Why So Much ?

In 2015, SCLA's Board of Directors worked to create a sustainable revenue stream to support the mission of the association.  We believed, and still believe the best way to do this is to raise and manage an endowment fund that will generate sufficient annual returns to provide consistent revenues to fund our efforts.  We also decided that it is essential to have emergency funds available in the likely event of an environmental emergency such as invasive species that will require immediate and expensive mitigation.

Our initial $1.2 million will be invested as follows:

    • $800,000 will be invested in an Endowment with an annual Spending Policy of 3% (of the rolling 5-year fund balance)
    • $400,000 will be invested as an Operating Reserve Fund, with 100% short term liquidity
The Endowment is intended to provide long term financial support to the association.  The key elements of the investment strategy are capital preservation, return on investment, and a perpetual horizon.  The Endowment Investment Policy Statement was developed to provide an expected annual return over the long term (i.e.: >20 years) that exceeds the annual Spending Policy of 3%.  In order to smooth the impact of market volatility, the 3% Spending is calculated over a rolling 5 year average of the market value of the fund.  The Endowment is invested in a diversified portfolio of no-load, low cost, high quality mutual funds in a 65% equities/35% fixed income strategy.

The Investment Policy Statement for the Operating Reserve Fund was developed to provide funds to combat environmental issues (ie: AIS mitigation and prevention) that impact the Spider Chain of Lakes.  It is invested entirely in fixed income instruments and has daily liquidity.

Your gifts will be used solely for the purpose of meeting our mission of Preserving and Protecting our lakes and watershed.  

Your gifts are split between the Reserve and Endowment funds: 1/3 to Reserve Fund, 2/3 to Endowment Fund unless you direct otherwise.

Please contact us:  spiderchainoflakes@gmail.com if you would like more detailed information.

Spider Chain of Lakes Association
PO Box 1082 • Hayward, WI 54843

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