Bakersfield North Rotary Foundation Policies and Procedures

Transcription

1 Bakersfield North Rotary Foundation Policies and Procedures The mission of Bakersfield North Rotary Foundation is to support charities in the Greater Bakersfield area, particularly those serving children and youth, and to support the club-sponsored Interact and Rotaract Clubs. Our Foundation is one of the ways Bakersfield North Rotarians support the ideals of Rotary, including the Rotary motto Service Above Self. P O Box 1027 Bakersfield, California Rev. 7/2014

2 Application of these Policies and Procedures The Board of the Bakersfield North Rotary Foundation has adopted these policies and procedures to supplement the bylaws of the Bakersfield North Rotary Foundation. If these policies conflict with the bylaws, the bylaws control. Meetings of the Board of Directors Regular and Special The Bakersfield North Rotary Foundation Board meets monthly to review the Foundation s financial statements and to review pending requests for funding. Quarterly, the review includes review of investment performance with the investment manager. Unless otherwise noticed, all regular board meetings are on the 3rd Wednesday of the month at 5:00 p.m. and are held at a place announced by the President of the Foundation. The President may call special meetings to discuss specific items or issues as allowed by the bylaws. Special meetings will not be called to review a request for funding. All funding requests must be submitted timely so they can be reviewed at a regular meeting. Members of the Foundation board have fiduciary obligations to the donors which includes the BNR Club, BNR Club members, and the general public who attend our events intended to fund the Foundation and to the people of California, to assure the funds are managed and expended in a manner consistent with the charitable purpose of the Bakersfield North Rotary Foundation. Fiduciary duty means the legal liability to assure the funds are earned, invested, managed, and expended consistent with federal and state law. Board members are expected to attend all board meetings so they can fully participate and exercise their fiduciary duties. 1

3 Funding Policies The mission of the Foundation, which is printed on the cover page, governs funding decisions. As Rotarians, we follow the Four Way Test and we require it of things we fund: Of the things we think, say or do 1. Is it the TRUTH? 2. Is it FAIR to all concerned? 3. Will it build GOODWILL and BETTER FRIENDSHIPS? 4. Will it be BENEFICIAL to all concerned? There are two aspects to a funding decision who and what (or why). Funding Policies Who we fund We fund the following organizations, following generally this order of priority: 1. North High and Frontier High Interact Clubs and the CSUB Rotaract Club. 2. Educational institutions with a physical presence in the North Bakersfield area. 3. Charities with a physical presence in the North Bakersfield area who serve children and youth. 4. Charities and educational institutions without a presence in the North Bakersfield area, but who serve children and youth throughout the Greater Bakersfield area. Examples include the Bakersfield Symphony Orchestra and CALM, both of which are not in the North Bakersfield area, but which provide services to the youth of Greater Bakersfield. 5. Charities in the Greater Bakersfield area that serve the poor. 6. Educational institutions in Kern County. 2

4 7. Rotary International, and other Rotary Clubs and Districts, involved in local, regional, or international charitable activities through local, district, or RI grants. We do not fund: 1. Religious institutions or organizations to foster religious training; to support worship or other religious activities; to support operations of religious institutions; or to support the construction, rental, renovation, or purchase of land or buildings for religious organizations. We fund religious organizations to support charitable functions such as food banks. 2. Individuals, except than through our Interact scholarship program. 3. Charities with an international focus and without a Bakersfield presence, except through Rotary International or Rotary District grant procedures where the Bakersfield North Rotary Club has agreed to participate and the grant requires matching funds from the clubs involved. 4. Organizations that practice any form of discrimination. 5. Organizations whose primary focus or project is political or lobbying. 6. Candidates for any political office. 7. Grantmaking organizations, other than Rotary International (The Rotary Foundation). Funding Policies What or why we fund We fund many kinds of projects. This list is not exclusive: 1. Interact student scholarships. 2. General operating funds for sponsored Interact and Rotaract Clubs. 3. General operating funds for charities. 4. Activities designed to raise operating funds for charities. Examples include golf tournaments or banquets. 5. Purchase of supplies and operating assets for charities and schools. 3

