Question

On July 1, 2019, the City of Belvedere accepted a gift of cash in the amount of $3,500,000 from a number of individuals and foundations and signed an agreement to establish a private-purpose trust. The $3,500,000 and any additional gifts are to be invested and retained as principal. Income from the trust is to be distributed to community nonprofit groups as directed by a Board consisting of city officials and other community leaders.

Answer 1

The question is about a cash gift accepted by the City of Belvedere to establish a private-purpose trust and distribute the income to community nonprofit groups.

Step-by-step explanation:

The subject of this question is Business. The City of Belvedere accepted a gift of cash from several individuals and foundations to establish a private-purpose trust. This trust will invest and retain the principal amount of $3,500,000 and distribute the income to community nonprofit groups based on the board's direction.

Answer 2

Overall, this trust aims to provide long-term financial support to local non-profit organizations through a sustainable investment strategy.

City of Belvedere Private-Purpose Trust Summary:

Date Established: July 1, 2019

Purpose: To invest and retain a donated principal (initially $3,500,000) and distribute income to community nonprofit groups.

Governing Board: Composed of city officials and other community leaders.

Key Points:

Donations are added to the principal and invested.

Only income generated from the investments is distributed.

The Board directs the distribution of income to community nonprofits.

Overall, this trust aims to provide long-term financial support to local non-profit organizations through a sustainable investment strategy.