but not be limited to: Develop specific funding strategies Develop idea(s) for annual fund raising event(s) Develop structure to establish different levels of giving and recognition of the same Develop a plan for requesting funds from different groups in the community: o o o o o Individuals Business and Professional Groups Temple ISD Employees Temple ISD Families Temple ISD Alumni In cooperation with the Program Committee, plan annual fundraising events such as Big Blue Wave and STAR Pin Drive Compile and maintain a database of established and potential donors Provide contribution reports to the Board of Directors Purpose Finance and Governance Committee The purpose of the Finance and Governance Committee is to develop and recommend an investment strategy to the Foundation Board that will ensure the long term viability of the Foundation. Responsibilities To accomplish the purpose of the Finance and Governance Committee, the responsibilities of the members shall include, but not be limited to: 8 P a g e

Develop and implement the Foundation s annual budget Develop the Foundation s annual goals Develop, maintain, and enforce finance policies and procedures that will sustain and ensure the perpetuity of the Foundation Prepare and maintain a system for receiving and reporting donations to the Foundation Establish and maintain an effective accounting and reporting system to ensure continuation of tax-exempt status Develop an investment policy that will grow and ensure the perpetuity of the Foundation s endowment and various endowed funds Monitor all expenditures of the Foundation to ensure that they are within the constraints of the adopted budget Prepare and provide members packets, fliers, notifications, and written correspondence Prepare profit and loss statements, bylaws, MOUs, and testimonials 9 P a g e

Section IV General Policies and Guidelines 10 P a g e

General Policies and Guidelines Board Member Agreement Each Board Member must sign an annual agreement (See Addendum I, Attachment 1) Recruiting Board Members Caution should be exercised in asking elected officials or individuals perceived to be controversial to serve on the Temple Education Foundation Board of Directors or to hold an office. Background checks may be conducted. Annual Foundation Board Retreat An annual retreat will be held to review, monitor, and assess the status of the Foundation. Items on the agenda will include a review of the next year s budget, a draft copy of the five-year plan, annual goals and objectives, and development plans. Each committee chair or a designee will provide a report of the past year s achievements and goals for the next year. Budgets Each year the Finance and Governance Committee will ensure that a budget is prepared and taken to the Board for approval. The committee shall cause an annual audit of the annual budget. Five-Year Plan A Five-Year Plan, including goals, description of programs, planned funding levels, and projected funds needed, will be developed each year and reviewed at the Annual Retreat. It is the responsibility of the Finance and Governance Committee to provide leadership in the development of the Five-Year Plan. Political Campaigning Prohibition No officer, director, or employee of the Foundation can act on behalf of the Foundation in regard to any political campaign or event. Any breach of this policy will subject the officer, director, or employee to immediate dismissal. Nepotism Foundation board members must recuse themselves from approving grants and/or scholarships, if any relative has applied for Foundation funds. Report to Board of Trustees Oral and written reports shall be presented annually at the June meeting of the Temple ISD Board of Trustees. Awarding of Funds Funds will be awarded as outlined: Applications may be obtained at campus offices, Temple ISD Central Office, or Temple ISD s website. Staff applications and/or student scholarship applications shall be sent to the appropriate administrator for signature/comments. Applications shall be submitted to the Foundation by the designated deadline. 11 P a g e

Any application requiring technology shall be reviewed with the Temple ISD Director of technology prior to approval. Staff applications and scholarship applications shall be returned to the Foundation office. Cover pages shall be removed, and applications shall be forwarded to the Review Committee for approval/disapproval. The approved evaluation forms for application for each Foundation program area shall be used to evaluate the applications. Letters shall be written to recipients and to applicants whose requests were not approved with an explanation of why the request was denied. A date is selected for the awarding of funds on each campus and/or in the classroom of each recipient. Student scholarships shall be awarded at a special student event. When funds are awarded, each recipient shall receive a letter stating the amount for which the request has been approved, when funds shall be deposited, when the report and receipts shall be due, and a point of contact within the Foundation. Appropriate publicity of recipients of Foundation funds may be submitted to the local media and posted on the Foundation website. Distribution of Funds to School District Approved requests will be awarded as outlined: The District shall make all requests for funding in writing to include the purpose, amount of request, and date. If approved, the Foundation shall provide a written response to include the distribution schedule of funds, and the requirement that unexpended funds shall be returned to the Foundation. All funds must be used for the intended purpose. Distribution of Scholarship Funds Approved scholarships to students shall be awarded as outlined: The recipient shall receive a letter indicating the check will be sent to the college/university or sponsor of the workshop or course as indicated in the application. (See Addendum #.) If the scholarship is for a graduating senior, the recipient shall receive a letter to give to the registrar, and upon enrollment, the registrar s office shall send an invoice to the Foundation Office. (See Addendum #.) Upon receipt of the invoice or notification of enrollment, a check shall be sent to the college/university. A copy of the check and any supporting documentation shall be filed with the application in the appropriate Foundation. What does this mean??? Distribution of Innovative Teachers Grant Funds Approved Teachers Grant money to the teachers shall be awarded as outlined: Teachers receiving grants shall submit receipts to the TEF for reimbursement. 12 P a g e