5 6. Purchase of food or other supplies to feed or clothe the poor. 7. Purchase of supplies to support holiday festivities for the poor or for disadvantaged youth. 8. Bricks and mortar capital campaigns designed raise funds to build, rent, renovate, or buy land or buildings in which a charity operates. Funding Policies Use of tickets for sponsored events When the club receives tickets for a sponsored event (golf, banquet, trap shoot), the President of the Club and the President of the Foundation are responsible to assure that all seats are filled. The Foundation will not sponsor events for which it cannot receive support (attendance) from Club members. The Presidents should select the members to go to an event based on their interests in the charity and in the activity. The Presidents may also consider the ability of the member to purchase a ticket. 4

6 Funding history examples of acceptable uses Rotary International Frontier High School Interact Club North Beardsley School North High School Interact Club RYLA Habitat for Humanity BNR Club s Thanksgiving Baskets North High Choir Youth Connection Holiday Cottage Make-A-Wish (Frontier Interact) Bakersfield PAL CALM Bakersfield Symphony Orchestra Taft College Foundation Boys and Girls Clubs Global Family Standard School District Taft College Foundation Standard School District Frontier High Interact CSUB Rotaract North High Interact BNR Club s Thanksgiving Baskets Active 20/30 Club Holiday Cottage Bakersfield PAL Youth Connection Bakersfield Symphony Orchestra CALM North Beardsley School Standard Middle School Boys and Girls Club Taft College Foundation The Hope Center Covenant House RYLA North High Link Crew North High Interact Frontier Interact Taft College Foundation Boys and Girls Club CALM Hope Center Kern County Youth for Christ Covenant House BNR Club s Thanksgiving Baskets Standard School District The Rotary Foundation Henrietta Weil Mem. Child Guid. Holiday Cottage Frontier High School Vex Robotics Bakersfield Symphony Orchestra Kern River Corridor Foundation Bakersfield PAL North Beardsley School Youth Connection Boys and Girls Club Kern Adaptive Technology Center 5

7 Bakersfield East Rotary Foundation RYLA Dist Boys and Girls Club North High Interact Club Frontier High Interact Club NHS Athletic Booster Club BHS Athletic Booster Club Holiday Cottage Global Family Youth for Christ Bakersfield Symphony North Beardsley PTC KCSOS Ed. Svc. Fnd Covenant Services Panorama Vista Preserve Citzens Preserving History Boys & Girls Club Bak. Mus. Of Art Funding Procedures Funding Procedures Applications for funding Students desiring a BNR Foundation scholarship must obtain an application from their Interact advisors. Charities or educational institutions may use the BNR Foundation form (page 8) or send a letter in which they provide the same information requested on the form. Using the form will not increase chances of funding; sending a letter rather than the form will not decrease chances of funding. We just need the information! Funding Procedures Application submission deadlines Applications for funding must be received by the President of the Foundation before 5:00 p.m. on the Wednesday immediately preceding the Board Meeting at which you want your request to be considered. We will notify applicants approximately one week after the board meeting at which their application was considered. Funds for approved applications will accompany notice of approval. For example, if you need funds in May, you must send the application such that the President receives it by 5:00 on the second Wednesday in April, for 6

8 consideration at the April board meeting. Checks for approved applications will be available approximately one week after the April board meeting, on the fourth Wednesday in April. Charities or educational institutions may mail the application OR otherwise deliver it ( , fax, personal delivery) to the Foundation President OR give the application to a BNR member. BNR members who receive funding requests must immediately deliver them ( , fax, personal delivery) to the BNR Foundation President (the immediate Past President of the Club). Any delay may mean the organization will not be funded. 7

9 Request for donation or other funding Mail this form to: Bakersfield North Rotary Foundation P O Box 1027, Bakersfield, California Name, address, phone number of charity or educational institution: Name of contact person: Does the organization practice any form of discrimination? Y or N Federal Tax I.D. Number: Is the organization recognized by the Internal Revenue Service as a qualified tax-exempt organization under section 501 (c)(3) of the Internal Revenue Code? Yes or No If No, who is your fiscal agent? Amount requested: $ Date needed by: Date of event (if applicable) On a separate page, please describe the purpose of the donation. Be detailed and include a budget. FOR EVENT SPONSORSHIPS: 1. Attach a separate page explaining the number of tickets we will receive and the nature and extent of any publicity we will receive for the donation requested. If there are sponsorship levels, please explain. 2. Attach a copy of an invitation, flyer, advertisement, or other published item with date, time, and place indicated. 8

