[bruce]

Not yet Kate. We carry a little over $200,000 in our Capital Depreciation fund. This is a liquid fund that depletes as needed, and replenishes as we hit our budgetary marks ($240,000 of depreciation is a budgeted expense on our P&L). Additionally, our annual campaign brings in between $400,000 and a million dollars, which is all raised as unrestricted. About $400,000 is used for annual scholarships; $200,000 for program support; $100,000 – $150,000 for new capital projects; and the rest for reserves.

The above is our best case scenario.

[bruce]

We have a not-for-profit budget of $6.5 mil. We run an overnight camp and a day camp, as well as some mission run retreats.
Our board investment subcommittee of our Finance and Operations committee created an IPS (Investment Policy Statement) that then allowed us to hire money mangers for our endowment fund. The IPS provides for asset allocations of Equity = 30%; Fixed Income = 65% (investment grade is at 60% and below-investment grade is at 5%); 5% cash. We have a permitted variance of +/- 5%. The value if our endowment is $2.4 mil. We also leverage this towards a priority line of credit which allows a draw on 60% of the value of the fund if needed. The interest on this LOC is much less than traditional LOC’s and there is not mandated time horizon as long as the ratio is in tact. The interest/draw yields between 3-4% and is used for stipulated purposes as defined by the donors.

In addition, we have an annual capital/operational campaign to raise money for camp scholarships, programs, and capital projects. we budget for depreciation and, as long as we hit our budgetary mark, we have that depreciation to put away in a depreciation fund. We use this fund for its purposes. We also borrow from this fund before going to traditional LOC’s or PCL for cash flow needs. We replenish when able.

After the webinar, I made it a priority to budget for an unrestricted cash reserve fund. over and above our depreciation fund.