Revenue and Finance Policy
General Policy
It is the policy of the Washington State 4-H Foundation to vigorously
pursue the Foundation's mission. This includes developing resources
for Foundation disbursement as well as assisting state and county
staff, districts, and counties in their efforts toward developing
revenue for 4-H related purposes. Priority will be given to statewide
efforts, then district or multi-county efforts.The Washington State 4-H Foundation will prudently
manage, invest and steward the assets entrusted to it by its donors.All revenue and receipts of the Foundation whether
generated by the Foundation or by others, must relate to furthering
the mission of the Washington State 4-H Foundation.Types of Accounts
Two basic types of accounts are provided:
1. Endowment
2. Expendable or Current Use
Endowment Accounts
Each endowment consists of a principal account and a corresponding
but separate expendable account. An endowment may be established
with a minimum $10,000 principle balance. The principle account
is not available for disbursement. Earnings on the principle account
will be handled as follows:
• Endowed accounts receive a 4% annual payout credited to
the corresponding expendable account, calculated at 1% quarterly
on the 36 month rolling average market value of the total endowment
portfolio.
• The 4-H Foundation receives a 1% annual management fee,
calculated at .25% quarterly on the 36 month rolling average market
value of the total endowment portfolio.
• Any additional interest earnings will be returned to the
principle account to grow the endowment.
• Some or all of the unspent balance of the expendable account
at fiscal year, may be credited back to the principal account or
be retained in the expendable account.This policy reduces the effects of short-term market
fluctuations and provides a more predictable revenue flow into the
expendable accounts. It also offers a potential hedge against inflation
by encouraging continual growth of principal. At the same time,
it provides a predictable annual level of revenue for the stated
purpose of each endowment account as well as for the Foundation’s
operating expenses. New endowed accounts can be held for up to five
(5) years with an initial amount of less than $10,000. This will
enable the fund to reach the required minimum through additional
contributions and accumulated income.All income earned on pending endowed accounts will
be reinvested in the account. No expenditures may be made from pending
accounts, unless authorized for fund raising efforts to increase
the account balance.If pending endowed accounts do not reach the minimum
$10,000 balance within the five (5) year period, all interest earned
will be credited to the general fund, with the original gift and
additional contributions placed into the corresponding expendable
account.
Expendable Accounts
All funds in expendable accounts are available for distribution.
Expendable accounts can be established with a minimum balance of
$500. With proper authorization, the full balance of the account
can be disbursed at any time. These accounts may be either restricted
(i.e., used only for specific purposes) or unrestricted (i.e., to
be used as determined by individual(s) authorized to direct fund
disbursement).The terms of these expendable accounts should be
filed with the foundation prior to account establishment, and should
include:
• type of account (restricted or unrestricted)
• allowable uses
• position(s) or individual(s) authorized to direct fund disbursement
• methods of authorized disbursement
• procedure to modify agreement terms
• alternative uses of the account should the original purpose
cease to existBecause of their highly “liquid” nature,
interest income is not paid on expendable accounts. Any income generated
will be credited to the 4-H Foundation’s general fund to cover
administrative expenses.
Service Fees
• Grants:
A 5% administrative fee shall be assessed for grant revenue where
the Foundation acts as a conduit, accepting funds as a 501 (c )
( 3) on behalf of a county or club. Prior approval for utilizing
the Foundation as a conduit must be received from the Executive
Director.
• Grants: A 10% administrative fee shall be assessed for grant
revenue where the Foundation acts as fiscal agent and will administer
the funds. Prior approval for utilizing the Foundation as fiscal
agent must be received from the Executive Director. The Executive
Director is authorized to waive this fee in cases where a private
foundation or corporation does not allow administrative or indirect
costs to be paid with grant funds.
• Service Accounts: A 5% service fee shall be assessed for
revenue and receipts transferred through the Foundation to another
fiscal agent. In such cases, the Foundation will act only in a transfer
capacity. Prior approval for utilizing the Foundation in this capacity
must be received from the Executive Director.
Loans
Loans are not allowed. 4-H related groups, programs or accounts needing reimbursable funding may apply for such under the Foundation's grant program. Proposals requesting reimbursable funding will be reviewed by the Foundation's Grant Review Committee (such grants are dependent upon unrestricted funds being available).
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