The Greater Kanawha Valley Foundation

The Greater PineBelt Community Foundation Policies and Procedures for Scholarship Funds

Scholarship Funds The Greater PineBelt Community Foundation (PineBelt Foundation) manages certain Fund Agreements that provide scholarship grants to individuals to enable the recipients to further their education. Grants made pursuant to such Fund Agreements shall be referred to as “Scholarship Grants." The Internal Revenue Service (IRS) considers scholarships “grants to individuals” and strictly regulates these grants. The following is a summary of our policies. You may access more detailed information on our website: www.PineBeltFoundation.org.

Procedures 1. All Scholarship Grants must be given for charitable purposes. 2. The pool of persons eligible to be considered for a scholarship must constitute a charitable class (i.e. be large enough so that an indefinite number of individuals may benefit). 3. The purpose of each scholarship must be determined when the Scholarship Fund is created. 4. A scholarship applicant cannot be related to a member of a scholarship fund and/or advisory committee nor can any immediate family member of a PineBelt Foundation employee and /or Director of said Foundation be eligible for a Scholarship Grant. For purposes of this policy, family members are defined as follows: parents, spouses, or lineal descendents (siblings, children, stepchildren, grandchildren, and great grandchildren whether by whole or half blood or by adoption). 1. There must be broad dissemination of eligibility requirements and deadlines for each scholarship fund (normally, eligibility requirements and deadlines will be listed on our Website).

Selection Criteria 1. Awarding a Scholarship Grant must be done on an objective, nondiscriminatory basis. The PineBelt Foundation is ultimately responsible for selecting scholarship recipients. The PineBelt Foundation will work closely in this process with Advisory Committees established by the Scholarship Funds. 2. Each Scholarship Fund shall have eligibility criteria to determine appropriate candidates for consideration. The selection criteria must be submitted to the PineBelt Foundation for approval. 3. Selection criteria must be appropriate to accomplish the purpose of the Scholarship Grant stated in the Fund agreement. The selection criteria must meet IRS standard guidelines and applicants must be ranked against the written selection criteria. Sample criteria may include: - Academic performance - Leadership or relevant experiences - Achievement or aptitude test performance - Residence of a specific geographic area (city, - Recommendations from instructors county, state) - Financial need - Graduate of a specific high school

of 4 Advisory Committees 1. Each Scholarship Fund shall have an Advisory Committee to review applications and make recommendations to the PineBelt Foundation. 2. Advisory Committee members may include the donor, community leaders with experience in the field, and other civic leaders. However, donors and/or family members cannot make up the majority of any Advisory Committee. 2. Individuals charged with recommending the scholarship recipients must not be in a position to derive a private benefit, directly or indirectly, from the scholarship process or from the selection of one potential grantee over another. 3. Every member of an Advisory Committee must disclose any familial or other close relationship with an applicant and must refrain from voting on these particular applicants. 4. Every member of any selection committee charged with the evaluation of candidates for Scholarship Grants shall adhere to the policies of the PineBelt Foundation including, without limitation, the PineBelt Foundation’s Conflict of Interest and Confidentiality Policy. 5. Any Advisory Committee should be composed of at least three (3) persons to evaluate applications and make written recommendations to the PineBelt Foundation. 6. A membership roster of the Advisory Committee, with a brief bio on each proposed member, must be submitted to the PineBelt Foundation annually for approval. 7. Updated copies of scholarship application forms, guidelines, and other printed materials related to the scholarship fund must be submitted to the PineBelt Foundation on a yearly basis. 8. Recommendations for award recipients, including name, address, phone number, proposed college, and grant amounts, must be submitted in writing to the PineBelt Foundation. 9. The Greater PineBelt Community Foundation Board of Directors delegates the position of approval of the selection committee to the GPCF Staff. The GPCF Staff will report to the Governance Committee the results.

