PRESS-KIT

Любовь к родине начинается с семьи.

Фрэнсис Бэкон

Наша родная Русь более всего занимает нас своим великим будущим, для которого хотим мы трудиться неутомимо, бескорыстно и горячо.

Николай Добролюбов

PARTNERS

OF THE FUND:

“The love for the country begins from a family”.

Francis Bacon

“We are concerned about the great future of

our native Rus' more than anything else and

we want to work for it tirelessly, selflessly and

passionately”.

Nikolay Dobrolubov

About the Fund

The Istoki Endowment Fund was registered in March 2013 in order to

create a unified transparent system for attracting donations and their proper

utilization as well as to improve financial reporting to donors.

The Fund was established by Vladimir Yakunin, Chairman of the Board of

Trustees of the Foundation of St. Andrew the First-Called and the Center of

National Glory.

Mission of the Fund

Strengthening the spiritual fundamentals of the Russian society and moral

education based on Orthodox principles and honorable examples of the

Russian history and culture.

Income from investments will be directed to the development of the

existing programs of the Foundation of St. Andrew the First-Called and the

Center of National Glory which help to attract the general public’s attention to

the issues of spiritual and moral renaissance of the Russian society and

respect for the history and culture of Russia.

Special purpose funding covers the following aspects:

Providing support to education and training in historical and cultural studies

Encouraging patriotic spirit and civic responsibilities among young people

Providing financial support to educational institutions or projects, founding

schools or training center

Granting scholarships and grants

Financing research and socially important projects

INVESTMENT

The Fund allows the

investment of

received donations

pursuant to Federal

Law No. 275-FZ of

2007 “On the Procedure

for the Establishment

and Use of

Endowments of Non-

commercial

Organizations”.

THE LEADERSHIP

IN THE SECTOR

The fund is one of the largest endowments

in Russia with the volume of attracted

donations of about 800

million rubles.

Financial Structure of the Fund’s Operations in Russia

HISTORIC EXAMPLES

The first endowment in

the history was formed

by philosopher Plato for

his academy (it was a

small estate). Academy

had more than 900 year

long history.

Another analogue of

contemporary endow-

ment funds appeared in

the UK in 1502 when

Lady Margaret Beaufort,

King Henry VIII's grand-

mother, made donations

for establishment of the

theology departments at

Oxford and Cambridge

Universities.

In the U.S. the most fa-

mous endowment funds

are Harvard, Yale,

Princeton and Stanford

universities' funds. Their

volume amounts to bil-

lions of dollars (in parti-

cular the Harvard Uni-

versity endowment at

year-end 2012 totaled

32.7 billion dollars).

Nobel Foundation is the most famous inter-

national endowment

fund established in XIX

century. According to

Alfred Nobel's will, the

funds from the sale of

his property were to be

invested in safe securi-

ties the interest from the

income of which are now

issued as an award to

scientists — for out-

standing achievements

in science — and public

figures — for their contri-

bution to the achieve-

ment and maintenance

of peace.

What do Endowments Mean?

Endowment of non-commercial organization means the

part of the property of a non-commercial organization formed

by donations and transferred for trust management to a

management company for generation of income used for

financing the statutory activities of the non-commercial

organization.

In Russia the minimum term of endowment formation is 10

years. In the world practice the vast majority of endowments

are established forever. The income from management can

only be used for the purposes defined during the endowment

formation.

Advantages of an Endowment Fund Structure

Stable long-term financing of the programme

Donation to an endowment fund provides stable long-term

financing of charity programmes and long-term partnership

not depending on the financial conditions of the donors in

future.

Intended use of capital

Return earned on invested donations is transferred to the

Fund’s programmes strictly in accordance with the donor

agreement and a decision of the Fund’s Management Board.

Financial transparence

The Fund is controlled by the Management Board and the

independent Board of Trustees. Large donors may be given

chairs in the Board of Trustees. The fund will regularly

prepare and publish on its web site financial report covering

its activity and the use of capital.

