Heritage Chorale - Targeted Funds Management

The Chorale recognizes its commitment to donors to apply each Targeted Fund’s assets exclusively to the purposes specified for each Fund, except under highly unusual circumstances. Accordingly, the Chorale Board of Directors has established policies and procedures for the Targeted Funds Program to be sure the program is managed consistently from year to year. These policies and procedures reflect four principles underlying the Targeted Funds Program:

1. The purpose of the Targeted Funds Program is to accumulate money over several years to enable the Chorale to have the funds required for activities or purchases that would not be feasible within the operational budget for a given year.

2. Except as specified in paragraph 4 below, the Chorale will, under almost all circumstances, spend a specific Targeted Fund’s money only for the purposes specified for that specific fund.

3. Targeted Funds Program continuity will be supported by a policy of not spending the total balance of any individual fund in a single year. Typically the spending from an individual fund in a given year will be no greater than 80% of the fund’s total.

4. Under highly unusual circumstances, if the Chorale’s continuity is at risk, the Board of Directors may spend Targeted Funds Program money as required to maintain the Chorale’s programming and financial health.

The experience of each Targeted Fund will be tracked separately, and records will be kept of each Fund’s balance, contributions, earnings, and expenditures. As part of its annual planning process, the Chorale Board of Directors will determine whether to apply money from any Targeted Fund towards an expenditure falling within the Fund’s purpose. Reflecting the Targeted Fund Program’s goal of accumulating funds for specific types of expenditures, there may be no expenditure of Targeted Fund money in some years. In highly unusual circumstances, such as the Chorale’s annual fundraising programs under-running their goals by such a large amount that the Chorale’s concert season or its financial health are jeopardized, the Board of Directors may tap Targeted Funds assets to ensure the Chorale’s continuity.

The Targeted Funds Program includes provisions for establishing additional Targeted Funds, for dissolving a Targeted Fund if it no longer benefits the Chorale, or for other infrequent situations. Additional information about such details is available from the Gifts and Bequests Chairperson.