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MEMO 5/26/2010

TO: Advisory Committee Members
FROM: Ritchie Houge, Vice President for Philanthropic Services
RE: Updates on Fund Activity

Greetings!

This spring has been very busy with grant recommendations, scholarship awards, and support services for our valued family of funds. Here are some key component fund highlights.

FY 11 Endowment Fund Distributions

Your assistance and cooperation in getting through the economic turmoil of the past 18 months has contributed to the improvement in the market value of our funds. As a result, NMF approved endowment distributions from more funds for FY 11 (July 1, 2010) using a three tiered distribution formula.

1. 5% distribution (most endowment funds) will see a full distribution of 5% of historic market value because they will remain “above water” (market value greater than principal value) after the 5% distribution is applied.
2. 3.5% distribution this group will see a 3.5% distribution of historic market value based on their fund being within 2% of principal value after the 3.5% distribution and a projected return for the current quarter is added to their market valuation.
3. The remaining endowment funds will see no distribution for FY 11 (other than for this year’s administrative fees). Their market value will remain below principal value because of timing; funds established just prior to the economic downturn have not yet recovered their value. To protect these funds, the NMF Board specifically reserved the option of reviewing the “underwater” funds following the Sept 2010, Dec 2010, and Mar 2011 quarters for endowment distributions based on investment performance or scholarship commitments.

 
Administrative Fees NMF will apply regular administrative fees to all funds for FY 11. Project funds will be assessed fees quarterly or when all funds are distributed. Endowment funds will be assessed at the end of the fiscal year.

Fundraising Activities Please remember to contact NMF when planning fundraising activities. Liability insurance is required for all special events and you are responsible for providing proof of liability insurance before the event. NMF will not authorize an event without it.

NMF has developed an Excel-based budget tool to help component funds plan activities and evaluate fundraising activities. If you are conducting a fundraising activity with NMF as the charitable organization and running expense billing through NMF, you MUST prepare a budget prior to the activity and present it for approval. Expenses will be paid upon receipt of the fundraising budget. This tool works very well with NMF’s expense form and allows for improved management of gifted dollars and paying bills in a timely manner. To get a copy of the budget form please contact Barb Lien at barbl@nwmf.org.

Confidentiality Policy. NMF requires all funds to update their fund advisory committee member information and to have all committee members read and acknowledge their understanding of the donor confidentiality policy by signing a compliance statement. NMF will not recognize anyone purporting to represent a fund that has not signed and returned this form.

FundWeb. A benefit to fund advisory committees that have returned the confidentiality policy compliance statement, FundWeb provides detailed financial information, including new donations, with updates weekly. .


Thank you,
ritchh@nwmf.org
Ritch Houge
 

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