PURPOSE

The purpose of the Irvington Education Foundation (IEF) Endowment Fund is:

1. To create a long term source of funding to ensure the continuity of providing enrichment programs in Irvington public schools in accordance with the stated mission of the Foundation;


2. To provide the IEF with an additional funding source, so that it can pursue its mission each year despite fluctuations in the economy, marketplace, or annual fund-raising campaigns;


3. To enhance the capacity for funding of multiple year, long-term enrichment programs and larger grants which significantly augment the curriculum; and


4. To establish a vehicle through which parents, alumni, and friends of the Irvington School District may make donations, bequests and endowment gifts to the Foundation as a way of leaving a legacy for the community.

The principal of the Endowment will be invested and the appreciation of and income from that principal will be available to advance the mission of the Foundation in future years.

DEFINITIONS

Principal: Contributions originally made by donors who a) specifically designated their contributions to be included in the IEF Endowment Fund or b) contributed to fundraising campaigns or events in which a specified portion of the funds raised were clearly designated in advance for contribution to the IEF Endowment Fund. (Principal excludes any subsequent appreciation of or income earned from the original contribution.)

ADMINISTRATION

1. The Board of Directors of the IEF (IEF Board) shall have the responsibility and authority to administer the IEF Endowment Fund. Except as provided below, the IEF Board’s voting policies on matters concerning the Endowment Fund shall be determined by the IEF’s By-laws in effect. The IEF Board may establish a Legal Advisory Committee (comprised of IEF Board members and outside counsel) to serve in connection with the Endowment Fund to ensure compliance with all applicable laws.


2. Except as provided below, the Principal of the Endowment may not be invaded.


3. Regular Withdrawals from the Endowment Fund to accomplish its Purpose (defined) will be made annually. The amount of the Regular Withdrawal will be equal to the Endowment Fund’s most recent calendar quarter ending balance multiplied by the Payout Percentage. The Payout Percentage (defined as the percentage of the Endowment Fund’s balance that can be distributed without reducing principal) will be recommended by the IEF Treasurer and approved annually by vote of the IEF Board. (Example: If the IEF Board approved a Payout Percentage of 5% and the most recent quarter’s balance was $100,000, then $5,000 of Regular Withdrawal would be made available for that year.)


4. Special Withdrawals from the Endowment Fund shall be authorized by a Super-Majority Vote (defined as a 2/3 or more majority vote of the IEF Board members eligible to vote) with advice of the Legal Advisory Committee. Special Withdrawals may reduce Principal of the Endowment. (Example: A Super-Majority Vote in a 21-member board would be 14 or more.)


5. The Executive Committee of the IEF Board will take all necessary steps to ensure that there has been a clear assignment of responsibilities for the implementation of these policies to:
   
   a) The Treasurer;
   b) The Legal Advisory Committee; and
   c) The Endowment Fund Committee.
   


6. In the event that an Endowment Fund is no longer deemed necessary or appropriate to fulfill the mission of the IEF, then a Super-Majority Vote of the IEF Board may authorize the termination of the Endowment Fund. The principal of any Endowment Fund then held by the IEF shall be transferred to the IEF’s annual operating funds to be used in a manner consistent with the IEF mission.


7. In the event that the IEF ceases to function as an entity capable of managing an Endowment Fund, the principal, income and appreciation of any Endowment Fund then held by the Foundation shall be transferred to the Irvington Union Free School District (or its successor entity) to be used in a manner consistent with the IEF mission.

Investment Policy:

The investment policy for the IEF Endowment Fund is to invest funds in a prudent manner in accordance with the New York Prudent Investor Act and Uniform Management of Institutional Funds Act. The IEF Board’s objective is to achieve a reasonable rate of Total Return consistent with the philosophy that the investments are of sufficient safety to protect the original value of the endowment gift from unreasonable risk of loss and depletion.

1. Total Return Strategy: The investment policy will follow a “Total Return” strategy, which provides that the Endowment Fund will be invested in both fixed income-instruments and stocks which generate dividends and potential capital gain, in order to optimize the total return of the portfolio investment.


2. Investment Management: The IEF Board is authorized to retain and compensate an independent investment advisor who is knowledgeable about not-for-profit corporations and institutional investing. The IEF Board will exercise due diligence in selecting an independent investment advisor. The Endowment Committee will act as liaison between the independent investment advisor and the IEF Board.


3. Asset Allocation Strategy: In conjunction with the independent investment advisor, the IEF Board will establish a prudent and diversified asset allocation strategy designed to balance the mutual interests of preserving the original principal and securing a reasonable return. The Endowment Committee will monitor the performance of the Endowment Fund’s portfolio against appropriate financial benchmarks and periodically, at least annually, rebalance the portfolio to maintain the established asset allocation strategy.


4. Avoidance of Conflict: IEF Board members shall avoid any conflict of interest or self-dealing in the selection of investment advisor and investment vehicle. In connection with the investments of the Endowment Fund, no member of the IEF Board shall be affiliated with, or receive any compensation or other economic benefit, directly or indirectly, from the independent investment advisor, the institution that the advisor works for, or from the investment vehicle chosen.
   

POLICY REVISION

The IEF Board of Directors may change and/or update this Endowment Fund policy as necessary. Any change to a Super-Majority voting requirement can only be adopted by a Super-Majority vote of the IEF Board.