The Board of the Portland FolkMusic Society (PFS) recently established an Endowment Fund Policy. The intent is to create a fund that will be invested for the long term, so that the investment earnings would be used on an unrestricted basis to support activities furthering our mission which is “to preserve, present and promote folk music and arts within the greater Portland area”. The specific use of funds in any given year is to be determined by the then current Board and is unrestricted, so long as it is consistent with our mission. Except for emergency situations, determined by the Board, Endowment Fund distributions are not to be used for operating expenses.
The Endowment Fund is in full compliance with the Uniform Prudent Management of Institutional Funds Act (UPMIFA, ORS 128.305 to 128.336). By definition, an endowment is a fund that is “not wholly expendable by the institution on a current basis”. This means that the fund continues in perpetuity, and it is the earnings from the fund’s investment that are available to further our mission.
The initial endowment fund is held in a restricted, interest-bearing PFS bank account (“Endowment Savings” at OnPoint Credit Union) until it reaches sufficient size (about $25,000), at which time it will be transferred to a long-term investment vehicle. The long-term investment vehicle will be a professionally managed endowment fund, familiar with the requirements of the UPMIFA.
Deposits to the endowment fund may come from gifts, bequests, or other contributions which are specifically designated by the donor for the endowment fund, and from undesignated donations as decided by the board. The Board may also vote to transfer excess operating funds into the Endowment Fund.
Each fiscal year the board shall decide whether to use all or part of the available distribution from the endowment fund to further our mission in a specific way, or shall decide to let the funds accumulate for another year. This decision will be communicated to our membership. If a distribution is taken in a given year, the proposed use of the distribution, the amount, and the responsible party for administering the funds will also be communicated to the membership in both the Local Lore newsletter and our website.
UPMIFA recognizes and protects the rights and expectations of contributors to an endowment. People who donate to the Endowment Fund have an enforceable right to insist that PFS manages the fund as they were told it would be managed.
Each year, that year’s donors who do not choose to be anonymous will be publicly acknowledged on our website and/or Local Lore or by other suitable means.
The PFS Endowment Policy is a portion of the policies on donations and fundraising that can be found with our “PFS Policies on Donations and Fundraising” on the PFS website.
With this New Year, we are looking for some founding donors to the PFS Endowment Fund. To become a founding donor, send a check of $500 or more to PFS, P.O. Box 1448, Portland, OR 97207-1448 along with a note indicating that the donation is for the Endowment Fund.
Thank you in advance for helping to make the PFS Endowment Fund a reality for the future of PFS.