Investment and Finance Policies
1.00 - Investment Policy. The purpose of this investment policy is to establish cash management and investment guidelines for the stewardship of scholarship funds. Specific objectives include the safety of principal, diversification of funds, and reasonable rate of return on investments, commensurate with financial markets.
1.01 - Finance Committee. The Board President will appoint members to the Finance Committee each year. The committee will consist of the treasurer and at least two additional board members. The committee will be responsible for the oversight of the investments and management of funds.
1.02 - Permanent Funds. Permanent funds are invested with an outside investment firm approved by the Board. The outside investment firm will recommend an appropriate ratio of stocks to bonds, with the approval of the SPFFAE Board.
1.03 - Non-Permanent Funds. These funds may be invested with the outside investment firm or in a local bank account. While the final decision rests with the Board, the donor’s wishes and committee recommendations will be considered in determining the best investment.
2.00 - Dollars for Scholars Membership. The Sauk Prairie Foundation for Academic Excellence (Foundation) will maintain a membership with the Dollars for Scholars organization. An annual report of financial activity will be provided to Dollars for Scholars. IRS filing requirements will be met through the inclusion of the Foundation in the Dollars for Scholars Form 990. In addition to the financial data, a summary of student demographics will be submitted annually.
2.01 – Registration with State of Wisconsin. The Sauk Prairie Foundation for Academic Excellence has applied for exemption from filing with the Wisconsin Department of Regulation and Licensing under Wisconsin statute 440.42(5)8.
3.00 - Endowment Fund. The Foundation will maintain an endowment fund to ensure the continuation of scholarships for future Sauk Prairie High School graduates. Each year scholarships totaling five percent (5%) of the endowment fund fair market value as of December 31 will be awarded. While it is the intent of the Foundation that the scholarships be paid out of investment income, the Board may approve the use of principal in a year where the return does not exceed five percent (5%).
4.00 - Permanent/Non-permanent Funds. Scholarships from other permanent and non-permanent funds will be awarded in annual amounts as specified by the donor. If the donor has not specified the award criteria, the same criteria as used for the endowment fund will apply.
5.00 - Distribution of Awards. Scholarship recipients must submit the required documentation to claim their scholarship funds. Unless a donor has stipulated other conditions, each recipient must submit verification of second semester enrollment in an accredited post-secondary institution. Students have a period of two years from the date of graduation to claim their scholarship.
6.00 – Unclaimed Awards. While it is the intent of the Foundation that all scholarships awarded are paid out to students, it is understood that some scholarships will remain unclaimed. Unclaimed scholarships awarded from funds invested by the Foundation will be reinvested in the appropriate fund. Unclaimed scholarships from annual donations will become part of the operating account. Any unappropriated amounts will be re-invested into the Endowment Fund.
7.00 – Fundraising. If the Foundation participates in fundraising activities, 50% of the monies raised will be awarded in the current year. The remaining 50% will be added to the Endowment Fund.
8.00 – Operating Fund. An operating fund will be maintained at a local financial institution to pay for annual operating costs such as administrative fees, postage, printing, etc. Any interest earned on the money market and checking accounts at that institution shall become part of the operating fund. In addition, any unclaimed annual donations will also become a part of the operating fund, per Section 6.00 above. All disbursements from the operating fund will require the signature of the Treasurer and the SPFFAE President or authorized designee.
9.00 – Gift Acceptance. The Foundation will facilitate in any way possible the acceptance of gifts in a way that is advantageous to the donors. However, in some instances, the acceptance of a gift by the Foundation may carry with it potential liabilities. For this reason, the Foundation adopts the following policies regarding the acceptance of gifts.
9.01 – Stocks and Bonds. The Foundation will accept gifts in the form of publicly traded stocks or bonds. In all such cases the Foundation reserves the right to sell or convert such equities.
9.02 – Real Estate. The Foundation will accept gifts of real estate, including property subject to life estates, only after it has had the opportunity to investigate the proposed gift. The investigation shall include all steps reasonably necessary to verify that the property proposed to be gifted is in compliance with applicable local, state, and federal laws. This investigation shall generally include the following:
- A Physical inspection of the property proposed to be gifted.
- Identification of any encumbrances against the property and determination of approximate fair market value.
- The receipt of an affidavit from the owner of the property establishing that the owner is unaware of the presence of toxic substances, contaminants, or underground storage tanks on the property. The affidavit will also establish that the owner is unaware of any violations of local, state, or federal law on the property.
- Contact with local agencies responsible for the enforcement of environmental regulations to certify that the agencies are aware of no such violations.
The Foundation reserves the right to immediately sell real estate when title is deemed to be free and clear.
The Foundation realizes that economic situations may make the acceptance of a gift of real estate a liability to the organization. As such, the Foundation reserves the right to refuse any gift of real estate upon vote by the Board.
9.03 – Business Interests. The Foundation will not accept an ongoing business interest. Donors interested in making such a donation should be encouraged to either sell the ongoing business interest and make a cash contribution or alternatively, to transfer only the business assets to the Foundation.
9.04 – Other Property. Gifts of other types of property will be evaluated by the Foundation on an individual basis.
