; Agriculture and Forestry University Endowment Fund

ARICULTURE AND FORESTRY UNIVERSITY ENDOWMENT FUND

Part 1: Preamble

Nepal's Agriculture and Forestry University(AFU) is the premier institution connecting scholars and learners from diverse backgrounds to pursue education, research and extension in various spheres.

AFU Endowment Fund is established to create an enduring legacy of support for current and future generations AFU scholars and students. The endowment is designed to exist in perpetuity and will have no terminal date.   This document outlines the terms and conditions governing the establishment, deployment, administration, and legal considerations of the AFU Endowment Fund ("Fund").

Part 2: Purpose of Fund

The primary purpose of the Fund is to provide sustained financial support to advance the mission and activities of AFU, including but not limited to education, scholarships, research, programs, infrastructure, extension and community engagement, entrepreneurship, etc.

Part 3: Source of Fund:

The Endowment Fund will secure donations from various sources –  Contributions from gifts/donations to the endowment may emanate from multiple sources such as domestic institutions, the private sector, philanthropic families, government/quasi-government organizations, University alumni, and not-for-profit agencies located within Nepal and outside Nepal. AFU Endowment Fund will accept donations from all of the above sources.

Contribution to the endowment fund can be made in any currency of preference by the donor.  Where ever/ whenever available, the Endowment will strive to secure fiscal benefits (such as full or partial tax exemption) for contributors within the framework of Nepal fiscal ( tax) regulations. The contribution by various donors may be unrestricted to be deployed at the will of the AFU Executive Council for broad objectives of the university or restricted contributions that are specific to goals and notified by the donor.  Any surplus in restricted contribution at the end of the accomplishment of the indicated mission may be transferred to unrestricted endowment with the contributor's consent.

Some of the indicative restricted endowment contributions are:

  • Endowed chair contribution: A theme-based endowed chair contribution will facilitate cutting-edge research, the development of innovative programs, and the organisation of events, conferences, and initiatives related to the chosen theme by the faculty designated as Endowed Chair. The endowment will foster a vibrant academic ecosystem, encourage interdisciplinary collaboration, and advance knowledge in the thematic area, with the active involvement of students led by the endowed faculty.
  • Student scholarships for Undergraduate students, Master’s students, and PhD students: Rooted in diversity and inclusivity, these scholarships span a spectrum of criteria, from academic merit to financial need and underrepresented backgrounds, ensuring equitable access to higher education. They embody the universities' dedication to fostering intellectual excellence, nurturing future leaders, and championing societal progress.
  • Research Endowments: These endowments serve as vital catalysts for pioneering research initiatives, empowering faculty and research students to delve into the frontiers of knowledge, tackle complex global challenges, and drive transformative discoveries. Research endowments enable AFU to attract and retain top-tier researchers and contribute to scientific breakthroughs and technological advancements.
  • Endowment for seminars/memorial lectures: These endowments facilitate the engagement of students and faculty to facilitate knowledge exchange within and outside Nepal.

Other categories of endowments include:

  • Unrestricted Endowment: Unlike restricted funds, donors of unrestricted endowments do not limit how AFU can use the funds. Consequently, AFU has the flexibility to allocate the funds, principal contribution and accruing earnings toward any of its objectives or needs that is recurring or non-recurring expenditure in nature.
  • Term or Temporarily Restricted Endowment: Where the donor specifies Term or Temporarily Restricted Endowment, only residual funds will be pooled in Unrestricted Endowment after meeting the total objectives of the purpose for which the donor has contributed. This fund type is not immediately available for the organisation's day-to-day operations. The donor contribution agreement will specify the specific purpose for which the contribution is made and the triggering event,  after which the residual funds can be considered unrestricted endowment, aligning with the donor's intentions.
  • Quasi-Endowment: Quasi-endowments are board-designated endowment funds where the contributory specifies the fund's intended purpose broadly. While these funds do not have permanent restrictions, the governing authority retains the flexibility to terminate or modify restrictions as needed, making them generally more adaptable than restricted endowment types.

Part 4: Utilization of Funds: The Fund shall be deployed according to the Organization's strategic priorities for contributions made towards unrestricted endowment. For restricted endowment contributions, the deployment will be as agreed by AFU and the donor.

Part 5:  Investment Strategy: AFU shall adopt a prudent investment strategy to preserve and enhance the Fund's value over time. Investment decisions will be made by AFU Executive Council by proper consultation with the investment management professionals, guided by the principles and guidelines of AFU Endowment Fund.

The investment approach will encompass traditional and alternative asset classes to diversify the portfolio and manage risk effectively within the legal framework prevalent in Nepal. Fixed investments will form a consistent strategy component to ensure stability and predictable returns. Additionally, the Organization is open to exploring external investment opportunities that align with the Fund's objectives and risk tolerance. The Organization shall adopt a long-term investment perspective. Investment decisions shall prioritise sustained growth and preserving the endowment's real value over time.

For emphasising strategic diversification, a portion of the Fund, specifically  not exceeding 10%, may be allocated to risk-related investments, subject to a mutual investment approach ( such as contribution to a low risk mutual fund). This approach ensures that risk-related investments are undertaken in collaboration with external partners who share the commitment to prudent risk management and potential returns.

Part 6: Administration of Endowment Fund

6.1 Bank Account:  AFU Executive Council decided and opened bank account and its details are as follows:

Bank Name: Global IME Bank

Branch: Rampur Branch

Adress: Bharatpur Metropolitan City -15, Rampur Chitwan

A/C Type: Current Account Corporate

A/C No.: 20501010005128

SWIFT CODE: GLBBNPKA

A/C Holder: Endowment Fund Agriculture and Forestry

6.2 Fund Utilization: AFU Executive Council is responsible for the overall fund  management, distribution, and utilization. .

6.3 Reporting: AFU shall provide periodic annual reports to the donors and stakeholders, detailing the performance of the Fund, allocations, and the impact achieved. Transparency in reporting ensures accountability and fosters trust.