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LSLA Partners with
Maine Community Foundation
Earlier this year, the LSLA Board of Directors
reviewed the investment strategy that has
been in place for the past several years to
guide the investment of our endowment and
other reserve Funds. Since the Endowment
Fund was created back in 2011, the funds
were held in a Merrill Lynch account, but the
principle was relatively low and the fund did
not generate much growth or income. Through
additional gifts, the fund had grown to over
$13,000 by the end of 2014.
The LSLA Reserve Fund reflects money that
has been put aside over the years to be used for
special contingencies, a possible emergency
with the dam, and other non-operating
investments or improvements. These funds
come primarily from any surpluses realized
in our annual operating budget. At year-end
2014, we had almost $138,000 in reserves,
and the funds were invested in 5-year CDs.
However, as the CDs mature, if we rolled over
these assets into new CDs the interest rates
would be very low due to market conditions.
After considering other options, the LSLA
Board decided to partner with the prestigious
Maine Community Foundation to manage both
the Endowment Fund and the Reserve Fund
for the association. The Maine Community
Foundation is a statewide public foundation
whose core purpose is to work with donors
and other partners to improve the quality of
life for all Maine people. With a professional
staff of 30 and a volunteer Board from across
Maine, the foundation is a respected and
trusted leader in philanthropy. The community
foundation manages almost 1,500 funds with
a total value of $380 million, including more
than 150 endowment funds for various non-
profits around Maine.
The Maine Community Foundation (MCF)
will invest our funds, along with the other
assets in their Primary Investment Portfolio,
with a goal to preserve and enhance the real
value through prudent institutional investment
strategies. MCF offers professional investment
management, regular reporting and updates to
the LSLA Board, and easy access to withdraw
our funds if needed. The rate of return for
MCF’s primary portfolio over the 5 years
ending in 2014 was 8.9%, so our funds should
generate higher income and growth over time
as compared to the alternative of reinvesting
in CDs.
Over the past five months, we have transferred
all of the endowment and reserve funds over to
MCF. At the end of September our Endowment
totaled $15,235 and our Reserve Fund
totaled $139,263. Much more information
about Maine Community Foundation may be
found on their website at
www.MaineCF.org.
Through partnering with MCF, Little Sebago
Lake Association joins a long list of many of
the most highly respected non-profits and
other community organizations across Maine.
And on behalf of our members, the Board
of Directors was proud to learn that Little
Sebago was the first Lake Association to join
in partnership with the MCF family. Here’s to a
long and successful relationship!