Endowment Fund Policy

Dedication
All funds donated to the Endowment Policy are dedicated to the grantors or to those in whose name funds are given. However, it was the loss of our friend and Assistant Director, Sandy Deschaine, that precipitated this fund being established. She loved all those she worked with and her family asked that memorial gifts be given to the library. She, her smile and helpful nature are missed and remembered fondly.

Mission Statement
Spaulding Memorial Library’s mission is to inspire lifelong learning, advance knowledge, and strengthen our community.

I. Purpose of the Endowment Policy
The purpose of the Endowment Fund is to support the mission of the library for years to come, as designated by the Board of Trustees. Until such time that the library has a large enough fund to enable investments, the Trustees will hold any bequests or donations in savings and separate from general operating funds. The intent of the fund is to ensure long term stability of the library, as good stewardship, and to provide a safety net in the instance of unforeseen and unanticipated events.

II. Conflict of Interest
As opposite parties in any proposed gift giving transaction, Spaulding Memorial Library as the grantee and the prospective donor/grantor have inherently conflicting interest. Spaulding Memorial Library cannot provide the donor/grantor with any legal or financial guidance concerning the proposed gift transaction. All prospective donors are urged to seek counsel and guidance from a licensed professional.

Those involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the Library investment program, or that could impair their ability to make impartial decisions.

III. Investment Objective
Once sufficient funds totaling $2,000.00 have accumulated, it will be the policy of the Library to invest funds in a manner that will maximize the security of the principal, while satisfying cash flow demands, using approved methods that will provide the highest possible return. All investments will conform to applicable laws and regulations governing a 501(3)(C) nonprofit corporation.

Donors are asked to conform to the Gift Acceptance Policy for guidelines on restrictions, Gift Acceptance Committee, use of legal counsel, appraisals and fees, and valuations.

IV. Delegation of Authority
Until the funds have reached $2,000.00 indicating investment, the Board of Trustees is responsible for monitoring the Endowment Fund. The Board will, at that time, designate an Investment Committee to make recommendations on an investment strategy and financial institution and/or financial consultant for transacting investment business. At that time the selected investment partner will be made aware of the mission of the Library.

V. Liability
When investments are made in accordance with the agreed upon policy in effect at the time, no member of the Board of Trustees with investment authority shall be held liable for a loss resulting from default or insolvency of a depository of Library funds.

VI. Reporting
The Treasurer shall provide the Board of Trustees with quarterly reports which clearly provide the following information regarding the Endowment Fund or investment portfolio: types of investments, principal balances and account balances

Additionally, an Annual Performance review of the fund and/or investments shall be conducted. Once investments have been made this should be an annual audit/review with the Financial Consultant to determine continued investment suitability and fund performance. The Financial Consultant shall apprise the Board of Trustees of any recommendations.

VII. Investment Policy Adoption
The Library’s investment policy shall be adopted by resolution of the Library’s Board of Trustees. The Investment Committee shall review the policy no less than annually and the Board of Trustees of Sebago Memorial Library must approve any modification to it.

VIII. Changes to Endowment Policy Policies
These policies and guidelines have been reviewed and accepted by the Board of Trustees of Spaulding Memorial Library, who must approve any changes to, or deviations from these policies. Once an Investment Committee is needed and established both groups must approve any changes.

VIII. Privacy
Spaulding Memorial Library will respect donor’s wishes relating to the desire to remain anonymous. If so desired, the library will restrict information about the donor to only those staff members, or members of the Board of Trustees, with a need to know, and in accordance with the Internal Revenue Code. The Library shall also publicize any such gifts as desired by the donor.

IX Responsibility for IRS Filings Upon Sale of Gift Items
The Treasurer of Spaulding Memorial Library will meet the library’s obligation under the Internal Revenue Code.

Approved on the 9th day of February, 2016.