Proposal to transfer funds from reserve to endowment fund
For Saturday's Board Meeting:
The Budget Review Committee is recommending that a one time amount of $50,000 be transferred from LITA's reserve balance into the LITA endowment funds.
The current amount in the Reserve is: $432,541
ALA requires the Divisions to maintain an amount equal to at least four months operating costs (approx. $146,246). LITA has chosen to maintain a reserve in an amount equal to at least six months operating costs (approx. $219,366). [LITA Manual Section 12]
A previous LITA Board voted some time ago to transfer funds into the endowment fund in order to build up that base. The approved number of transfers (4) was not completed before ALA stopped all transfers of funds by Divisions into their endowments for financial reasons. ALA has lifted that ban and so we may now complete the transfer. LITA held the $50,000 in the reserve anticipating that at some point we would again be permitted to transfer funds.
Transferring $50,000 into the endowment at the end of FY14 will bring the total endowment to $201,424 plus whatever we gain or lose during the final four months of the fiscal year.