Comments on Options

Here are clarifications on the questions posted:
1. On option 1 – is it correct that we can decide how the money is used and if we so decided we could withdraw all of it at anytime?
Yes, the organization would establish some basic guidelines as part of the process in setting up a quasi-endowment. Expenses during the year would need to fall within those basic guidelines. It appears that generally, members are interested in supporting staff development which could include the workshop the president and president elect have attended (president is paid for through National), Public Issues Leadership Development Conference (Director’s office give $500 per section in the last few years), scholarship to attend NEAFCS to present scholarly work, dollars for a yearly professional development day for members. Those are the main examples that have been suggested. The board would determine what will be covered as they look at the budget and then those expenses would be covered.
Yes, funds can be withdrawn at anytime.
2. Why/how does option 2 differ from l in the respect that “Money may be depleted in a few years.” Is it because of the interest rate?
As members vote on these options, it is for a general direction: quasi-endowment or short-term investment plan. For the short-term investment plan, the board would need to determine what exactly that means. Do we only use the interest earned from whatever short term investment is used, ie CDs or is the principal used over a period of years?
So, if this is the option chose, the board through input from members, could decide for example, to use $1000 per year for the next few years. With that example, we earn less and less interest each year because the principal is less each year. Eventually, the money is depleted.
Again, it depends on the specifics that would need to be determined once an overall direction is set through the choice of one of the two options.


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