2014 Heritage Classic Foundation (HCF) Charitable Giving Policies & Procedures Revised: November 19, 2013

The Heritage Classic Foundation is a nonprofit organization dedicated to improving lives throughout the

state of South Carolina. As the general sponsor of the PGA TOUR's RBC Heritage Presented by Boeing

and several other prominent golf events, hundreds of thousands of dollars generated from ticket sales

and sponsorships are distributed to charitable organizations that enhance the quality of life for our

citizens.

Each year, the RBC Heritage champion is presented with a plaid jacket, a trophy and a winning check but

the real winners are the many people who are helped as a result of the success of the Foundation's

tournaments and giving programs - the Heritage Champions Fore Charity, the Birdies for Charity & our

South Carolina License Plate Program. Since 1987 more than $25 million has been distributed to people

in need including hundreds of outstanding students through our Heritage Scholars program. Help us

help others! Please give generously to the Heritage Classic Foundation.

1. Donations to the Heritage Classic Foundation

a. Heritage Classic Foundation, a 501(C)(3) organization

b. Heritage Classic Foundation License Plate Program

2. Making donations to the Heritage Classic Foundation Matching Programs

a. Heritage Champions Fore Charity

b. Birdies for Charity

3. How to donate to the Heritage Classic Foundation

4. Requesting Donations from the Heritage Classic Foundation

a. 2014 HCF Donation Policy

b. Tournament Badge Requests

5. HCF Policies on Requesting Donations from your charity's patrons

6. Becoming an Approved Charity of the Heritage Classic Foundation

7. Approved Charity Limitations

8. Annual Responsibilities of Approved Charity

1. Donations to the Heritage Classic Foundation - Unrest ricted giving

a) Heritage Classic Foundation - The Heritage Classic Foundation is a 501{C)(3) organization and is

a registered charity with the State of South Carolina. Its mission is to provide the highest quality

PGA TOUR golf event that generates significant economic impact and promotion for Hilton Head

Island and the State of ~outh Carolina while generating funds for charitable causes that

enhances the quality of life. Your direct donation to the HCF adds to our capability to increase

our outreach to deserving charities and educational institutions across our state.

b) Heritage Classic Foundation License Plate Program - Driving Up Charity Dollars! The Heritage

Classic Foundation License Plate is a great way to show your support all year. Since the plate

became available in 2004, $145,000 has been generated and utilized to further our charitable

giving programs.

• The plate is available to anyone with a vehicle registered in the State of South Carolina.

The cost is $75 every two years . In the first year, $66 is donated to the HCF. Each time

the plate is up for renewal, $71 is given to the HCF for our Scholar and Charitable giving

programs.

• There are two ways to purchase a Heritage Classic Foundation License Plate Program.

You may complete the Application for Specialty License Plate (MV-95) and submit it

along with the required fees to any satellite DMV office and the plate will be mailed to

you in 3 to 5 days. You may also log onto SCDMVonline.com to purchase the plate online

or go directly to the page at

http:/ /www.scdmvonline.com/DMVNew/PiateGallery.aspx?q=Online

• Anyone with questions can call the SCDMV at {803) 896-5000.

2. Making donations through the Heritage Classic Foundation Matching Programs- The Heritage

Classic Foundation takes pride in its two matching programs which cont inues to encourage donations to

ch ariti es. 2013 was t he first year for the Heritage Champions Fore Charity program and over $640,000

was generated including the 20% match in its inaugural year. The 20123 Birdies for Charity program

nearly doubled its donations from the year prior collecting $660,000.

Our matching programs run within our tournament calendar year from May 1st to April 30th. Funds will

be distributed within our tournament year. The Heritage Classic Foundation reserves the right to reduce

or limit the amount of the donations at any time; provided, however, any money donated through

Heritage Champions Fore Charity or the Birdies for Charity programs will be passed through to the

designated charitie.s-

a) YEAR ROUND - Heritage Champions Fore Charity - Heritage Classic Foundation invites individuals and businesses to join the Heritage Champions Fore Charity (HCFC) - a philanthropic initiative designed to grow our charitable impact throughout the region. The goal of this exclusive program is to increase the charitable dollars generated by the RBC Heritage Presented

_2.¥ Boeing in an effo rt to provide year round support to the nonprofit organizations in our communities. Patrons of the Heritage Champions Fore Charity program also have the option of purchasing Heritage Champions Club Credentials for the RBC Heritage Presented by Boeing.