Different forms of donations

Donations to the endowment fund can be made in the form of

cash contributions, securities or real estate.

Tax deduction

Personal income tax deduction equal to the amount of

donation made into the endowment fund is provided according

to the Russian income tax legislation (limited to 25 % of a

year’s taxable income).

Individual approach

The Fund’s management takes into account preferences of

each donor with respect to the donation form and structure.

Scope of Endowments Education

Science

Health protection

Culture

Physical fitness and sports

(except for professional sports)

Art

Social care (support)

Spiritual and moral education

Environment protection

Free legal aid to citizens and their legal education

Archiving

Endowments in Russia

According to Donors Forum a non-commercial

partnership of grant-awarding organizations in Russia

at the moment 157 endowment funds have been

registered which accumulate over 15,7 billion

rubles.

87 of 157 registered funds have already formed the

endowment and the others are in the process of

attracting donations.

The largest endowment funds were established for

support of universities. For a university the

endowment can be both a "safety cushion", which

guarantees additional income, and a source of

funding for innovative and long-term programs.

Plato’s Academy—the first endowment in the history

Nobel Fund—one of the most famous international endowments

MGIMO Development Fund - one of the largest and most famous endowments in Russia

Harvard University—one of the largest endowments in the world

* according to Donors Forum a non-commercial partnership of grant-awarding organizations in Russia , February 2016

Education

Public health and social support

CultureSportPRT

DISTRIBUTION OF ENDOWMENTS BY SUPPORT SPHERES*

Endowments: Main Issues How is an endowment formed?

An endowment can be formed only through donated funds and

since 2012 the endowment which has already been formed can be

replenished with securities and real estate.

When is an endowment considered to be formed?

An endowment is considered to be formed, if its size is equal to or

exceeds 3 million rubles, the endowment council is established and

the endowment is transferred for management to the management

company.

What is legal model of endowment formation?

Two models of endowment formation are covered by law: as part of

operating non-commercial organizations (NCOs, namely such as

INO (independent non-profit organization), funds, public

organizations, public foundations and religious organizations) and

as an independent new entity.

What laws are endowments regulated by?

Activities for endowment formation and management are regulated

in Russia by Federal law No. 275-FZ "On the Procedure for the

Establishment and Use of Endowments of Non-commercial

Organizations" of 2006, as well as by Federal laws No. 276-FZ

of December 30, 2006 "On Amendments to the Certain Legislative

Acts of the Russian Federation in Connection with the Adoption of

the Federal Law "On the Formation and Use of Endowments of Non

-commercial Organizations"" and No. 328-FZ of November 21,

2011 "On Amendments to Certain Legislative Acts of the Russian

Federation Regarding the Formation and Use of Endowment of Non

-commercial Organizations".

Instruments of Endowment Investment

Government securities of

the Russian Federation,

government securities of the

subjects of the Russian

Federation, bonds of other

Russian issuers;

Shares of Russian issuers

established in the form of

joint stock companies;

Government securities of

foreign countries which meet

the requirements

determined by debt

obligations of foreign

countries to which proceeds

of National Welfare Fund

can be placed;

Bonds and shares of other

foreign issuers;

Mortgage-backed securities

issued in accordance with

the legislation of the

Russian Federation on

mortgage securities;

Investment shares of closed

end mutual funds, if the

rules of trust management of

these mutual funds cover

payment of income from the

trust management at least

once a year;

Investment shares of

interval mutual funds;

Investment shares of open-

end mutual funds;

Immovable property;

Deposits in rubles and

foreign currency in credit

institutions.