Upon receipt of the invoice or receipt, a check shall be sent to the school. Temple Education Foundation A copy of the check and any supporting documentation will be filed with the application in the appropriate Foundation.??? Funds Received for Temple Education Foundation Funds received by the Temple Education Foundation from other Foundations and/or corporations will be disbursed to Temple ISD. The Temple ISD will be responsible for the accounting and recordkeeping of the funds and will provide the Foundation with an annual summary report. Bids for Board Members and Officers Liability Insurance The Foundation Board will secure bids for the annual renewal/purchase of Members and Officers Liability Insurance. The bids should be received sixty (60) days or by May 31st, prior to the date the policy goes into effect July 1st for each year when the new board takes office. Foundation Website A Foundation website will be maintained with current information. Specific information to be included on the website is as follows: History of the Foundation, Mission, Vision, Goals, Programs and Applications, Current Board Members, Fundraising Events, Donor Recognition, and how to financially support the Foundation. The website will also include the opportunity for donors to make donations online. The individual responsible for providing current information to update the website is the Chairperson for Marketing in collaboration with the Temple ISD Communication s Director. Media Relations Information regarding the Foundation shall be submitted by the Chairperson for Marketing, in collaboration with the Temple ISD Communication s Director, to the media, including television, newspaper, and radio. The individuals who may speak to the media on behalf of the Foundation include the Foundation President, Chairperson for Marketing, and the Temple ISD Superintendent. If a member of the Foundation Board receives a call from the media, the call should be referred to the individual(s) approved by the Board. Memorandum of Understanding If the Foundation receives any funds or services from the school district, a Memorandum of Understanding (MOU) will be developed to outline the District s expectations and the Foundation s responsibilities in receiving those services. The MOU will be approved by the School District Board of Trustees and the Foundation Board. Public Access to Records If the Foundation receives funds or services from the school district, then the Foundation is subject to the State s Public Information Act and agrees to abide by the Act. Record Retention and Document Destruction In fulfilling the Foundation s mission and business operations, the Foundation generates Business Records that must be maintained according to the rules listed below. Responsibility for managing retention, storage, and destruction of records shall be shared between the Chairperson, Secretary, Treasurer, and Chair of Finance and Governance. 13 P a g e

Foundation Historical Records. Business Records that relate to the Foundation s history, such as Articles of Incorporation, Bylaws, IRS Letter of Determination, IRS/Legal Correspondence and Documents, Annual Budgets, Year-End Financial Statements, Audit Reports, Meeting Minutes, Deeds, Mortgages and Bills of Sale, Checks for Significant Payments and Purchases, Current Contacts, Depreciation Schedules, Insurance Records, Retirement and Pension Records, Patents, Trademark Registrations and Copyrights, etc. are classified as Historical Records and must be kept in perpetuity. General Business Records. General Business Records are all other records that are not Foundation Historical Records. Unless advised by the auditor, these records must be maintained for seven (7) years from the date of creation. Record Destruction. Business Records exceeding the necessary retention period should be discarded as described below. Business Records containing sensitive or confidential information, such as check copies, personnel records, employment applications, and any similar records must be disposed of an appropriate and professional manner, such as shredding, to prevent the disclosure of any confidential information. Document Destruction in Event of Legal Proceeding. The Foundation has an obligation to preserve information relating to litigation, audits, and investigations. As such, the Foundation prohibits any employee or Foundation Board Member from altering, covering up, falsifying, or destroying any Business Record to prevent its use in an official proceeding. Employees and Board Members who fail to follow this policy could expose the Foundation to possible civil and criminal sanctions, and employees who violate this policy may be disciplined, up to and including termination of employment. In some circumstances, the Executive Director, President, or Chair of the Administration Committee may issue a legal hold, suspending the destruction of any records due to pending, threatened, or otherwise reasonably foreseeable litigation, audits, government investigations, or similar proceedings. No business Records specified in any legal hold may be destroyed, even if the scheduled destruction date has passed, until the legal hold is withdrawn in writing by the individual placing the hold. Record Retention. The Foundation will retain documents in accordance with Generally Accepted Accounting Practices and applicable laws. Storage and Retention Guidelines of Documents and Records In addition to the minimum retention requirements, the Foundation will adhere to IRD guidelines and the guidelines as outlined in the above section for storage and retention of Foundation documents and records. Responsibilities. Reasonability for the managing and retention, storage, and destruction of documents and records shall be shared between the Chairperson, Secretary, Treasurer, and Chair of Finance and Governance. The Secretary and Chair of Finance and Governance shall manage and store all financial records that must be kept in perpetuity. Physical Storage. Storage of documents and records will be physically maintained in the designated area of the Temple ISD central office and/or a storage facility as approved by the Board. 14 P a g e

Review and Management. The Secretary and Chair of Finance and Governance Committee shall conduct this review of records in their possession in accordance with the Secretary s schedule. Records subject to destruction shall be turned over to the Secretary who shall record the destruction of records. Update and Modification of Policy. The Executive Committee shall have authority to adopt changes and updates to the guidelines such as those published by the Internal Revenue Service. The Foundation Board of Directors shall annually review changes in requirements mandated by new or revised laws and regulations concerning records management, and the Board shall adjust this policy accordingly. 15 P a g e

