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Mount Grace Summary Description of Funds

Funds are invested as short- or long-term assets, according to the Mount Grace Investment Policy Statement (IPS). A fund may include unrestricted, donor-restricted, and board-designated amounts. Donor-Restricted amounts are donated with restrictions that cannot be altered. Board-Designated amounts originated from unrestricted sources that the Board of Directors voted to designate to a specific fund, conforming to the fund’s guidelines. Contributions to any fund are appreciated.

The Operating Fund represents income to be used for operating expenses. An operating budget is developed annually, and approved by the Board of Directors. A balance adequate to cover two month’s operating expenses is maintained. Excess funds may be expended for any customary purpose by vote of the Board. Unrestricted income to the organization in amounts less than $10,000 accrues to this fund; greater amounts are designated by Board vote. Income earned on this fund accrues to this fund.

Capital Improvement Funds (CIF) are funds to have on hand for planned or unplanned facility improvement needs at headquarters. Income earned on this fund supports the Operating Fund.

The Stewardship Capital Fund (SCF) are funds to have on hand for planned or unplanned stewardship needs, including land management, service learning activities, and landowner assistance. The fund will be replenished up to $15,000 annually by income-generating stewardship activities, with additional stewardship income going to operating. Income earned on this fund supports the Operating Fund.

Operating Reserve Funds (ORF) are funds: a) to have on hand for operating cash-flow needs, and b) to adhere to Executive Limitation for Admin & Finance Policy #5.3: to hold a two-month operating budget safety reserve. Income earned on this fund supports the Operating Fund.

The Land Protection Fund (LPF) is risk capital for land project acquisition and transaction costs. The goal is to recycle these funds in order to preserve the fund, but the fund may be expended even when there is little chance for repayment. This fund may be used to support project-related staff expense. Income earned on this fund supports the Operating Fund.

The Revolving Loan Fund (RLF) serves as a revolving loan fund for land conservation projects. Half of the income earned on this fund supports the Operating Fund, and half accrues to this fund.

The Revolving Appraisal Fund (RAF) is used as a catalyst to pay for appraisal costs for feasible potential projects to be facilitated by Mount Grace that have high conservation value but do not have any other identifiable source for appraisal funds. Eligible projects shall have been reviewed favorably by the Conservation Committee and the Management Team. Income from this fund accrues to this fund.

Donor Restricted Funds (DRF) include non-fund-specific, donor-restricted gifts for specific projects or uses. Income earned on this fund supports the Operating Fund, unless otherwise specified by the donor.

The Conservation Restriction Enforcement Fund (CR Fund) pools cash, including gifts from donors of conservation restrictions, for the purpose of enforcing conservation restrictions. Income earned on this fund accrues to this fund.

The Endowment Fund (EF) is a restricted pool of assets managed to endow the programs of Mount Grace. The principal is not available for funding annual or ordinary organizational needs. A portion of the income and realized gains is to be transferred into the Operating Fund at least annually to support organizational activities. The remaining income and realized gains accrue to this fund.

The Stewardship Endowment Fund (SEF) is a restricted pool of assets managed to endow the stewardship programs of Mount Grace. The principal is not available for funding annual or ordinary organizational needs. A portion of the income and realized gains is to be transferred into the Operating Fund at least annually to support stewardship expenses. The remaining income and realized gains accrue to this fund.

The Local Landscape Collateral Fund (LLCF) consists of CDs purchased at Greenfield Savings Bank for Mount Grace to use as collateral for loans from the bank to purchase land for conservation.

 

For information about directing a donation to a specific fund, please contact David Kotker, Mount Grace Development Manager, at 978-248-2055 x19 or kotker(at)mountgrace.org.