United States Naval Academy Foundation

Gift Agreement

Gift Agreement made this 12 day of March 2004 by and between The Class of 1957 {hereinafter referred to as the DONOR} and the United States Naval Academy Foundation, a 501 (c) (3) organization as defined in the United States Internal Revenue Code {hereinafter referred to as the FOUNDATION}.
Gift: The DONOR irrevocably commits to make a charitable gift (the “Gift”) to the FOUNDATION in an amount equal to (i) the entire balance held in account 6657 (Class of 1957 Naval Heritage Chair) which account had a balance of $2,084,000 as of June 30,2003, plus (ii) all payments collected by the DONOR on existing pledges to account 6657 or on future pledges to the new fund to be established with the Gift as described in paragraph 2 below.
2. Limitation as to Purpose: The DONOR makes the Gift to enable the FOUNDATION to establish “The Class of 1957 Chair in Naval Heritage Fund” (the “Fund”) to create and support a Chair in Naval Heritage at the United States Naval Academy (the “Chair”). All of the assets comprising the Fund will be employed by the FOUNDATION solely for that purpose. The Foundation acknowledges that the purpose of the Gift is as stated in the attached Memorandum of Agreement Between the USNA Class of 1957 and the USNA Department of History.
Restriction as to Spending: The Fund will be treated as a “temporarily restricted” asset for the FOUNDATION’S accounting purposes. The DONOR desires that the Fund support the Chair for a minimum period of twenty (20) years. Consistent with that desire, the parties will monitor the growth of the Fund and jointly determine the earliest feasible date of commencement and the amount of annual expenditure in support of the chair. Once that has been determined, the FOUNDATION may, as of right, make disbursements of principal and interest from the Fund for the purpose stated herein.
4. Investment of the Fund: The Foundation will invest the assets of the Fund in a manner consistent with its standing investment policies.
Fees: The DONOR acknowledges that the FOUNDATION will charge against the Fund an annual administrative fee of one and one-half percent (1.5%), to be paid from the Fund assets in quarterly installments. Additionally, all future gifts and pledge payments to the Fund will be subject to a five percent (5%) fundraising fee to be paid to the FOUNDATION at the time such gifts are received. The foregoing fees may be amended from time to time at the discretion of the FOUNDATION’S Board of Directors.
6. Additional Gifts: The DONOR reserves the right to increase the FUND through additional gifts and shall permit others to contribute through individual gifts, bequests, or through other gift vehicles, and all gifts so designated shall be subject to the terms and conditions of this agreement.
7. Recognition: Appropriate recognition shall be accorded the Donor for this gift. To honor the DONOR, and to express the appreciation of the FOUNDATION and the U.S. Naval Academy, appropriate publicity in the form of news announcements, both internal and external, will be made with prior approval of the DONOR of all language to be used in such publicity. The individual(s) who are retained to fill the Chair position shall be known as holder(s) of “The Class of 1957 Chair in Naval Heritage” at the U.S. Naval Academy.
8. Reporting and Periodic Review: The FOUNDATION shall provide an annual report to the DONOR summarizing the status of the Fund and expenditures over the prior (12) months. At intervals no less frequent than every three (3) years, representatives of the DONOR, the FOUNDATION, and the U.S. Naval Academy will meet to jointly review and discuss the status of the Fund and the Chair. Such meetings will serve as a forum for recommendations regarding changes to the future direction, funding or administration of the Fund and the Chair.
9. Quid Pro Quo: The FOUNDATION attests that the DONOR has received no substantial goods or services in return for the commitment evidenced by this Agreement. The parties understand that this Agreement does not confer upon the DONOR any authority to influence the policies or programs of the FOUNDATION.
10. Changed Conditions: The Fund will be protected from obsolescence and impracticability. Should the purpose for which the Gift was given become, in the judgment of the parties, obsolete, impracticable, incapable of fulfillment, then the Fund will be distributed to support such other purpose or purposes as are mutually determined by the FOUNDATION and the DONOR to be closely related to the original purpose of the Gift.
11. Rescission, Amendment and Succession: The parties reserve the power, by joint action, to rescind or amend this Agreement but only by supplemental writing signed by each. This Agreement binds the successor of the parties.
12. Governing Law: This agreement shall be interpreted in accordance with the laws of the State of Maryland.
13. Acknowledgement by the Academy: The Academy, by signature of its authorized representative below, hereby joins in this Agreement, for the sole purpose of acknowledging the terms of this Agreement, the purpose of the Fund, and the limitations or expenditures.
IN WITNESS WHEREOF, the parties to this Agreement enter it voluntarily and have affixed their signatures:
By: /S/ George Watt ............................................By: /S/ D. S. Cooper
Print Name: George P. Watt Jr. .........................Print Name: David S. Cooper
Title: President / CEO ........................................Title: President
By: R. C. Parsons
Print Name: Robert C. Parsons
Title: Deputy for Finance

2nd Amend - Class Gift