Grant Distribution Policy 1. The PineBelt Foundation will notify recipients of a Scholarship Grant and each such recipient shall sign a Scholarship Acceptance Form that verifies the school they will attend and address where they can be contacted during the academic year. 3. Scholarships shall be made for a designated term, semester, or academic year. They will not be perpetual. 4. Scholarship Grants will not be payable to individuals but directly to educational institutions. If the student does not register, or withdraws in a timely fashion, the institution will be required to return the Grant to the PineBelt Foundation. 2. Unless otherwise provided in the Fund Agreement, each Scholarship Grant will be used only for: (1) tuition and fees required for the enrollment or attendance of the student at a qualifying institution;

of 4 (2) fees, books, supplies, and equipment required for courses of instruction at such an educational institution; and/or (3) room and board. 3. Reimbursement from a Scholarship Fund for fundraising expenses associated with such Fund is prohibited. Employer-Related Scholarships 1. Scholarship Grants cannot be used by the employer to recruit employees or to induce employees to continue their employment or otherwise follow a course of action sought by the employer. 2. Recommendations of award recipients must be made by an Advisory Committee consisting exclusively of individuals totally independent of the employer. 3. Any public announcement of the awards must be made by the PineBelt Foundation. 4. The scholarship program must impose identifiable minimum eligibility requirements. These requirements may not be lowered to give preference to employees or their dependents, and companies may not require employees to have worked full-time for more than 3 years in order to be eligible. Moreover, eligibility must not be related to any other employment-related factors, such as the employee’s position, services, or duties. 5. Selection of scholarship recipients must be based solely upon substantial objective standards that are completely unrelated to the employment of the recipients or their parents and to the employer’s line of business, such as academic performance, financial need, etc. 6. If a scholarship is renewable from one year to the next, renewal may not be denied because the recipient or parent has previously terminated employment with the employer. 7. A scholarship award may not be terminated because the recipient or the recipient’s parent terminates employment with the employer subsequent to the awarding of the scholarship regardless of the reason for such termination of employment. 8. Each recipient must have free choice of course of study and may not be limited to those that would be of particular benefit to the employer. 9. For a program that makes awards to employees or dependents of employees, there are two alternative percentage tests: (1) no more than 25% of employee’s children who met the eligibility requirements, applied for scholarships, and were considered by the selection committee, may receive scholarships; or (2) the number of scholarship awards given each year cannot exceed 10% of eligible employees or dependents of employees, whether or not they have applied. 10. Reimbursement from an employer-related Scholarship Fund for fundraising expenses associated with such Fund is prohibited.

Conflict of Interest & Non-Disclosure (provided separately to committee members)

1. The PineBelt Foundation has a detailed conflict of interest policy to ensure that no board or committee member with a relationship to a scholarship applicant influences decisions or the process regarding such applicant.

of 4 2. Any member of an Advisory Committee, the board, any committee of the board, and any staff members with a conflict may participate in the discussion, but may not vote on that application. 3. Under no circumstances is information concerning donors, prospective donors, grant applicants and grantees, or other confidential information to be revealed to third parties, except as is required by law. 4. On an annual basis, all Advisory Committee members must sign a conflict of interest form and non-disclosure statement (provided separately to committee members) indicating acceptance of and adherence to these policies. Signed forms must be returned to the PineBelt Foundation by November 1.

Confidentiality The protection of confidential business information is vital to the interests and the success of the PineBelt Foundation. Any information about the PineBelt Foundation and its donors, prospective donors, grantees and grant applicants, or other confidential information obtained as a result of working with the PineBelt Foundation should be considered confidential and should be discussed only as required in connection with the PineBelt Foundation’s work. The obligation to keep information confidential continues even after a volunteer ceases to volunteer with the PineBelt Foundation.

I have read and understand the aforementioned Scholarship Policy & Procedures for Scholarships.

Signature: Date: ______

Name (Please Print): ______

For full description of The PineBelt Foundation’s Scholarship Policies and Guidelines, please call the PineBelt Foundation at 601.583.6180

Approved by Governance Committee March 24, 2011