Section V Office Policies and Guidelines 16 P a g e

Office Policies and Guidelines Foundation Files Files for aspects of the Foundation will be set up and maintained with current information. These files will be maintained in the Temple ISD Central Office and shall include, but not be limited to the following: Articles of Incorporation, IRS 1023 Application, IRS Letter of Determination, IRS Form 990 Minutes of all Board Meetings Financial Reports and Budgets Current List of Board of Directors Foundation Programs Five-Year Plan Endowment Agreements Programs and Allocation Applications Financial Records Copies of all financial records, dating back to inception of the Foundation, will be maintained and stored on the Foundation computer software (Quick Books). All financial records will be backed up. If hard copies are kept, they will be stored in the Temple ISD Central Office. Endowment Files Original files regarding endowments should never be taken from the Foundation office. These files may be viewed or copied as needed, but due to the original document context, the files should remain in the office at all times. A charter must accompany all endowments signed by the donor and the Foundation Chairperson. Donor List A current mailing list and a master list of donors will be maintained, updated, and stored on the appropriate computer software. Staff and/or Board Member Purchases Staff and/or Board members may make purchases for approved items for the office. All purchases must be within the Board approved budget and checks must be signed by a Board approved signatory. Debit or credit cards are not permitted. Personal Property The Temple Education Foundation assumes no liability for personal property used or left on the Foundation s premises. 17 P a g e

Section VI Conflict of Interest Policy 18 P a g e

Definition Conflict of Interest Policy A conflict of interest is defined as an activity or interest on the part of a Temple Education Foundation Board member /Officer that may directly or indirectly interfere with the mission, policies and procedures of the Temple Education Foundation. The foundation functions with the help from volunteers who serve on its Board. Because of the varied interests and backgrounds of the Board members, a situation may arise in which an individual has competing interests or loyalties that might affect, the judgment or conduct of an individual associated with the Foundation. Thus, conflicts of interests are natural and sometimes inevitable. Purpose The purpose of this Conflict of Interest Policy is to assure the highest level of ethical conduct of persons involved in the governance of the TEF in all that pertains to the Foundation, and to avoid public perceptions and financial consequences detrimental to TEF that could arise from the misuse, or perception of misuse, of an individual's position or influence. This conflict of interest policy is not designed to eliminate or exclude relationships and activities that might create a duality of interest, but rather to encourage transparency and careful deliberation in those cases where conflicts or perceived conflicts may arise. This policy applies to all the board members of TEF and any staff with significant decisionmaking authority Examples A conflict of interest may exist if an interested person: has a business or financial interest in any third party dealing with the Foundation. holds office, serves on a Board, participates in management, or is employed by any third party dealing with the Foundation. has an unfair advantage in business dealings, buying or selling goods or services where vendor is related to, or is an entity owned by, one or more family members of the individual involved in the buy or sell process receives gifts from any third party on the basis of his or her position with the Foundation (other than occasional gifts valued at no more than $50, or if valued at more than $50, the gift is made available in a team space or common area for others to share - e.g., fruit baskets, boxes of candy.) All other gifts should be returned to the donor with the explanation that the Foundation policy does not permit the acceptance of gifts. No personal gift of money should ever be accepted. engages in any outside employment or other activity that will materially encroach on such person's obligations to the Foundation; compete with the Foundation's activities; involve any use of the Foundation's equipment, supplies, or facilities; or imply the Foundation's sponsorship or support of the outside employment or activity. Disclosure 19 P a g e

As much as possible, conflicts of interests should be avoided. All the TEF members have an obligation to disclose any conflict of interest or a possible perceived conflict of interest to the Chairman of the TEF Board. When any conflict of interest is relevant to a matter under consideration or requiring action by the Board of Directors, or committee thereof, the interested person shall not be present during any discussion or vote on the matter. However, that person shall provide the Board or applicable committee with any and all relevant information on the particular matter. The minutes of the meeting of the Board of Directors or committee thereof shall reflect that the conflict of interest was disclosed, that the interested person was not present during discussion or decision on the matter, and did not vote. The treasurer and auditor should be two different people. A third party will complete form 990. Any contract payment to officers or board member has to be approved by the. Exception to the Conflict of Interest Policy can be made upon full disclosure and unanimous vote of the Board. A copy of this conflict of interest policy shall be furnished to all the officers and board members presently serving the Foundation. The policy and its application shall be reviewed annually for the information and guidance to the Board members and Officers, each of whom has a continuing responsibility to scrutinize their transactions and outside business interests and relationships for potential conflicts and make such disclosures as described herein. Each Board member shall annually sign a Conflict of Interest Policy Disclosure Statement which affirms such person: a. Has received a copy of the conflicts of interest policy, b. Has read and understands the policy, c. Has agreed to comply with the policy, and d. Understand the Temple Education Foundation is charitable and in order to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. Adopted September 15, 2014 20 P a g e

