Precedented Times

Precedented Times

First of all, we miss you! We miss nouns! We long to see people, go places, and do things. But, until these unprecedented times return to precedented times, this eNewsletter will have to suffice. We’re writing today to remind you how important the Community Foundation’s Board of Directors and Team believe it is to communicate with you as to how the recent economic trends have impacted our organization. For instance, instead of diamonds, many are choosing to invest in commemorative jewelry such as these stunning earrings to always remember the year 2020—like we’d ever be able to forget 2020!

ALL KIDDING ASIDE, the Community Foundation prudently follows nationally accredited policies that govern our investment practices in good times and in bad. Our funds are managed by Capital Cities LLC, a team that is knowledgeable regarding the long-term investment philosophy shared by community foundations across the country. We are also fortunate to have a dedicated group of local volunteers serving on our Finance Committee. This Committee meets quarterly to review investment performance, and, when necessary, adjusts our asset allocation to align with the policies that are in place. These individuals serve with a strong sense of fiduciary responsibility and love for Grant County.

Along with these fiscal leaders, we remain confident that the best philosophy is to stay the course. Our hope is that with market corrections, such as those we are seeing today, these incidences will be few and far between.

Of course, preserving the purchasing power of all the funds we hold is one of our foremost responsibilities. For those funds invested with long-term growth in mind, our spending policy determines distribution based upon the previous twelve quarters and calculates a 4%, 4.25%, or 4.5% payout annually, depending on the average fund balance. This policy is in place in good times and bad, providing a “cushion” against the extreme highs and lows we are currently experiencing. At times like this, we’ve been asked why we don’t distribute total earnings annually—that’s a valid question! Over the past 18 years we have seen the positive results that occur when a spending policy is in place; and we’ve witnessed other organizations who didn’t have such a policy in place—it was devastating. That’s how we know if we distributed total earnings each year, there would be nothing to grant in years like 2008 and 2020, when earnings are uncertain.

All-in-all, we’d like to thank you for continuing to GIVE WHERE YOU LIVE. Our community is a good investment! And, as always, please feel free to call or email us with any questions at 765-662-0065. And, if you just can’t live without a commemorative token of 2020, we’d also be happy to connect you with a local jeweler!

No Comments

Post A Comment