Section 40-2-004 - Matching funds, what constitutes004.01 New money for endowments established by the NAC or the NHC to be used as match shall include the following:004.01A Conventional funds are funds, or anything convertible into funds, given to the NAC or NHC for the purpose of stabilizing the arts or humanities or arts or humanities education, and specifically for the purpose of matching the money from the Cash Fund. The source of conventional funds may be either private or public, excluding Nebraska state funds. Conventional funds shall include, but not be limited to, the following: 004.01A(1) Multi-year pledges shall be counted as match on a year-to-year basis as the money being counted is collected.004.01A(2) Deferred gifts, such as testamentary gifts, shall be counted as a match only when actually collected or at the time they become irrevocable.004.01A(3) Life insurance policies are acceptable property for matching gifts if ownership is transferred to the NAC, NHC, or their endowments. The matching gift value shall be the existing cash value and dividend values if applicable as calculated at date of transfer. Annual increases of cash and dividend values of paid-up policies may be credited as they accrue. Also, values accruing to other policies may be credited except as they are used to offset annual premiums. When the policy becomes due as a claim, the total face amount less prior used values will be a match in the year received.004.01A(4) Funds given through an irrevocable trust may be counted in the same year the trust becomes irrevocable.004.01A(5) Earnings from the NAC/NHC Endowments shall be considered conventional funds, but earnings on funds in the Cash Fund shall not be considered conventional funds. 004.01B Designated Funds consist of competitive grant money which comes from an outside source, private or governmental agency, and is already designated for some purpose. This kind of funding constitutes part of the match only if it is one of the following types: 004.01B(1) Funds given to the NAC or the NHC or their endowments for the purpose of being used as match.004.01B(2) Funds given to the NAC or the NHC to be distributed to constituent organizations for the constituents' stabilization endowments.004.01B(3) Funds given to the NAC or the NHC to be distributed to constituent organizations for arts or humanities education.004.02 New money generated for qualified endowments of constituent organizations can be included as part of the match. In order to count as match, donations to qualified endowments must meet the following requirements:004.02A The endowment must meet the standards set by the Nebraska Arts Council or the Nebraska Humanities Council.004.02B The endowment must be intended for long-term stabilization of the organization.004.02C The funds of the endowment must be endowed and only the earnings thereon expended.004.02D The constituent organization must adhere to the rules and standards of the NAC or NHC for the reception of those funds.004.03 New money generated to match seed grants awarded by the NAC or the NHC may be counted as match for the Cash Fund. The seed grant must be used for a non-capital project or program, and the grant must be necessary to the production of the project.40 Neb. Admin. Code, ch. 2, § 004