Section VII Gift Planning and Acceptance Policy 21 P a g e

Gift Planning and Acceptance Policy Acceptance TEF reserves the right to decline any financial commitment, gift, or bequest, as well as the right to determine how a gift will be credited and/or recognized. Gifts of securities will be acknowledged to the donor at the value received into the account, as of the day received. All securities will be sold immediately upon receipt into the account. Restricted and Unrestricted Gifts Unrestricted gifts shall be encouraged unless: 1) the donor indicates that he or she is only willing to make a restricted gift or 2) the option of a restricted gift will otherwise significantly increase the size of a gift or the chances of obtaining a gift from the donor. In drafting instruments for the gift of restricted funds to TEF, donors and their advisors shall be encouraged to use language that would permit application of the gift to a more general purpose if, in the opinion of the board, the designated purpose is no longer feasible. All receipts from unrestricted bequests, annuities, charitable remainder trusts, or charitable lead trusts shall become a part of the general endowment, unless the executive committee determines a particular unrestricted gift of the type enumerated in this paragraph should be deposited in a different account. Administrative Expenses Donors are responsible for obtaining their own appraisals for tax purposes of real property or tangible or intangible personal property being given to TEF and for any fees or other expenses related to such appraisals. TEF retains the right to obtain its own qualified appraisals of real property to tangible or intangible personal property being offered as a gift at its own expense. TEF will acknowledge receipt of gifts of tangible personal or real property in accordance with the federal tax law and will sign any IRS form or other documents necessary for the donor to obtain a tax deduction for such gifts, so long as such acknowledgement does not entail valuing the gifts. Prospective donors shall be responsible for their own legal, accounting, appraisal, transportation, and other fees related to TEF. Professional Advice Prospective donors shall be strongly encouraged in all cases to consult with their own independent legal and/or tax advisors about proposed gifts, including tax and estate planning implications of the gifts. No representative of TEF shall provide legal or tax advice to any donor or prospective donor. Upon request, representatives of TEF may provide to the donor sample bequest language for restricted and unrestricted gifts to ensure that a bequest is properly designated. TEF may also provide, upon request, IRS-approved prototype trust agreements for review and consideration by the donor and his or her advisors. The sample nature of such language or agreements shall 22 P a g e

be clearly stated on all documents given to the donors, and donors shall be advised that consultation with their own legal advisors is essential prior to use of such standard language or specimen agreements Confidentiality All information about donors and prospective donors, including but not limited to their names, the names of their beneficiaries, the nature and amounts of their gifts, and the sizes of their estates shall be kept confidential by TEF and its representatives, unless the donor grants permission to release such information. All requests by donors for anonymity will be honored, except to the extent that TEF is required by law to disclose the identity of donors. Authority The Board Chair or an officer designee is authorized to enter into planned gift agreements on behalf of TEF and to execute any and all documents necessary or appropriate to consummate such agreements. Any exceptions to these gift acceptance policies may be made only in exceptional circumstances, on an individual basis, and shall require the approval of the Executive Committee of the Board. These gift acceptance policies may be amended by the Executive Committee, upon recommendation from the Foundation s Development Committee. 23 P a g e

Section VIII Finance and Investment 24 P a g e

Finance and Investment INVESTMENT POLICY STATEMENT Purpose This Investment Policy Statement (IPS) is to assist the Trustees ( Trustees ) of the Temple Education Foundation, Inc., Endowment Trust (the Trust ) and the Temple Education Foundation, Inc. (TEF) in effectively supervising, monitoring, and evaluating the investment options of the Trust. Its purpose is to describe how investment options are determined. The IPS details a suggested investment structure for the Temple Education Foundation, Inc. Endowment Trust, a recommended model portfolio and prudent investment options for the Trust. This structure includes various asset classes, portfolio allocation, and acceptable ranges that, in total, are intended to produce an appropriate level of overall diversification and risk over the investment time horizon. General Objectives This document defines the nature of the relationship of how the Trustees will manage the investment process. The Trustees will provide an Investment Objective and managed account solutions that strive to minimize risk while generating a level of return sufficient to meet the stated investment objectives of the Trust. The Trustees as Fiduciaries recognize and acknowledge that some risk must be assumed in order to achieve long-term investment objectives, and that there are uncertainties and complexities associated with investment markets. Roles and Responsibilities Plan Fiduciaries The Plan Fiduciaries primary responsibilities include: Selecting and monitoring Investment Managers Approving the investment objectives and policies of the portfolio Directing Investment Managers to make changes regarding policy, guidelines, objectives and specific investments on a timely basis Exercising all rights, including voting rights, as are acquired through the ownership of securities, or delegating same to Investment Managers Reviewing investment statements, and performance reports Recommending changes to this Investment Policy Statement The overriding goals in selecting the investment options that will be made available under the Plan are to: 25 P a g e

