The term "historic dollar value" refers to the total fair value of an endowment fund at the time it was established, along with any donations made to the fund afterward. It also includes any accumulations that are added to the fund as specified in the gift instrument. The institution's determination of the historic dollar value is considered final if made in good faith.
This term is primarily used in the context of endowment funds, which are often established by institutions such as universities and charities. Understanding the historic dollar value is crucial for managing these funds, as it impacts financial reporting and compliance with laws governing institutional funds. Users can manage related forms and processes through resources like US Legal Forms, which provide templates drafted by legal professionals.
Here are a couple of examples of abatement:
Example 1: A university establishes an endowment fund with an initial donation of $100,000. Over the years, additional donations of $50,000 and $25,000 are made. The historic dollar value would be $175,000, reflecting the total contributions.
Example 2: A charitable organization receives a bequest that directs specific accumulations to be added to its endowment fund. These accumulations are included in the historic dollar value at the time they are added (hypothetical example).
| State | Key Differences |
|---|---|
| California | Specific regulations on endowment fund management and reporting. |
| New York | Additional requirements for transparency in fund usage. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Differences |
|---|---|---|
| Endowment Fund | A fund established to provide ongoing financial support. | Historic dollar value is a component of an endowment fund's financial assessment. |
| Fair Value | The estimated worth of an asset based on current market conditions. | Historic dollar value includes specific contributions at the time they were made, while fair value fluctuates with market conditions. |
If you are managing an endowment fund, it is essential to keep accurate records of all contributions and accumulations. Consider using US Legal Forms for templates that can help you document these transactions effectively. If you encounter complexities, seeking professional legal advice may be beneficial.
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