Download Foundation Disbursement Recommendations July 2013 M. Van Pelt

Foundation Disbursement Recommendations
July 2013
M. Van Pelt & K. Goeden
OPTION 1:
1)
Calculate net profit for the fiscal year based on the following factors:
a.
Sum of all SCLS Foundation income accounts:
i. Donation Income
ii. Interest and Dividend Income
iii. Foundation Fees
iv. Realized Gains/(losses)
v. Change in Accrued Income
vi. Change in Market Appreciation/(Depreciation)
vii. Any Other Income
b.
Less the sum of all SCLS Foundation expense accounts:
i. Bank Service Fees
ii. Accounting Expenses
iii. Audit Expenses
iv. Bank Fee Trust Expenses
v. Promotion Expenses
vi. Any Other Expenses
Calculating the net profit in this manner takes into account any fluctuation in the market value and overall value of
the SCLS Foundation portfolio. With the goal of maintaining at least $100,000 principal balance in the portfolio,
the overall value of the portfolio must be a factor. In years where there is a net loss, due to market depreciation or
realized losses, there will be no distribution.
2) The net profit will be disbursed in the following manner:
a.
b.
c.
50% shall remain in the SCLS Foundation portfolio
25% shall be disbursed to SCLS members participating in the SCLS Foundation portfolio.
i. Either by application process or request for funding for a particular project.
ii. Or in a manner that benefits all participating members.
25% shall be disbursed to all SCLS members for a purpose that benefits all members, to be
determined by the SCLS Foundation Board.
In this example, for 2012, the resulting net profit would be as follows:
Jan - Dec
Income
4100 · Donation Income
10,913.00
4400 · Interest and Dividend Income
3,281.01
4500 · Foundation Fee
3,585.74
4600 · Realized Gaines/(Losses)
1,100.09
4700 · Change in Accrued Income
4800 · Change/Market Appre./(Depre)
Total Income
-798.98
8,029.14
26,110.00
Expense
6000 · Bank Service Fee-Checking
82.00
6400 · Raleted Foundation Expense
6410 · Accounting Expense
6420 · Audit Expense
700.00
6430 · Bank Fee Trust
1,177.01
6440 · Promotion Expense
Total 6400 · Raleted Foundation Expense
Total Expense
Net Income
10.00
851.15
2,738.16
2,820.16
23,289.84
Half of this amount would be retained in the SCLS Foundation Portfolio ($11,644.92), 25% would be distributed to
SCLS Foundation members ($5,822.46) and the remaining 25% would be distributed to all SCLS member libraries
($5,822.46).
OPTION 2:
The same as OPTION 1, but not including donation income in the net profit calculations. In this example, for 2012,
the resulting net profit would be:
Jan - Dec
12
Income
4400 · Interest and Dividend Income
3,281.01
4500 · Foundation Fee
3,585.74
4600 · Realized Gaines/(Losses)
1,100.09
4700 · Change in Accrued Income
4800 · Change/Market Appre./(Depre)
Total Income
-798.98
8,029.14
15,197.00
Expense
6000 · Bank Service Fee-Checking
82.00
6400 · Raleted Foundation Expense
6410 · Accounting Expense
10.00
6420 · Audit Expense
700.00
6430 · Bank Fee Trust
1,177.01
6440 · Promotion Expense
Total 6400 · Raleted Foundation Expense
Total Expense
Net Income
851.15
2,738.16
2,820.16
12,376.84
So in this Option, $12,376.84 would be divided up in the following manner:
 $6,188.42 would remain in the SCLS Foundation
 $3,094.21 would be distributed to SCLS Foundation members
 $3,094.21 would be distributed to all SCLS members
**This option suggests that the SCLS Foundation retains all of the donation income for the year, plus half of the net
profit.
OPTION 3:
The SCLS Foundation would retain all of the donation income for the year, but distribute all of the remaining net
profit for the year. This calculation is the same as in OPTION 2, however, the entire $12,376.84 would be
distributed in the following manner:
50% to participating SCLS Foundation members ($6,188.42)
50% to all SCLS member libraries ($6,188.42)