The Endowment Fund is a “Permanently restricted” fund. The principal in this fund shall remain permanently intact in perpetuity, or until the occurrence of a specified event, or for a specified time as described in the terms of the endowment gift. Sub-accounts may be included in this fund with interest tracked on a prorated basis.
Although it is the Board’s desire that most gifts or bequests of cash and/or securities be placed into the General Library Endowment Fund, a donor may ask to create an individual endowment fund. However, the Board asks that the initial gift be at least $25,000 or for the amount to be increased to a minimum of $25,000 within three years from the initial gift. Failing to meet these criteria, the gift would be placed into the General Library Endowment Fund.
Only net earnings of the fund (defined as cash dividend and interest income) will be utilized to support Topsham Public Library activities to be determined from time to time by the Board of Trustees and pursuant to donor restrictions. The Board has the power to spend principal from the Fund to meet emergency situations. When the Board spends principal, a reimbursement plan will be established with the Endowment Trustees for repayment of the principal. Repayment will begin the fiscal year following the withdrawal at a rate that will achieve total repayment of the principal within five years.
Donors will be requested to sign a standard form providing discretion to the Board of Trustees in the disbursement of donated funds. This may include the stipulation of the conditions under which these funds will be transferred to the Board Designated portion of the Endowment Fund to be used for the general purposes of the Topsham Public Library. Other exigencies might also be noted on this donor form.
The Endowment Fund will be invested and managed according to the Investment Policy of the Topsham Public Library.
The Topsham Public Library reserves the right to refuse gifts that are deemed inappropriate.