In 2014, 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. The resulting "Preserve and Protect Fundraising Campaign" was designed with a $1.2 million goal to meet both long term and emergency needs of Spider Lake, allocating 2/3 of donations to the endowment and 1/3 to the emergency reserve fund.
In 2016 The Board of Directors converted the "Preserve and Protect Fundraising Campaign" to the Preserve & Protect Annual Giving Program, with the same objective: to raise endowment (2/3) and emergency reserve (1/3) funds to create a financially sustainable lake association. All members are encouraged to contribute annually to preserve and protect this irreplaceable resource for future generations. We hope for 100% participation by our members.
In 2017 the Board of Directors created "Fish Tier Memberships" (at $100, $250, $500 and $1,000 tiers) to provide donors an opportunity to make annual gifts directed to fund operating expenses. Fish Tier Membership gifts are allocated directly to the SCLA Budget to fund expenses. Fish Tier Membership gifts comprise 49% of the FY 22 SCLA budget. This heavy reliance on "Fish Tier Memberships" depends on all members' continued support each year. Just over 50% of 2022 members renewed or joined at a "Fish Tier" level. Given that the cost of operating SCLA programs is roughly $350 per member, we hope that ALL members will join at a "Fish Tier" AND we hope that many of you will "become a bigger fish" by renewing at a larger fish level. (Bluegill = $100; Bass= $250; Walleye = $500; Record Musky = $1,000).
As of Dec. 31, 2021 SCLA has raised 81% of our original $1.2 million campaign goal:
ENDOWMENT MANAGEMENTThe Endowment is intended to provide long term financial support to SCLA. 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 real 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.
EMERGENCY/Operating RESERVE FUND MANAGEMENTThe Investment Policy Statement for the Emergency/Operating Reserve Fund was developed to provide funds to combat environmental issues (ie: AIS mitigation and prevention) that impact the Spider Chain of Lakes. The fund is invested in 100% fixed income securities.
Donations to the Preserve & Protect Annual Giving Fund will be used solely for the purpose of meeting our mission of Preserving and Protecting our lakes and watershed.
Donations to the Preserve & Protect Annual Giving Fund are split between the Reserve and Endowment funds: 1/3 to Emergency Reserve Fund, 2/3 to Endowment Fund.
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