III. Grants and Contributions Policy

A. Grants and Contributions in General

1. Contributions and grants to organizations of the types described in Article Six of the Articles of Incorporation shall be made by the Fund out of each of its endowments upon approval by the Board. Contributions may be made to projects, organizations, or programs having the characteristics set forth in Chapter C of Article Six in the Fund's Articles of Incorporation. No contribution may be made from any endowment to any project, organization, or program having the characteristics set forth in Chapter F or Chapter G of Article Six in the Fund's Articles of Incorporation.

2a. Contributions and grants out of the General Endowment annually shall equal at least one-half of the net operating income of the General Endowment, where the net operating income is defined as the sum of the investment income and all gifts designated by their donors as operating gifts minus the operating expenses. The total of such contributions shall not be greater than the net operating income minus one dollar. The net annual income of the General Endowment that is required to be distributed shall be given away as contributions and grants either in the year in which it is received or in the following year.

2b. All net income of the Special Endowment shall be given away as contributions and grants either in the year in which it is received or the following year.

B. Evaluation Process

1. The Board shall evaluate each organization from which a request for a contribution or grant has been received by the Fund, based on the Board's decision as to the appropriateness of a contribution by the Fund from one of its endowments. There shall be two parts to the evaluation process. The first part shall be the tracking and assignment of an evaluation status by the Fund. The second part, for those organizations which have been evaluated, shall be the assignment of the organization to a category for each endowment. The status of an organization requesting a contribution or grant may be: (a) not currently evaluated; (b) insufficient information for evaluation; (c) evaluation not considered appropriate; (d) evaluated. The categories to which an organization may be assigned when it is evaluated may be: (a) ineligible for contributions; (b1) not selected for contributions due to financial concerns; (b2) not selected for contributions due to eligibility concerns; (b3) not selected for contributions for other reasons; (c) eligible for contributions but not currently nominated; (d) eligible for contributions and currently nominated; (e) eligible for contributions and permanently nominated. An organization shall have a single evaluation status assigned by the Fund that applies to all endowments. An organization that has been evaluated shall have a separate evaluation category assigned for each endowment.

2. The President shall maintain a list of all organizations that have either requested contributions from the Fund or received contributions from the Fund. This list shall, at a minimum, identify the name, last known address, evaluation status, categorization in each endowment, total amount if any contributed from each endowment, and date of the last report on each organization. The President shall maintain records by categories of incoming requests for contributions, except from organizations which have been categorized as ineligible by all endowments. The President shall retain the actual incoming mail or other contribution requests from organizations which are not currently evaluated. The list shall also identify organizations that have sent recent requests for contributions that have not been evaluated.

3. At each annual or quarterly meeting of the Board~~, and at any special meeting called for the purpose of considering or approving contribution requests~~, the President shall ~~present~~ more specifically provide the following lists of organizations ~~from which requests have been received~~:

(a) ~~those which are not currently evaluated~~organizations that are not evaluated from which recent requests for contributions have been received and are in need of evaluation;

(b) those which are eligible but not currently nominated for contributions from each endowment;

4a. The President shall appoint a special committee to advise the Board on categorization of any organization which is not currently evaluated from which a request for a contribution has been received, and may appoint a special committee to advise the Board on categorization of any other organization. The evaluation by the Board of any organization that has requested contributions will normally be done on the advice of an ad hoc committee of one Trustee. The President shall request Trustees to agree to be appointed to advise and report to the Board on each organization that has recently requested contributions that is not currently evaluated, and shall include the organization on the list of organizations that are not currently evaluated. The President may appoint an ad hoc committee to advise and report to the Board on any other organization.

4b. The President may, but is not required to, drop any organization from the list of organizations from which recent requests for contributions have been received, if no Trustee has agreed to advise on categorization of the organization within nine months after the request was received.

5. An ~~special~~ ad hoc committee to advise on categorization may request additional information from the organization, and shall present a written report including a recommendation as to category for contributions from each endowment. The Board shall consider the committee's written report and shall assign the organization to a category for contributions from each endowment, which may be any of the categories provided in subsection 1, above.

6. At any annual or quarterly meeting of the Board, ~~or at any special meeting called for the purpose of evaluating or categorizing organizations,~~ the Board may change the categorization of any organization.

7. At any annual or quarterly meeting of the Board, ~~or at any special meeting called for the purpose of considering or approving contribution requests~~, the Board may instruct the Treasurer to make a contribution from an endowment to any organization which was, immediately prior to that meeting, categorized by that endowment either as eligible and currently nominated, or as eligible and permanently nominated. By a two-thirds vote of the Trustees present the Board may authorize a contribution to an organization in any other category.

8. Any organization which was eligible and currently nominated for a contribution from an endowment to which a contribution is approved shall automatically be recategorized as eligible but not currently nominated for a contribution from that endowment.

9. Any organization shall be automatically recategorized as not currently evaluated after expiration of an ad hoc committee report. An ad hoc committee report shall expire after five years after its presentation to the Board unless the Board shall specify a shorter period for its expiration; however, a report that an organization provided insufficient information for evaluation shall expire in three years.

10. The Board shall not approve more than one contribution from any endowment at any quarterly meeting, nor more than two contributions from any endowment at an annual meeting. By a two-thirds vote of the Trustees present, the Board may authorize additional contributions.

C. Controversial Organizations

The fact that an organization may be considered controversial shall not be a material factor in deciding whether contributions should be made to it if the organization is otherwise qualified under the Articles of Incorporation and the By-laws to receive contributions from the Fund.

D. Activities Eligible for Contributions

Contributions may be made from the General Endowment or Special Endowment for:

1. cooperation between and among potentially hostile groups.

2. economic, social, industrial, or political reform.

3. equality of educational opportunity.

4. civil liberty or human freedom.

5. rehabilitation of persons suffering from a special handicap.

6. economic self-sufficiency of a disadvantaged group.

7. research likely to lead to social improvement.

E. Activities Eligible for Contributions from the General Endowment

Contributions may be made from the General Endowment for:

1. information available to voters (but only if not oriented in favor of any privileged group).

2. lobbying for legislation in accordance with the objectives of the Fund.

F. Organizations Ineligible for Contributions

No contributions shall be made from the General Endowment or the Special Endowment for:

1. military operations of any sort.

2. illegal activities, except for limited tests of constitutionality.

3. music or art, as such.

4. religion or strictly moral reform, as such.

5. relief of individual suffering (except as provided in D-5 and D-6, above.)

6. medical research.

7. profit-seeking business.

8. resistance to change (including most `ecology' and `environmental' groups).

9. any advantaged or privileged group.

10. any political action committee (PAC), partisan political campaign fund, or other organization receiving contributions from donors and distributing them to candidates for elective office.

11. any organization which lacks well-defined goals or objectives, or whose objectives are inconsistent with those of the Fund, or which, if successful, would not further the general welfare.

12. any organization which appears more concerned with fund-raising than with any program.

G. Organizations Ineligible for Contributions from the Special Endowment

No contributions may be made from the Special Endowment to:

1. any organization which engages in lobbying or attempts to influence legislation;