Documents Governing Monetary Gifts to the Village of Arden, Delaware, including the Endowment Fund
Investment Guidelines of the Pendulum Fund
Click here to see the 2008 Investment Guidelines of the Pendulum Fund of the Village of Arden Endowment — This policy was first proposed in March, 2008 and put together by the same Ad Hoc Committee that created the gift policy below.
Policy of the Village of Arden Regarding Monetary Gifts to the Village
The text below was gathered by Danny N. Schweers, Chair of the Town Assembly, in June, 2013 from town meeting minutes in 2008 and 2009, when the village received a large bequest from Johanna Schroeder in her will.
Adopted by the Town Assembly, June 23, 2008
The purpose of this policy is to define the procedures, responsibilities and controls to be applied to the acceptance, management and use of funds given or bequeathed to the village with or without terms attached that restrict or direct their use.
2.1 If no restrictions are placed on the use of the funds, the Chairman of the Town Assembly is authorized to receive the funds on behalf of the Village.
2.2 If the restrictions or directions for use of the funds are in line with the stated objectives of the Village and will not contravene the existing ordinances or policies of the Village, the Chair of the Town Assembly is authorized to receive the funds on behalf of the Village. The Chair, together with the Treasurer or Secretary of the Village, is also authorized to make financial arrangements and sign documents related to accepting the funds.
2.3 If the restrictions or directions for use of the funds are not clearly in line with the stated objectives of the Village or might contravene the existing ordinances or policies of the Village, the Chair of the Advisory Committee will bring a motion to the next Assembly meeting proposing a plan whereby the Village could resolve the differences and receive the funds or, in case no such plan is feasible, the Advisory Chair will bring a motion to decline the offered funds.
3.1 Immediate Use Gifts – The funds of an Immediate Use Gift will be spent in their entirety as indicated in the Restriction Document.
3.2 Endowment Gifts – The Funds of an Endowment Gift will be invested in a way to provide a long-term annual return. Endowment Gifts must either be large enough to support investment costs and projects consistent with the Restriction Document or be joined with other existing Endowment Gifts that have a similar purpose. Endowment Gifts may have no restricted purpose other than for projects in benefit of the Village of Arden.
3.3 Proposals – A Proposal is a request by a Committee of the Village of Arden for money from an Endowment Fund.
4.0 Management of Funds
4.1 Immediate Use Gifts – The Committee responsible for carrying out the project specified in the restriction document will carry out the wishes of the donor and draw upon the funds using normal procedures. The Committee will send appropriate documentation of completion of the project to the Project Administrator. Any funds that remain after completion of the specified project then will be transferred to the Unrestricted Endowment Fund.
4.2 Fiscal Management of Restricted Endowment Funds – If the funds are to be used to provide a long-term benefit to the Village with a continuing purpose, specified in the granting document, they will be managed by the Village Treasurer, in consultation with the Project Administrator, who will ensure that funds are available to carry out the intended purpose during the time specified (one year to perpetual). It is anticipated that the Treasurer may wish to involve an investment professional to aid in this function.
4.3 Unrestricted Endowment Fund – Grants to the Village without restriction will be considered as an endowment to the Village and will be managed appropriately by the Treasurer. Projects for use of these funds will be managed in the same way as restricted long-term funds.
4.4 Investment Guidance – In managing the investment, the Treasurer will use the investment guidance adopted separately by the Village.
4.5 Election of Project Administrator – The Project Administrator, elected bi-annually by the Town Assembly, will provide the format and receive proposals from Town Committees for projects consistent with the fund restrictions. The Administrator will chair an ex officio committee made up of the officers of the Village of Arden. This committee will evaluate the proposals and allocate funds for the year. The Project Administrator will provide a format for these proposals.
4.6 Determining the Availability of Long Term Funds – Each year in March the Treasurer and the Project Administrator will determine the amount of money that can be spent from the Fund while maintaining the desired lifetime of the fund.
