Pension Protection Act of 2006 (H.R.4)

  • The Solano Community Foundation retains exclusive legal control over all fund assets.
  • All contributions to the Solano Community Foundation continue to be tax exempt if no goods or services are/were received in return.
  • Only grants recommended to qualified public charities/nonprofit organizations with current 501c3 determination letters from the IRS may be approved by the SCF Board of Directors.
  • Donors, advisors, or related parties are prohibited from requesting or using advised funds to secure benefits in the form of grants, loans, compensation, or similar payments.
  • Donors, advisors, or related parties are prohibited from requesting or using advised funds to fulfill memberships or pledges, to pay for attendance or for admission to events or social functions, or for anything that provides benefits to the donor, advisors, or related parties.
  • Donor advised funds may not be used to make grants to individuals, including grants directly to individuals and grants to organizations for the benefit of specified individuals.

Rules for Scholarship Funds

  • All scholarship recipients must be selected by a committee, and it must be a competitive process.
  • The donors' advice is limited to his/her role of serving as a non-voting selection committee advisor.
  • The donors may not appoint a majority of the committee or otherwise control the committee directly or indirectly.
  • The selection committee must consist of a minimum of three individuals; two of them must be disinterested parties.
  • The Foundation Board must annually review selection criteria and procedures.
  • No applicant for a scholarship from a component Fund may be in any way related to the Donor(s) or agent(s) of the Donors. Similarly, the Donors or Donors’ agents must not have any involvement in the financial or personal affairs of any applicant.
  • The Solano Community Foundation Board of Directors must approve the nominated members of the committee. Donors may make recommendations of committee members. These do not have to be named individuals, but instead may be titles or positions of individuals (e.g. school principal, guidance counselor, music teacher.)
  • The Foundation Board must approve the eligibility and application process, and the procedures for selecting recipients, to insure they are objective and nondiscriminatory.
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