Life Members Fund Reaches $250,000
A major goal was achieved in early January when SAM’s Life Members Fund reached the $250,000 level. A combination of investment gains and new life member dues allowed the fund to reach this level.
SAM now has almost 1,800 life members and attracts new life members nearly every month.
“This is a tremendous achievement,” said President Edye Cronk. “We appreciate the commitment of our life members, and I must credit the wisdom of our Board – led by former Treasurer Richard Paradis – in establishing the investment fund and strategy that has led to this announcement.”
The Fund is invested with UBS Financial Services in Portland and stood at $224,773.66 on December 31, 2003. Also as of that date, SAM had built up $45,581.86 in a special life member’s savings account. With the transfer of $25,226.34 from the savings to the investment account, the $250,000 level was achieved.
Two years ago at an annual meeting, SAM’s members enacted a Board recommendation that capped the Life Members Fund once it reached the $250,000 level and directed new life member dues and income into a new Endowment Fund.
The change was inserted in SAM’s by-laws that now read as follows: “All Life Membership dues shall be set aside in a separate Life Membership Fund, until that Fund reaches the sum of $250,000, at which time the Life Membership Fund shall be capped and shall accept no further deposits of either dues or income. The principle of said account, consisting of the Life Membership Dues paid, shall not be spent. The income from said Life Membership account may be utilized as determined by the Board of Directors.”
The Board has chosen to establish a new Endowment Fund to receive future life membership dues and income. The Board started the fund with $50,000 of surplus funding two years ago, and invested that money in certificates of deposit, now valued at $56,712.34. In January, the Board instructed that the extra life member dues, currently in the savings account, be added to the Endowment Fund. That brings the new Endowment Fund to a level of $77,067.86.
As outlined in the organization’s Strategic Plan, this new Endowment Fund “will be available for special projects and programs, at the vote and direction of SAM’s Board of Directors.”
Last June, the Board decided to make the Maine Conservation School a major cornerstone benefactor of the new Endowment Fund. At their January meeting, Board members decided to allot some time at the next annual planning retreat to create a mission statement and spending parameters for the new fund.
SAM members are invited to submit their ideas for the types of projects and initiatives that would be appropriate for the new Endowment Fund.
Also in January, the Board asked the executive director to confer with SAM’s investment firm on an investment strategy for the new fund, and present options and recommendations at the next Board meeting.