1. Ensure that the investment of Trust assets will be made for the sole and exclusive benefit of TEF and its educational and charitable purposes. 2. Ensure that the investment options be sufficiently diversified to minimize the risk of large losses; 3. Ensure that the investment options are selected and monitored using the skill, care and diligence under the circumstances then prevailing that a prudent person, acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; 4. Ensure that the investment options made available under the Trust are allowed in accordance with the provisions of the Trust document and, if the provisions of this Investment Policy conflict with the provisions of the Trust itself, the provisions of the Trust shall control, and; 5. Ensure that Investment Managers utilize asset classes which have different risk and return characteristics, and which, in the aggregate, enable the Trust to achieve a portfolio with aggregate risk and return characteristics at any point within the range of the Investment Objective. In order to achieve these goals, the investment options utilized should be at a reasonable and acceptable level of cost determined by comparing such investments to comparable investments taking into account risk, return and other factors in determining comparable investments. Investment Manager Must be a Bank Trust Department, an Insurance Company, or an Advisor registered with the SEC under the Investment Advisers Act of 1940 or their state s securities commission (an RIA ). If utilizing an RIA, Trustees must also utilize an independent Custodian for the safekeeping of the portfolio s investments and the settlement of purchase and sale transactions. Must acknowledge their fiduciary status in writing. Any professional providing advice must do so pursuant to a written agreement. Should demonstrate their understanding of the Trust s objectives by reviewing this IPS and acknowledging such in writing. Investment Option Criteria Modern Portfolio Theory and Efficient Market Hypothesis are key concepts in the development of this IPS. The Nobel Memorial Prize in Economic Sciences was awarded to three noted financial economists for their work in developing Modern Portfolio Theory as a portfolio management technique. One of the tenets of Modern Portfolio Theory is that the portfolio should be viewed in its entirety. By properly diversifying the portfolio, overall risk can be reduced. A low risk and low return investment may be used to counterbalance a riskier investment with greater potential for reward. Ideally, the end result is a balanced portfolio with a potential for greater return and lower overall risk than the specific assets in the portfolio. The entire portfolio is considered in judging the prudence of investments rather than considering a single investment in isolation. The Efficient Market Hypothesis, has significant implications when it comes to portfolio construction. The Efficient Market Hypothesis states that while the returns of different securities may vary, as new information becomes available, these variations are inherently random and 26 P a g e

unpredictable. Especially important, are the beliefs that one cannot expect to profit by timing the market (attempting to buy when the market is low and then sell when the market is high) or by picking individual securities that will do better than the market as a whole. Generally, there are three methods of investing: Market Timing, Security Selection and Asset Class Selection. Studies suggest that the most effective of the three methodologies is Asset Class Selection. Asset Class Investing One approach to investing trust assets is to invest in assets funds that reflect the various segments of the overall market, such as Large Cap Value or Micro Cap stocks. Asset class funds are mutual funds that own all or most of the stocks or bonds represented in a given sector of a market. Asset class funds attempt to emulate a particular market segment by acquiring a representative percentage of that market s stocks. These funds typically have significantly lower management costs and lower turnover rates than the average of all funds. They may attempt to add value that can be gained by economies of scale, but not through forecasting markets. Studies have shown that asset class fund portfolios have outperformed more than 75% of active stock fund managers over periods of ten years or more. Asset class diversification implemented with mutual funds is an academically sound approach for virtually any investor to pursue. By investing in a wide range of asset classes which tend to move in different cycles, it is possible for an investment manager to lower the portfolio s risk. Money managers who utilize an asset class approach try to capitalize on both the random nature of the equity markets and their high level of efficiency. Asset class investing is supported by numerous empirical studies covering years of professionally managed portfolios. There is a body of academically sound research available supporting modern portfolio theory. The Trustee believes that, it is possible to increase investment returns while lowering investment risks. Current Investment Objective of the Trust Currently, the investment objective made available under the Trust is as follows: Growth in the value of the portfolio and income are of approximately equal importance. Between 40-60% of the portfolio will usually be invested in equities (i.e. quality stocks) to generate growth, and an equivalent percentage may be invested in fixed income securities (i.e. high-grade bonds). The fixed income portion is used to produce a moderate income stream and to reduce overall risk. This strategy entails assuming at least moderate risk. This portfolio is suitable for investors seeking long-term appreciation in value, who are willing and able to endure losses during unfavorable market periods, which have historically extended from several months to several years. 27 P a g e

Signatures of Acceptance: Temple Education Foundation, Inc.: Chair Person: Print Name: Date: Temple Education Foundation, Inc. Endowment Trust: Trustee: Print Name: Date: Investment Manager: Print Name: Date: 28 P a g e

Section IX Endowment Trust 29 P a g e

ENDOWMENT TRUST OF THE TEMPLE EDUCATION FOUNDATION INC. This Declaration of Trust is made, this day of, 2013, by the Board of Directors, herein also called the "Board," of the TEMPLE EDUCATION FOUNDATION, INC., a Texas non-profit corporation, with its principal offices in the city of Temple, Bell County, State of Texas, herein also called "TEF" I. NAME WITNESSETH: The trust hereby created shall be known and designated as the TEMPLE EDUCATION FOUNDATION, INC., ENDOWMENT TRUST herein called the "Trust." II. PURPOSE The purpose of the Trust is to devote and apply the property vested in the Trust and the Trustees and the increases and income derived therefrom, without profit or personal gain to any person (except as such is allowed by law), exclusively for the charitable or educational purposes for which TEF has been founded, and, in furtherance of such purposes to provide financial support and assistance to TEF, and its successors, under such plans as may be formulated from time to time by the Board of TEF and its successors, to expand financial resources that enrich teaching and inspire learning and maximize opportunities for all students in the Temple Independent School District, herein called TISD, including scholarships for students graduating from Temple High School and attending any accredited college, university, or approved postsecondary institution. No substantial part of the activities of the Trust shall be the carrying on of propaganda or otherwise attempting to influence legislation, and the Trust shall not participate in or intervene in any political campaign on behalf of any candidate for public office. The Trust shall not carry on any activities not permitted to be conducted or carried on by an organization exempt under Section 50l(c)(3) of the Internal Revenue Code and its regulations as they now exist or as they may hereafter be amended or by an organization, contributions to which are deductible under Section 170(c)(2) of such Code and Regulations thereto, as they now exist or as they may hereafter be amended. III. DIRECTION AND CONTROL The direction and control of the Trust and all of its assets is hereby vested in its trustees, herein also called the "Trustees," duly serving and acting under the terms of this Declaration. The Trustees shall be composed of: A. Group A, which shall be composed of the Immediate Past Chairman of TEF, who shall serve for the year of his office as Immediate Past President of TEF; B. Group B, which shall be the Superintendent of Temple Independent School District (TISD); and, 30 P a g e

