Endowment Fund Policy

Adopted unanimously at two consecutive LWVWI Education Fund Board of Directors meetings: July 9, 2004, and September 18, 2004. Amended unanimously by the LWVWI Education Fund Board of Directors: January 29, 2005; July 15, 2006; October 12, 2012.

1. Yearly distribution:
An annual distribution may be taken from the endowment fund and be used for operations. This distribution may be no more than four percent (4%) of a rolling average fund value calculated as follows: List the market values of the fund as of December 31 of the past five years; Remove the high and low figures; Then take the average of the remaining three figures.

2. Right to request withdrawal of funds:
In the event of extreme financial hardship, and upon the unanimous consent of the Board of Directors, LWVWI has the right to withdraw up to 20% of the principal balance of the fund valued as of January 1 of the year in which such request is made. The withdrawal of funds for extreme financial hardship may occur only once during any year and shall be non-cumulative. “Extreme financial hardship” is defined as the situation when operating funds are not sufficient to enable the organization to meet its reasonable goals and objectives for any given calendar year.

3. Investment committee:
The Board shall appoint a committee of at least 3 members for staggered 2-year terms. At least one committee member shall not be a current board member. No member of the committee may serve more than 6 consecutive years. At the expiration of each member’s term, a replacement will be appointed. The Treasurer will be an ex officio member. The committee will serve without compensation and without bond. Each committee member shall maintain membership in LWVWI during service on the committee.

The committee’s function shall be to advise and facilitate the investment of funds to gain the greatest advantage for LWVWI while protecting the League’s assets to the extent possible. The committee shall be guided by League bylaws, policies and principles.

4. Records and actions:
Accounting records and transactions recommended by the Investment Committee shall be handled by the LWVWI office under the direction of the Treasurer.

5. Amendment:
This policy may be amended by a majority vote of the board at a meeting or by a two-thirds majority vote of the board by written consent, as provided by the bylaws.

Copyright League of Women Voters of Wisconsin