Glossary of Terms

Advised fund is a designated fund that the fund founder may advise the Board as to the beneficiary whenever grants are to be made. The Board retains final approval of the grantee.

Agency fund is a designated fund with and subject to the by-laws of the Brown County Community Foundation, Inc. as the name beneficiary.

Designated funds are funds that are set up by a donor or group of donors for the benefit of a specific 501 (c) organization or for a specific scholarship program. The earnings from such designated funds must be used only for the designated purpose.

Discretionary funds are funds with no designated beneficiary. The earnings from these funds may be used at the discretion of the Board of Trustees of the BCCF. These are the monies that are administered by the Grants Committee of the BCCF.

Endowment funds are donations, which are invested permanently.

Evaluation Dates: Each fund will be evaluated at the end of each calendar quarter: 1st quarter ends March 31, 2nd quarter ends June 30, 3rd quarter ends September 30, and 4th quarter ends December 31. All funds received by the last business day of the quarter will be considered as received in that quarter.

Fees: Include but are not limited to investment management fees,security and custody fees, brokerage fees and administrative contributions assessed by the Foundation.

Field-of-Interest fund is a designated fund with a charitable intent rather than a specific charitable organization(s) as named beneficiary.

Founding Date: Shall be defined as the date a new fund meets both of the following two criteria:

The Board of Trustees has approved the fund agreement. The assets of the fund are at least equal to the minimum value for Named funds as defined by the Board of Trustees.

Fund is a pool of donor contributions.

Heritage funds are an accumulation of permanent contributions that generate income for use in making discretionary grants. It can be used as a depository for contributions which donor(s) intend to grow until it reaches the minimum value required to become a Named fund.

Historic Value: The aggregate value in dollars of the sum of the following:

The value of original donation that started the endowment fund,

The value of each subsequent donation to the fund,

The value of additions that may be made to the fund, at the discretion of the

Board of Trustees, from time to time.

Holdings Based Style Analysis is a “bottom-up” approach in which the characteristics of a portfolio over a period of time are derived from the characteristics of the securities it contains at various points in time over the period. The choice of characteristics depends on the purpose of the analysis. For example, if the purpose is to describe a portfolio in terms of a set of quantitative style characteristics such as size and value/growth orientation, the prescribed characteristics of each security need to be calculated and then aggregated to the portfolio level.

Inflation: The increase in the Consumer Price Index.

Invested Pass-Through Funds are pass-through funds that are subject to market risk.

Minimum value is the minimum value a fund must achieve to become a Named fund.

Named fund is an endowment fund that is at or above the required minimum value and has a Board approved fund agreement.

Net real return on investments: Net return minus inflation.

Net return on investments: Total return on investment minus fees.

Perpetuity donation: A donation given in perpetuity is a gift that is invested and held forever, with the income earned used to support the donor’s intended activities. The term “perpetuity” means something that lasts indefinitely or is everlasting.

Operating Endowment Fund is a type of designated fund with the BCCF designated as the beneficiary. The BCCF may use the earnings from these funds for operating expenses.

Operating Fund is the money that BCCF may use for managing its business. These funds are generated from management fees, income from the operating endowment funds, Lilly grants, and donations.

Pass-Through funds are not endowed. They are funds that the BCCF agrees to administer for a Brown County group. The group must be non-profit but might not have 501 (c) 3 approval.

Reserve Fund: The reserve fund is that portion of an endowment fund that receives the net return on investment attributed it and from which all grants and fees are paid. The Board of Trustees may, at its discretion, make additions to this fund.

Returns Based Style Analysis (RBSA) is a quantitative approach to determining a manager’s investment style and evaluating its consistency. The effective asset mix can be determined by comparing actual portfolio returns to the returns of indices (given a sufficient length of portfolio history and a robust mathematical technique).

Scholarship funds are a type of designated fund that are to be used for scholarships as defined by the specifications made at the time the fund was created.

Total Endowment Value: Each endowment fund is made up of two parts, the Historic Value and the Reserve Fund.

Total return on investments: Interest plus dividends plus realized and unrealized capital appreciation minus realized and unrealized capital depreciation.