C. Group C, which shall be composed of three (3) persons, who shall not be members of the TISD Board of Trustees:; who shall each serve for two (2) years; each of whom shall be nominated by the Executive committee of TEF and shall be elected by a majority vote of the Board; and who shall serve staggered terms. For the first year of this Trust, the Executive Committee shall nominate and the Board shall elect one (1) person to serve for only one (1) year; and the following year, and the years thereafter, the position of that one year Trustee shall be filled for two-year terms. If a Trustee resigns or becomes unable to fulfill his or her duties hereunder, the Board or the President of TEF may request the Executive Board of TEF to nominate and the Board may elect a successor to complete the unexpired term of the Trustee, which successor shall have the same qualifications necessary to fill the vacant position, except for Group A, which may be filled by any otherwise qualified person. Trustees may be elected to succeed themselves or to fill other unexpired terms, if they are otherwise eligible; but, no person shall hold more than one position as Trustee at a time. IV. INITIAL TRANSFER OF ASSETS The Board of TEF has assigned, transferred and delivered, and does hereby assign, transfer and deliver, unto the Trustees the property described in Schedule A, attached hereto and incorporated herein by reference, as the initial corpus of the Trust. The Trustees acknowledge receipt of the assignment, transfer and delivery of such property and agree to hold, administer, disburse and manage the same, subject to the terms and conditions of this Declaration, as the same is now constituted or shall hereafter be amended. Trustees anticipate that the Board of TEF and third parties will, from time to time, assign, transfer and deliver to Trustee, additional property, including, but not limited to, real and personal property, cash, securities, and other items of value, as additions to the corpus or to the other assets of the Trust herein created. Subject to its right to determine whether to accept or reject any such proffering of such property as being consistent with the purposes for which TEF and this Trust has been created and within the capabilities to appropriately administer, preserve, control and manage such property, the Trustees agree to accept, hold, administer, and distribute the property and the proceeds and increases therefrom, subject to the terms and conditions of this Declaration. V. DISTRIBUTIONS GENERAL PURPOSES OF THE TRUST: It is the general purpose of this Trust that it is created for the purposes of receiving gifts and donations of a perpetual or long-term nature to better sustain TEF, and that gifts and donations of short-term or of a depleting nature for operating purposes of TEF should be directed through TEF itself. 5.1 The Trustees shall organize the assets of the Trust into categories for the appropriate and convenient management thereof; such categories may include separate subaccounts for gifts designated by the donor for specific purposes and with restrictions or special provisions, acceptable to TEF and Trustees. Notwithstanding restrictions to the contrary imposed by donors of gifts with special conditions, those gifts and assets received without special conditions as to their use by the Trust or TEF, may be added to the general corpus of the Trust. After the end of each fiscal year of the Trust, Trustees shall determine the Available Net Income of the Trust as a Unitrust amount, as that term is defined in the Texas Uniform 31 P a g e

