Middle Atlantic Chapter of the American Rhododendron Society
Guidelines for the Investment of Funds for the Chapter
STATEMENT OF PURPOSE: The purpose of the investment policy is to ensure a conservative approach to the investing of chapter funds to maximize revenue and to protect against the loss of funds.
INVESTMENT POLICY: The monies for the chapter are categorized into the following: Operating Funds: These funds are used for the operating expenses of the chapter and consist of funds in the checking account and the money market account. Funds may be transferred to the checking account as needed to cover expenses as set forth in the annual budget. Funds in the checking account in excess of $5000.00 should be moved to the money market account to maximize interest.
Reserve Funds: Reserve funds are to be invested in long range, conservative types of investments. Income from these funds is to be added to the principal in an amount sufficient to keep pace with government inflation indices. The buying power should be kept as constant as possible. Any excess earnings beyond inflation index levels may transferred to the operations monies for whatever use the Board may require. Conservative, long-range investment opportunities may include, but are not limited to, the following:
● Certificates of Deposit
● Government Debt
● Mutual funds
● Mutual funds of treasuries and other forms of debt
● Long-term stock funds
● Real Estate Investment Trusts (REITs)
● Money Market funds
Scheuchenko Trust Funds: The Scheuchenko Trust Fund has been designated as a separate endowment fund and must be maintained as a separate fund for audit purposes. Investment criteria for this fund is the same as the Reserve Fund investment opportunities stated above.
FINANCIAL COMMITTEE REVIEW: It shall be the responsibility of the Finance Committee to review investment opportunities and make suitable recommendations to the Board. Review of the chapter investments should be on a semi-annual basis by the Finance Committee or in a timely manner coinciding with a roll-over of funds from specific investment accounts. A written recommendation of investment strategies will be presented for review and approval by the Board.