Download Investment Policy - OutServe-SLDN

OS/SLDN
INVESTMENT FOR OPERATING RESERVES POLICY
Preamble:
The Board of Directors, as a fiduciary, is responsible for all funds of the organization. All
funds of the organization are held by the corporation as a steward for the sake of carrying
out its mission and purposes. The following investment objectives and directions are to
be judged and understood in light of that overall stewardship.
Purpose:
To establish guidelines to achieve an operating reserve sufficient for OS/SLDN to:

Adequately support its annual budget;

Ensure continued growth of current and future programs;

Fulfill its mission even during times of harsh economic conditions;

Provide financial stability and the means for the development of its principal activity.
Objective:

To maintain funds adequate to meet the operating needs of OS/SLDN with an initial goal
of three months reserves and an intermediate goal of six months reserves;

To assure preservation of principal;

To ensure adequate liquidity;

To achieve market rate returns;

To manage risk.
Investment Strategies:
100% of the operating reserve funds shall be held in any of the following: FDIC-insured
checking and savings accounts (or similarly insured accounts); money market accounts which the
sponsors assert maintain a constant $1.00 per share value; US Treasury obligations not to exceed
three months; and federally insured certificates of deposit not to exceed $100,000 per institution
(CD maturities may exceed three months if no penalty is incurred for withdrawal of funds prior
to CD’s maturity).
Investment Decision-Making Authority:
OS/SLDN’s Board of Directors is responsible for making daily short-term investment decisions.
The Board of Directors and our donors expect the assets to be invested with care, skill, prudence,
and diligence under the circumstances prevailing from time to time that a prudent expert acting
in a like capacity and familiar with such matters would use in the investment of funds of like
characters with similar aims.
Reporting:
OS/SLDN will prepare at least quarterly, or when requested by the Board of Directors, a
statement of financial position and a statement of cash flows that shows the past, present and,
when operationally possible, projected operating status.
Reserve Policy Review:
This policy will be reviewed by the Finance Committee and full Board of Directors at least once
annually, where upon the reserve policy is re-approved or amended as deemed necessary.
Adopted: 03 Jun 2001
REVISED: 01 Jun 2003
REAFFIRMED: 19 Dec 2006
REAFFIRMED: 09 Mar 2008
Revised: XX Dec 2013