Principal and Income Act, of not less than three nor more than five percent per year of the net fair value of the trust s assets, valued at least annually. Distribution of the Unitrust amount reasonably apportions the total return of the Trust and shall be considered a distribution of all of the income of the Trust and shall not be considered a distribution of any of the corpus of the Trust. 5.2 Except as specifically provided otherwise under the terms of separate Sub-accounts, for endowed scholarships and grants managed pursuant to Article VI, any distributions from Available Net Income shall be solely within the discretion and province of the Trustees. The manner of the distribution shall likewise be within the sole and sound discretion of the Trustees, including amounts which may be distributed by outright grant, grants for specific purposes, grants subject to special conditions, and for student scholarships. 5.3 The Trustees shall be empowered hereunder to invade the corpus of the Trust in one situation, and one situation only. In the event that Trustees have distributed to TEF, not including Sub-accounts, all Available Net Income, all other reasonable sources of philanthropic and commercial assistance have been exhausted and the Board of TEF shall certify to the Trustees, upon a vote in which not less than two-thirds concur, that TEF is in such dire financial condition that, but for the advancement of funds from the corpus, TEF will be in extreme peril of its continued ability to operate in a meaningful manner, then the Trustees may consider the written and documented request of TEF for an amount not to exceed Twenty-five percent (25%) of the general corpus of the Trust. Whether any amount is granted shall be in the sole discretion of the Trustees, as well-as the manner of such distribution which may be by outright grant, by grant for specific purposes, by grant subject to special conditions or by loans for such term, at such rate and upon such conditions as shall be reasonable in the sole discretion of the Trustees. VI. SUB-ACCOUNTS If a prospective donor wishes to establish a sub account to help carry out the purposes set forth in Article II above and to be held under the terms of this Agreement, such donor may do so in if the terms of the sub-account are agreed to by the Trustees and approved by the Chairperson of the TEF Board of Directors (or any other person or committee to which such authority is delegated by such Board). Any such sub-account must have an initial contribution of at least Twenty-Five Thousand and NO/100 Dollars ($25.000.00) or such higher amount as may be set by the Trustees after consultation with the Board of Directors unless otherwise allowed by the Trustee. Additions to an existing sub-account may be in any amount. The terms which the Trustee may agree to with regard to the operation and use of a separate sub-account shall be limited to (a) terms relating to the amount or percentage of income and/or principal to be expended from the sub-account or how income will be calculated, (b) terms related to the participation of the donor or donors representative with the committee determining scholarship or grant recipients, but only if such terms are approved by the Board of Directors, (c) the criteria for awarding any scholarship or grant or (d) other operational terms which the Trustees deem practical from an operational and expense standpoint. The Trustees shall not agree to any terms unless it determines that they would be practical to carry out, would be in keeping with the purposes and other provisions of this Agreement and would not jeopardize the charitable nature or tax status of the Endowment or any of its sub-accounts. Any agreement regarding a subaccount must be in writing, be signed by both the Trustee and the donor establishing the fund and be approved in writing by the Chairperson of Board of Directors (or any other person or 32 P a g e

committee to which such authority is delegated by such Board). A copy of any such agreement shall be provided by the Trustees to any person proposing to donate to a specific sub-account. The terms of a sub-account may be changed after it has been established, provided that the change (a) is made in a written document signed by the Trustees and by the original donor or someone designated by such donor to have such power and approved in writing by the Chairperson of the Board of Directors any other person or committee to which such authority is delegated by such Board), (b) is consistent with the purposes of the Endowment as set forth in Article II above and (c) is subject to all provisions of this Agreement. VII. TRUST POWERS In the administration of the Trust estate, including the general corpus and any special funds or accounts therein, the Trustees shall have all the powers, rights, authorities and prerogatives of the Texas Trust Code, as it now reads and exists or as it may hereafter be amended. Furthermore, the Trustees, by majority vote, may elect to secure the services of one or more advisors, managers, accountants, attorneys, trust departments of national or state banks or other professionals to assist them in the administration and management of the Trust. For their services to the Trustees hereunder, Trustees shall be entitled to pay reasonable fees commensurate with the duties and responsibilities of the service received, taking into account the nature and value to the Trust, as well as the time and work involved, and which fees shall be commensurate with similar fees charged by providers of services. VIII. ANTICIPATORY ASSIGNMENT Neither TEF, nor any beneficiary, nor any other person, persons, entity, corporation, or government entity, shall have the power or right to anticipate, pledge, assign, claim, sell, transfer, alienate, hypothecate or encumber its interest in this Trust, in any manner, whatsoever; nor shall any such interest in any manner be liable for, or subject to, the debts, liabilities or obligations of TEF or any beneficiary or claims of any sort against TEF or beneficiary. IX. ACCOUNTINGS The Trustees shall cause to be kept a strict accounting of all transactions concerning the Trust, and shall render statements to the Board of TEF, reflecting receipts and disbursements, assets and liabilities of the Trust, any amounts able to be designated as Available Net Income, and otherwise truly reflecting the condition of the Trust, at least annually, and within a reasonable period of time upon written request of the Board of TEF, directed to the Chair of the Trustees. The fiscal year of the Trust shall be the same as the fiscal year of TEF. X. ORGANIZATION OF THE TRUSTEES Not less frequently than annually, or upon the call of the then current chairman of the Trustees or upon the call of any two (2) Trustees, the Trustees shall meet to conduct the business of the Trust, as required herein. A quorum to conduct the business of the Trust shall consist of not less than three (3) Trustees; voting in absentia is not permitted. At the meeting which it shall designate at its annual meeting, the Trustees shall elect from the Trustees who shall serve for the fiscal year, one who shall serve as the Chair and one who shall serve as the Secretary- Treasurer. The Chair shall serve as the executive officer of the Trust, shall be responsible for correspondence on its behalf and shall conduct the meetings. The Secretary-Treasurer shall be 33 P a g e

