Financial Information & Policies
Investment Management and Objectives
The Foundation understands that meeting the charitable needs of our community, while maintaining the growth of our endowment, requires investing our assets in the most prudent manner possible. Our investment objective is to employ a total rate of return strategy which will preserve the real purchasing power of our assets. The Foundation’s Investment Committee plays an active role in setting investment policies and works with our investment professionals to achieve this objective.
The Foundation’s spending policy, or annual grants and expense budget, is four and three-quarters percent (4.75%) of the 20-quarter average net asset market value for the 2016 calendar year. Together with our investment policy, this level of spending is set to ensure that the value of our endowed funds grows over time at a rate which exceeds the rate of inflation.
To satisfy our organizational mission, the Foundation has established both a total return investment strategy and a spending policy. A spending policy is essentially a grants making budget aimed at satisfying two goals – one, to ensure that the value of our endowed funds grows over time at a rate which exceeds the rate of inflation, and two, to maximize the grant dollars provided to meet our community needs. This, of course, applies to the largest of our endowed funds which was created through the sale of Barberton Citizen’s Hospital in 1996, and all endowed funds created by other donors since the Foundation’s inception.
For all endowed funds, the amount available for spending each year is limited to that year’s spending policy as approved by the Board of Directors and calculated at the beginning of each year on the market value of the Fund’s quarterly average total net assets.
Donors who have established endowed funds with the Foundation are permitted and encouraged to authorize grants and scholarships made from their funds, utilizing the amount calculated as available for distribution each year.
The Foundation’s largest commitment, which must be satisfied through the annual spending policy as calculated on the Foundation’s principal fund assets, is the obligation to meet the debt service payments related to the Barberton High School construction grant. This must first be satisfied before other grants are approved.
Websites and Resources
We have found certain websites to be valuable resources and tools, and think you might too. Internal Revenue Service – www.irs.gov – provides many tools, publications and other information to individuals and charitable organizations about tax matters affecting each one. Guidestar – www.guidestar.com – a clearinghouse for IRS Form’s 990 for every nonprofit organization, including the Foundation.