This policy was adopted by the Board of Directors on January 17, 2006
Abstract
This statement of policy and guidelines is intended to document all relevant policies pertinent to the Concert Singers of Cary endowment fund program as well as to clarify how gifts are accepted towards the fund. In adopting this policy, all previous policies and guidelines are superseded.
Purpose of the endowment fund
The endowment fund exists to provide Concert Singers of Cary with future financial stability. Principal balances in the fund will provide some investment income, reducing our exposure to fundraising uncertainties. In addition, monies can accumulate which can provide seed cash for expensive, but worthwhile special projects. Disbursements made from the endowment will be determined by the Board of Directors and can include, but are not restricted to operating support and scholarship awards.
Endowment fund management
The endowment fund is managed by a standing Finance Committee that reports to the Board of Directors. The Executive Director, Treasurer, Development Committee Chair, and any sitting gala fundraising committee chair shall serve as ex officio members of the committee. The President with the advice and consent of the Board of Directors shall appoint other members annually.
Fund lifetime
The endowment fund shall exist concomitantly with the Concert Singers of Cary. Should the Concert Singers of Cary be dissolved, balances in the endowment fund shall be disbursed as determined by a 75% majority of the Board of Directors. No other disbursements of the principal balance may be made without both the recommendation of a special project task force and a 75% majority of the Board of Directors provided that such a disbursement is made in accordance with state and federal regulations and guidelines. Income will not be drawn from the endowment fund at a minimum until the fund balance reaches $100,000. Income withdrawals shall not exceed 5% of the value of the total principal investment in the funds. Such income may be drawn only upon a 75% majority vote of the Board of Directors.
Investments
Endowment monies may be invested in a wide range of securities. Considered off-bounds will be high-yield or speculative bonds and funds, and/or any securities generally deemed of high risk and poor credit. Monies shall not be permitted in venture capitalization, real estate, mining or extraction interests, and personal or business loans. Optimally, a diversity of funds will be sought for investment.
Investment Philosophy
The management of the endowment fund shall make due consideration of two following criteria when selecting investment securities: 1) protection of principal, 2) optimal fund growth. The Finance Committee shall assess investments at least quarterly.
Statement of Satisfaction of Fiduciary Responsibility
The Finance Committee shall be understood to have exercised appropriate fiduciary responsibility with respect to the endowment fund when the following conditions are met. 1) Investments are made within the bounds stated in “Investments” and “Investment Philosophy” above, 2) Deliberations of the Finance Committee are reported in writing to the Board of Directors, 3) The investment plan is approved by the Treasurer separately from the Finance Committee, and 4) Appropriate prospectuses are made available, upon request, to the public.
Reporting
The current endowment fund balance shall be made available to public inspection upon demand. Reports to the Board of Directors shall be made at each regular meeting. Principal and fund balances shall be reported separately for Gala-raised funds, the endowment fund, and other funds or memorials established at the direction of the Finance Committee or Board of Directors.
Form of Contributions
Contributions to the endowment fund may be made in the form of cash or securities. Any securities in the form of those prohibited above shall be liquidated and converted to other forms at the earliest practicable time. Gifts may be accepted in memorial form. The Treasurer shall track such gifts separately. All contributions made to the endowment fund are fully tax deductible.