responsible to keep the books and records of the Trust, including the permanent records of the actions and deliberations of the Trustees. The permanent records of the Trust, including the books and records, minutes of the meetings, and records of its actions, shall be kept in the offices of TEF. Any Trustee shall be given access to review such books and records at any time the offices of TEF shall be open for business. XI. AMENDMENTS FOR TAX EXEMPTION COMPLIANCE Such modifications and amendments which may be necessary or desirable for the Trust to obtain or to maintain its status as an exempt organization under section 50l (c)(3) of the Internal Revenue Code and related as the same now exist or may thereafter be amended, shall be made by the Board of TEF or the Trustees, as appropriate. Any other modifications or amendments to this Trust may be made by the Board of TEF only with the consent and approval of a majority of the Trustees, at a duly called meeting for the consideration of same at which not less than three (3) of said Trustees were present. XII. PERPETUAL NATURE OF TRUST 12.1 It is the intention of the Board of TEF that this Trust shall be perpetual. However, in the event, the Trust is terminated under its own terms or by operation of law, then the principal and all accumulated but undistributed income of the Trust, shall be distributed to the Temple Education Foundation, Inc., or its duly constituted and successor in interest, should the same be duly qualified as a charity under Section 501(c)(3) of the Internal Revenue Code and its related regulations, as the same are now constituted or may hereafter be amended, for the purposes for which TEMPLE EDUCATION FOUNDATION, INC., has been created, described above and in more detail in the Articles of Incorporation or Charter of same, among the public of the City of Temple, Bell County, State of Texas. No part of the Trust s estate thereby distributed shall be expended for the purpose of conducting or carrying on any activities not permitted to be conducted or carried on by an organization exempt under Section 501(c)(3) and related regulations, herein referenced, or for any purposes, contributions to which are not deductible under Section 170(c)(2) of such Code and regulations, as the same now exist or may hereafter be amended. 12.2 If for any reason TEMPLE EDUCATION FOUNDATION INC., shall not be in existence when this Trust is terminated, then upon termination of the Trust, the Trustees shall distribute the principal, together with all accumulated but undistributed income, to such other exempt organization or organizations under Section 501(c)(3) of the Internal Revenue Code and related regulation, as herein referenced, for the purposes of carrying on one or more of the activities of a community organization, promoting and supporting educational, intellectual and benevolent purposes benefiting students of TISD as may be determined in the sole discretion of the Trustees. 12.3 In the event the Trustees shall fail or shall otherwise be unable to act in these matters, then the most senior District Judge in and for Bell County, Texas, who shall reside in the city of Temple, Texas, (or, absent such a District Judge who shall reside in the City of Temple, Texas, then the District Judge of the 27 th Judicial District) shall appoint a sufficient number of qualified persons to fulfill the purposes of this Trust. However the Trustees shall exercise their authority herein in their sole discretion and their decision shall be final and conclusive in such matters. 34 P a g e

The above and foregoing constitutes the act and deed of the Temple Education Foundation, Inc., by action taken by its Board of Directors at its regular meeting thereof, at its offices in the City of Temple, Bell County, Texas, on the date above stated, at which a duly constituted quorum of which directors were present and voting, and a majority of which Directors did vote to take this action, including the giving of evidence thereof by the Secretary of said corporation and the attesting thereof by the Chairperson of said corporation; to certify which, witness our hands. TEMPLE EDUCATION FOUNDATION, INC By: Secretary Attest: Chairperson DATE APPROVED: November 18, 2013 35 P a g e

Section X Grants and Scholarship Guidelines 36 P a g e

Innovative Teaching Grants Timeline First Day of School Last Friday of October Third Monday of December Last Week of February Spring Semester Last Week of May August Grant Applications extended to TISD Staff www.tisd.org/grants Grants due to the Superintendent s Secretary s Office by 5:00 P.M Bounty Bus! Delivery of Checks to Grant Winners All funds expended for grant projects OR Extension of funds deadline requested Grant projects implemented by last week of March Survey Monkey TEF Annual Luncheon Teacher Grant Showcase Innovative Teaching Grant Grant Cover Page (with original signatures), Application and Budget must be delivered to: Superintendent s Secretary by 5:00 P.M. on the due date 37 P a g e

Innovative Teaching Grants Guidelines for Grant Applications Purpose: Innovative Teaching Grants are designed to encourage, facilitate, recognize, and reward innovative and creative instructional approaches to accomplish program objectives. The Temple Education Foundation offers all Temple ISD staff an opportunity to apply for grants to fund innovative programs or projects that support higher levels of student learning. The grants must enhance student academic performance and support the objectives, goals, and initiatives of the Campus Action Plan. TEF prefers to fund new projects; however, consideration is given to existing projects that need to be updated and restructured. Who Can Apply: TISD employees involved in the instruction of students or direct support services may apply as an individual or team of individuals. The application must be signed by the campus principal. What We Will Fund: Grants will fund classroom materials; parent involvement programs; or any other activity that supports student academic achievement. Grants requesting funds for travel, food, employee salary, or school field trips will not be considered. General requests for textbooks will not be granted because of Texas textbook laws; if your project requires these types of materials explain fully the need and why they are not currently available through TISD. Award of Funds: Grants of up to $5,000 can be awarded to individuals, campus teams, departments, and/or district initiated programs or projects. The number of awards will depend on funds available from TEF. If a grant recipient(s) changes grade levels,, schools, or school districts the grant funds will stay with the grade and school on the original grant application. Please, note that if any grantee sells or markets materials produced or developed from funds awarded under the TEF grant process, the grantee must reimburse TEF either the amount of the grant or the amount received from the sale, whichever is less. Selection Criteria: Preference will be given to new projects, as opposed to existing projects. The grants will be reviewed on the following criteria: the degree to which the proposal is clear and logical represents a creative and innovative approach to teaching develops programs that would expand the existing curriculum 38 P a g e