4.7 Prospective Donors Coordinate with Village Officials – Donors are encouraged to coordinate their wishes with both the Project Administrator and the Town Committee that would have primary responsibility for carrying out the terms of the Restriction Document before making final plans for a gift in order to avoids problems.
5.0 Use of Funds
5.1 Written Restrictions and Intention – Each donor should provide a written description of restrictions and intentions. The Project Administrator may add clarification to this description if needed to help Town Committees to submit appropriate projects. The restriction document can simply indicate that the fund should be added to the Unrestricted Endowment Fund.
5.2 Management of Projects – The Town Committee requesting the funds will be responsible for management of the project after funding is approved.
5.3 Project Completion – The responsible Town Committee will file a brief report to the Project Administrator, who will maintain records of projects completed and report completion to the donor where appropriate. The Committee will also report on such projects in their quarterly report to the Town Meeting.
6.0 Recognizing Receipt of Funds
6.1 Reporting Receipt of Funds – The Treasurer will report the receipt of new funds to the Town Meeting for entry in the official records of the Village.
6.2 Thank You Notes – An officer of the Town Meeting will write an official thank you from the Village suitable for use in the donor’s tax records.
7.0 Responsible Person Not Available
7.1 Chair of the Town Meeting – In case the Town Meeting Chair is not available within a reasonable time frame to carry out the duties described in this Policy, the Treasurer may substitute for the Town Meeting Chair. When possible, the Treasurer should consult with the Chair before taking action.
7.2 Treasurer – In a similar situation the Project Administrator may substitute for the Treasurer with the same restrictions as in 7.1.
7.3 Project Administrator – In a similar situation the Advisory Chair may substitute for the Project Administrator with the same restrictions as in 7.1.
NOTE: The above policy was created by an ad hoc committee: Alton Dahl (chair), Derrick Kennedy (secretary), Ron Meick, Sue Rothrock, and Steven Threefoot. At the town meeting where this policy was adopted (June 23, 2008), Steven asked the Town Assembly to thank the committee members for their work, and in particular to thank Alton for his efforts. Alton said that there were many good discussions, and there were no arguments among the group. Alton reminded the Town Assembly that this is only a policy, not an ordinance, and so could be changed by a vote at any town meeting.
Election of Project Administrator
from the minutes of the Town Meeting of September 22, 2008, Item 2.0:
Cecilia Vore said that the Registration Committee was asked to come up with a procedure for electing the Project Administrator. Only one nominee will be needed, just as for other Town Officers. The name of the elected position will be “Monetary Gifts Administrator”. The person will be elected for a two year term, and that election will be held in March of odd-numbered years. After the first Election, the Advisory Committee will be charged with getting the nominee, but for this first Election, the Ad Hoc Committee will be asked to suggest a nominee. There can also be nominations from the floor. Since there was no urgency in electing the Monetary Gifts Administrator, the Committee recommended that this election be put off until March 2009.
Schroeder Funds Given To Village
from the minutes of the Town Meeting of January 26, 2009, Item 4.0: Treasurer’s Report.
The Estate of Johanne Schroeder gave the Town of Arden a check for $95,000, and the funds have been invested in a six-month CD at TD Bank. The remainder of her estate is expected to be distributed to the Villge by the end of March . Final details are being worked out with her Executor. Once her estate is fully distributed, Steven Threefoot and I will meet with Ron Meick to work out the implementation of the investment strategy he developed for the Village.
from the minutes of the Town Meeting of March 23, 2009, Item 5.0: Treasurer’s Report.
The Estate of Johanne Schroeder gave the Town of Arden a total of $370,000 to date, and the funds have been invested in six-month CDs at TD Bank and a savings account at Wilmington Trust. The remainder of her estate is expected to be distributed to the Village by the end of April. Final details are being worked out with her Executor. Once her estate is fully distributed, Steven Threefoot and I will meet with Ron Meick to work out the implementation of the investment strategy he developed for the Village.