Endowment is a constantly growing capital

The Board of Trustees

Vladimir I. YAKUNIN President of OJSC “Russian Railways” and Chairman of the Board of Trustees of the St. Andrew the First-Called Foundation and the Centre of National Glory

Georgy S. POLTAVCHENKO Governor of St. Petersburg

Dmitry A. PUMPANSKY The Management Board chairman of Pipe Metallurgy Company and “Sinara” Group

Andrey R. BOKAREV Co-owner and Chairman of the Board of CJSC

“Transmashholding” and OJSC “MC “Kuzbassrazrezugol”

Vladimir Ye. FORTOV President of the Russian Academy of Sciences

Lyudmila A. VERBITSKAYA President of St. Petersburg’s State University, member of the Russian Academy of Education

Sergey V. MIKHAILOV CEO of ITAR-TASS,

member of the Russian Journalists Association

Experts & Speakers of the Fund

Chairman of the Board of Trustees of the ISTOKI Endowment Fund, the St. Andrew the First-Called Foundation and the Center of National Glory

Strategic development of endowment funds system;

International projects;

Political assessment of international and domestic events;

Revival of Russian historical spiritual and cultural values.

Vladimir I. YAKUNIN

“We are convinced that

spiritual revival of Russia

will be the driving force,

which would entail the

revival of Russian society

and the state, and will

make every day of our

lives turned to the future"

Vladimir Yakunin

“Having three or more

children must not be

cumbersome, but

prestigious. Only an

increase of the total

fertility rate coefficient

from the current 1,573 to

2.15 help to overcome the

current demographic

trends. We have no other

choice we have. We

advocate not only for the

preservation of the

number of Russian

citizens, but primarily for

the preservation of the

traditional foundations of

our society".

Natalia Yakunina

"Endowment is an

effective charity

instrument like social

entrepreneurship. Helping

once benefactor runs

mechanism that will work

for the benefit of society

for many years, including

during the life of his

grandchildren and great-

grandchildren".

Ekaterina Gerus

Natalia V. YAKUNINA

Sergey E. SCHEBLYGIN

Ekaterina A. GERUS

Chairwoman of the Board of Trustees of the Sanc-tity of Motherhood" program, member of the Board of the ISTOKI Endowment Fund

Activities within the framework of the "Sanctity of Motherhood" Program: Initiation of bills aimed at formation of a family policy at the federal and re-gional levels

Formation of social responsibility of the media in matters of education, marriage and family

Revival of traditional family values, establishment of maternity protection centers.

Director of the ISTOKI Endowment Fund

Strategic development of the ISTOKI Endowment Fund

Interaction with the state authorities of the Russian Federation.

Executive Director of the ISTOKI Endowment Fund

Current activities of the ISTOKI Endowment Fund;

Practice of endowments functioning;

Advantages and prospects of endowment funds in Russia and abroad;

Examination for donations registration;

Effective fundraising.

Contacts of press-service

Olga BIRYUKOVA

Head of Press Department

+7 495 955-92-52, add. 2005

mob. +7 925 780 8298

e-mail: obiryukova@istoki-foundation.org

Dmitry SHUMANSKIY Deputy Head of Press Department

+7 495 955-92-52, доб. 2008

mob. +7 926 271 8946

e-mail: dshumanskiy@istoki-foundation.org

In 2015-2016 the Fund will focus on the replenishment of the endowment for the

development of existing programs. Work will be continued on attracting donations

and the return on their investment will be allocated to the St. Andrew the First-

Called Foundation and the Center of National Glory programs. The priority

programs, that will receive support from the ISTOKI Fund, are: "Pray for Peace of

Jerusalem", as the part of which the Holy Fire is annually brought to the Russian

Orthodox Church, the "Sanctity of Motherhood" program, "Service to the

Motherland: Events and Names", and other key programs of The St. Andrew the

First-Called Foundation and the Center of National Glory.

STRATEGIC OBJECTIVES OF THE ISTOKI FUND FOR 2015-2016

The specialized endowment fund “Fund for Support of Historical and Cultural Studies “ISTOKI”

42/5, Pokrovka str., 105062, Moscow

Tel.: +7 (495) 9559252 press@istoki-foundation.org

www.istoki-foundation.org

The Fund «ISTOKI in social media:

https://www.facebook.com/EndowmentIstokiFund http://vk.com/endowmentistokifund https://twitter.com/Fund_Istoki

Moscow-2016