10 Investment Policy Scope of this investment policy This Statement of Investment Policy reflects the investment policy, objectives, and constraints of Bakersfield North Rotary Foundation portfolio assets and will be used as a guideline by the Foundation Board of Directors and all investment management advisors retained by the Foundation. Policy Objectives The Foundation s investment objectives preserve and protect the Foundation s assets, maximize total return with reasonable/acceptable levels of risk, maintain appropriate asset allocations to meet the cash flow and liquidity needs of the Foundation, and exercise controls and continuously evaluate all related activity. Bakersfield North Rotary Foundation s investments shall be made in consistent with the Prudent Investment Act, which states: The trustee is under a duty to the beneficiaries to invest and manage the funds of the trust as a prudent investor would, in light of the purposes, terms, distribution requirements, and other circumstances of the trust. This standard requires the exercise of reasonable care, skill and caution, and is to be applied to investments not in isolation but in the context of the trust portfolio and as a part of an overall investment strategy, which should incorporate risk and return objectives reasonably suitable to the trust. In making and implementing investment decisions, the trustee has a duty to diversity the investments of the trust unless, under the circumstances, it is not prudent to do so. 9

11 Responsibilities The Board of Directors shall delegate investment management functions to one or more Investment Managers. On a quarterly basis the Foundation Board will review investment results based on written reports submitted by the investment manager(s) to evaluate their performance relative to investment policies and guidelines to insure adequate diversity to minimize the risk of losses and maximize safety, liquidity and return. General Investment Principles 1. Investments shall be made solely in the interest of the Foundation. 2. The assets shall be invested with the care, skill, prudence, and diligence under the circumstances then prevailing of a prudent man acting in like capacity and familiar with such matters would use in the investment of his own fund of like character and with like aims. 3. Investment of the assets shall be so diversified as to minimize the risk of losses, unless under the circumstances it is clearly prudent not to do so. 4. The Foundation may employ one or more investment managers of varying styles and philosophies to attain the Foundation s objectives. 5. Cash funds should be invested in short term money market instruments providing the maximum safety, liquidity, and return. Investment Management Policy 1. Preservation of Capital: Consistent with their respective investment styles and philosophies, investment managers should reasonably try to preserve capital, understanding losses may occur in individual securities. 2. Risk Aversion: Understanding that risk is present in all types of securities and investment styles, the Foundation recognizes that some risk is necessary to produce long-term investment results that are sufficient to 10

12 meet the Foundation s objectives. However, the investment managers must make reasonable efforts to control risk, and will be evaluated regularly to ensure that the risk assumed is commensurate with the investment style and objectives to meet the goals of the Foundation. 3. Adherence to Investment Discipline: Investment managers are expected to adhere to the investment management styles for which they were hired. Managers will be evaluated regularly for adherence to investment discipline. Investment Guidelines The Board in consultation with the investment manager reviews the Foundation s investment guidelines yearly. The current guidelines favor income over growth, and the majority of the funds are invested in relatively low-risk, yet high-dividend equities and bonds, with a limit of equities to 20 percent of the total portfolio. The current guidelines also favor short-term bonds over long-term bonds because of the historically low interest rates. Spending guidelines The Foundation budgets up to 70% of the income generated in the preceding fiscal year as its spending limit. Income is based on gross donations, realized and unrealized or losses, but excludes gifts expressly given to increase the corpus. The Board understands this calculation can lead to increased spending during times of asset growth and decreased spending during times of decreased asset value, notwithstanding the actual cash donations. Investment policy review To assure continued relevance of the guidelines, objectives, financial status and capital markets expectations as established in this statement of investment policy, the Foundation will review investment policy, investment guidelines, and spending guidelines annually. 11