SANDHILLS KIWANIS FOUNDATION, INC.

WHAT THE FOUNDATION IS

The sand hills Kiwanis Charitable Foundation, Inc. was incorporated in 1990 by the Kiwanis Club of the Sandhills, Moore County, North Carolina to accept by gift or bequest funds to support all of the charitable endeavors of the Club: to ensure that all expendable funds are used in compliance with applicable restrictions and charitable program goals: and to manage prudently any funds given to the Foundation. Bylaws have been adopted, the Foundation has been incorporated, and a 501-3-C tax exemption has been obtained.

WHAT THE FOUNDATION DOES

There are two principal areas which are the responsibility of the Foundation. They are (1) Annual Funds and (2) Endowment Funds. Annual Funds are collected and totally expended each year for support of charitable programs designated by the Board of Directors. Generally, Annual Funds are generated by fund raising projects of the Kiwanis Club of the Sandhills. Endowment Funds are permanent fund, the principal of which is not expendable. Only the income derived from principal investment may be expended (usually annually) for the purposes of described in the document creating each Endowment Fund.

HOW DECISIONS ARE MADE

The Sandhills Kiwanis Charitable Foundation, Inc. Executive Committee is responsible for preparing a preliminary annual budget showing estimated funds available for supporting charitable causes and projecting proposed expenditures which reflect hteprogram and area interest of the Kiwanis Club of the Sandhills and Kiwanis International Inc. The budget is presented to the Board of Directors for their review, recommendations and approval.

Decisions about the investment of permanent funds are made by a subcommittee of the Foundation which reports these decisions to the Board of Directors for their approval.

FUNDS EXPENDED ANNUALLY

Over the past years about twenty different causes have been supported in varying amounts with funds available for annual distribution. Amounts have varied from year to year and cause to cause. Generally however, support has been directed to programs assisting the youth of Moore County in their growth and development. Annual expenditures in each of the past several years, excluding special projects have averaged about $21,000.

PERMANENT ENDOWMENT FUNDS

The principal in June 2005 of the Endowment Funds held by the Sandhills Kiwanis Charitable Foundation, Inc. totals approximately $492,000. Income from these funds is about $8,500. Please note that these amounts are approximations and change as holdings increase and market values change.

Unrestricted

Sandhills Kiwanis Charitable Endowment

Established in 1990 with unrestricted gifts for endowment from members of the Kiwanis Club of the Sandhills and from friends of Kiwanis. The principal is to be invested and income earned is to be spent to support charitable endeavors as determined by the Board of Directors of the Foundation.

Restricted

Moore County Educational Endowment

Established in 1990 with a transfer of funds from the Moore County Educational Foundation to be used to provide solar ships for secondary school graduates in Moore County. It has been determined that income from this fund will be used to provide annual scholarships to winners of the Junior Builder’s Cup.

Garner and Picquet Endowment Fund

It has been determined that income from this fund will be used to provide annual scholarships to winners of The Picquet Music Scholarship.

John Williams and Peggy Kirk Bell Endowment Fund

Originally established in 1991 as the John Williams Memorial Endowment fund by friends and admirers of the late John W. Williams, a coach at Pinecrest High School, and renamed to the John Willey Williams and Peggy Kirk Bell Endowment Fund in 2005, the income from this fund is to be used to provide scholarships to deserving graduates of Pinecrest High School to assist them in pursing their studies at the post high school level.

SPECIAL PROJECTS

From time to time the Kiwanis Club of the Sandhills undertakes projects which seek to meet special needs in the Sandhills region. In 1992-1994, the club through its Charitable Foundation raised about $200,000. To be used to create a Children’s Learning Center in which a Head Start program could be supported. A building and an adjacent play area have been completed and now support Head Start classes for 48 children, ages two to five.