Policies

One of the most important jobs of the Foundation Board of Directors is to protect the mission and reputation of the Foundation.  To do that, the Board has established policies pertaining to the acceptance of gifts, our investment choices, and distribution of funds.

Gift Acceptance Policy

The gift acceptance policy outlines the types of gifts we can accept and what the Foundation can and can’t do when soliciting or accepting those gifts.

The types of gifts we expect to receive most often are cash, securities, or insurance policies.  We will also consider accepting real estate, personal property, life income gifts, or ownership in privately held companies.  Obviously, each of these has its own concerns that must be considered before the gift is accepted, be it the expense of owning the gift, the potential for liability, or the difficulty in turning the assets into cash.

The Board must also review the appropriateness of the gift by ensuring the gift does not compromise the core values of the Foundation or damage its reputation.  The Board will also make certain the intent of the donor is compatible with the Foundation’s future use of the gift.

Read the complete Gift Acceptance Policy by clicking here.

Investment Policy

Our investment policy is designed to guide the Board in its future investment decisions, striking a balance between income, growth, and long-term safety of principal.

The Endowment Fund has a long term investment outlook and, therefore, will generally have a greater percentage of equity securities than fixed income securities in its portfolio.  For the Special Purpose Fund or Donor Designated Fund, the investment timeline is generally much shorter, which means the safety of principal is a much higher priority than investment growth.  As a result, fixed income investments will make up a nearly all of the purchases for these funds.

Read the complete Investment Policy by clicking here.

 

Distribution Policy

This policy determines when the Foundation can begin paying out funds and how much it can donate each year.  There will be no distributions from the Endowment Fund during the “startup phase” of the Foundation.  The startup phase will end when the Endowment Fund has at least $35,000 and total foundation assets exceed $60,000.  Once the startup phase has completed, the Foundation will start distributing 1% of the Endowment Fund assets annually and, over the years, will increase that to a maximum of 4-5% as investment growth allows.

We do not expect to include any principal in distributions from the Endowment Fund.  Distributions from the Special Purpose Fund may include principal and interest.  And distributions from the Donor Designated Fund will be principal only with the interest being rolled into the Endowment Fund.

Read the complete Distribution Policy by clicking here.

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