- • The minimum donation required to participate in this program is $1,000.

• For every $1,000 donation the participant may select up to two qualifying charities to

receive the HCF match.

• The HCF will match 20% to the designated charity

• Checks with the 20% match will be sent to the designated charity no earlier than 10

business days and no later than the end of the tournament year.

• Letters will be sent to both the donor acknowledging the tax donation and to the charity

recipient acknowledging the donor (including their address) and the 20% match by the

HCF.

• For every $1,000 donation, HCFC patrons are eligible to purchase one RBC Heritage ~ Champions Club Credential Package for $1,000. The 2014 RBC Heritage Champions Club

Credential Packages include:

• Two (2) Champions Club credentials for the RBC Heritage April14 - 20, 2014.

The Champions Club is located on the 18th Fairway at the Heritage Lawn.

• Two on-course hospitality venues open Thursday- Sunday:

1. Champions Club Hospitality Tent on the 18th Fairway adjacent to the

Heritage Lawn features dining and a full bar

2. The Champions Club Skybox at its 2014 location on the 15th hole

features snacks and a full bar

• One VIP parking pass

• Saturday night cocktail party on the Heritage Lawn

Champions Club members will be joined by Heritage Champions Fore Charity

Patrons for cocktails and music by the Headliners in the Champions Club on the

Heritage Lawn, Saturday evening, April 19th from end of play until dusk.

• To sign up for the 2014 Champions Club, patrons must fill out a form and return

it with the payment of their choice to the HCF offices by December 20th. For

more information please contact Angie Taylor at 843.671.2448 Ext. 243 or email

angie@ he ritageclassicfo u ndatio n .com.

e Donors are required to fill out an application and return it to the Heritage Classic

Foundation offices.

• The Heritage Classic Foundation reserves the right to refuse a donation.

b) JANUARY THROUGH TOURNAMENT WEEK- Birdies For Charity - The Birdies for Charity is a no­

cost opportunity for approved charities to connect with donors while tapping into the

excitement of South Carolina's only PGA TOUR golf tournament. Charities will receive the entire

amount of the funds raised in the name of the approved charity through Birdies for Charity, plus

an additional20% gift from the Heritage Classic Foundation. There is no cost to approved

organizations to participate in this great community-wide fundraiser.

Birdies for Charity is like a walk-a-thon, but instead of donating per mile, participants either

make a pledge for every birdie made during the tournament or make a flat donation of $25 or

more. If the donors chose to be billed, an invoice will be generated after the tournament for the

amount of their commitment.

• The minimum donation to this program is $25.

• Online donations are preferred .

• A 20% match will be given no later than 60 days after the tournament.

3. How to make a donation to the Heritage Classic Foundation

Fill out t he appropriate paperwork fo r the giving program you wish to part icipate in. (See HCF Charitable

Giving Programs above.)

The HCF will accept a check made payable to the Heritage Classic Foundation, all major credit cards or a

securities transfer. The Heritage Classic Foundation has a brokerage account with the investment firm

listed below and can receive securities or bonds transferred directly into that account.

Securities t ransfers Instructions:

MERRILL LYNCH

DTC#: 5198

CFL ACCT#: 569-02136 For the benefit of the Heritage Classic Foundation

Contacts:

Merrill Lynch

1 Chamber of Commerce Drive

Hilton Head Island, SC 29928

Attn: Janet Williams

843-341-9533

Janet.l.Williams@ML.com

Heritage Classic Foundation

71 Lighthouse Road, Suite 4200

Hilton Head Island, SC 29928

Attn: Tom Wilkinson, Staff Accountant

843-671-2448

Tom@heritageclassicfoundation.com

4. Requesting a donation from the Heritage Classic Foundation- When making a request for a donation

from the Heritage Classic Foundation please note the following:

a) Donations from the Heritage Classic Foundation (HCF) are limited to approved 501(C)(3) non­

profit organizations.

jf • The Heritage Classic Foundation does not limit its charitable contributions solely to

Approved HCF charities. Participation in either or both the Birdies for Charity Program

and Heritage Champions Fore Charity Program is preferred. All other organizations

requesting a donation will be reviewed on an individual basis.

• Donations may be in the form of a certificate for a tournament badge and/or a package

of tournament related articles. All donations are based on availability.

1JE: b) Tournament Badges Requests: All requests must be accompanied by literature regarding the

use of the badges such as a Gala or Golf Tournament.

• Approved charities who have raised $2500 or more through the Heritage Champions

Fore Charity and Birdies for Charity programs during the tournament calendar will

receive a maximum of two certificates for one Clubhouse badge for the following year

to be used at the ir discretion.

• Approved charities who have exceeded the $2500 minimum amount raised may

purchase up to 4 additional grounds or clubhouse badges at a discount.

• Non-qualifying charities may receive one certificate for one grounds badge each and

may purchase up to three additional badges at a discount.

c) There is a limit to one donation per year per charity.

5. HCF Policies on Requesting Donations from your charity's patrons

When approved charities solicit donations from their donors/patrons it is important to note the fo llowing: no goods, services or memberships are to be given in exchange for donations and no participation fees, tu it ions or dues will be paid by donations to the designated recipient ~ Charity(ies).

6. Becoming an Approved Charity of the Heritage Classic Foundation

Charity Se lection Criteria:

• It is preferred that charities are registered as a nonprofit in the State of South Carolina as a

501{C)(3). Southern Georgia non-profits may be considered.

• Religious institutions and charities that collect money and distribute to other charities and

causes are not generally approved. Exceptions may be considered for nonprofit schools and day

care affiliated with religious organizations.

• Each charity must submit the following to be considered:

o Letter to the charities committee requesting approval

o History and mission statement from the charity

o Copy of the Letter of Determination from the South Carolina Secretary of State

o Complete contact information.

o Annual Budget information.

• %of donations for overhead and operating expenses

• %of donations designated for employees salaries

• %of donations from Government entities

• %of donations from organizations patrons versus grants from other foundations

• %of donations for annual programming

• Approved organizations are encouraged to attend the annual HCF Charities Workshop held each

fall. Please contact the HCF for more information on location, date and time.

• A list of our approved charities is listed on our website and can be found at

www.heritageclassicfoundation.com.

7. Approved Charity Li mitations:

• The Heritage Classic Foundation will match 20% up to $150,000 in cumulative donations

collected through either the Heritage Champions Fore Charity or the Birdies for Charity

programs.

• The Heritage Classic Foundation reserves the right to reduce or discontinue the matching

program at any time.

• The Heritage Classic Foundation reserves the right to refuse a donation for any reason.

• The Heritage Classic Foundation reserves the right to refuse any charity's application for

approval.

• The Heritage Classic Foundation reserves the right to limit any of its charity programs and not

accept any further donations that would otherwise qualify for matching funds.

8. Annual Responsibilities of each Approved Charity:

An annual review of each organization will be conducted . The Heritage Classic Foundation reserves the

right to revoke a charity's approval status if it believes the charity is not in compliance with

a. State or Federal regulations which monitor 501(c)(3)'s;

b. or does not align with the policies or mission of the Heritage Classic Foundation.

The following items must be submitted to the HCF annually.

• Required: Updated contact information

• Required: Form 990

• Required every five years: Organization's financial statements (audited financials where

available)

• Required: Annual report outlining nonprofit's activity, number of members, number of people

reached,% of overhead and operating expenses to program expenses, etc.

• Encouraged : Attend annual HCF Charities Workshop

If deemed necessary, a charity may be asked to send confirmation to the HCF from the office of the

Secretary of State of the charity's good standing.