Appendices (adopted November 2019)

Appendix A
Asset Allocation Guidelines for Long-Term Investment Portfolio

In general the equity percentage of the portfolio, consisting of the equity portion of any index fund as well as holdings of stock in individual companies, will be between 60-70%; the cash and fixed income portion between 30-40%.

The Investment Committee may authorize increasing the equity portion to as high as 75% or as low as 50%. To go to an equity position higher than 75% or lower than 50% requires Board approval.

To avoid losses due to sudden changes in asset values, any adjustment of the allocation that requires a sale of more than $10,000 of assets shall be implemented by selling not more than $5,000 per month.

Appendix B
Madeleine Ellicott Founders Fund

Purpose: Established in 2016, the Madeleine Ellicott Founders Fund (MEFF) is an investment-based endowment fund intended to generate a stable income stream to support the general operations of the League. Under specified conditions outlined in the Investment Policy, MEFF assets may be liquidated to meet the financial needs of the League.

Duration: Perpetual

Primary sources: Planned giving (appreciated stock gifts, charitable trust gifts, estate bequests)

Use of funds: The general policy is to preserve the corpus of the MEFF; a significant reduction in the fund’s assets requires membership approval. The amount to be made available to meet operating needs of the LWVMD will normally be determined as part of the annual budgeting process. Annual distributions from the endowment fund shall be based on the following principle, contingent on market conditions and League requirements:

  • an amount equal to up to 4% of the average, as of the end of each of the immediately preceding three years, of the total value of the Madeleine Ellicott Endowment Fund. Until three years have elapsed, the 4% will be calculated on the value of the account on July 1, 2019.
    realized income not withdrawn as part of the annual allocation will be reinvested in the MEFF.
  • during the fiscal year, upon recommendation of the Investment Committee, the Board may approve additional distributions up to 15% of the average value of the MEFF.
  • any proposal to sell more than 15% of MEFF assets and spend the proceeds must be approved by League membership at Council or Convention.
Appendix C
Education Fund

Purpose: The Education Fund (EF) solely finances League activities that inform the public about election and policy issues in an impartial manner. Examples include League-sponsored voter services, such as VOTE411, print Voters’ Guides and candidate forums, and nonpartisan educational programs and publications, such as Report from State Circle. Programs and materials supported by the EF do not reference League positions or advocate on public policy issues.

Duration: Perpetual

Primary sources: Individual donations and grants.

Use of funds: Funds may be withdrawn to support eligible expenditures, including staff time, authorized by the state or local League in its annual budget or by action of the League Board.

Local League funds: The Education Fund holds in trust equity accounts for 14 current and lapsed local Leagues, which are governed by the same purpose and restrictions as the EF.

Appendix D
Nancy Soreng Young Professional Advancement Fund

Purpose: Created in 2018, the Nancy Soreng Young Professional Advancement Fund (YPAF) aims to introduce younger generations to the League’s tradition of nonpartisan voter education and issue-based advocacy by providing stipends and training for interns and young professional volunteers.

Duration: Perpetual

Primary sources: Individual donations and grants; possible bequests.

Use of funds: YPAF funds may be used to pay stipends, as well as to reimburse travel or parking costs, registration fees, League membership dues and other work-related expenses incurred by interns or young professional volunteers during their service term with the state League. YPAF funds may also finance staff time providing training and supervision, related office expenses, publicity for recruiting and other costs as authorized by the LWVMD Board.

Appendix E
Lois Stoner Scholarship Fund

Purpose: Created in 2012, the Lois Stoner Scholarship Fund (LSSF) provides financial assistance to allow League members to participate in a LWVMD courses or workshops without charge, when paying the registration fee might otherwise prohibit their participation. To qualify for an LSSF scholarship, a League member must submit an application affirming that the registration fee represents a financial hardship; a member’s eligibility is restricted to one workshop or course per year.

Duration: Perpetual

Primary sources: Individual donations and grants.

Use of funds: The State Director notifies the Treasurer of approved scholarships. The amount of the registration fee is withdrawn from the LSSF and credited to the LWVMD workshop or course.

Appendix F
Fair Maps Fund

Purpose: The #Fair Maps Fund (FMF) is dedicated to advocacy and education efforts directly related to achieving redistricting reform in Maryland.

Duration: Temporary.

Primary sources: Individual donations and grants.

Use of funds: FMF funds may be used to support eligible expenditures, including staff time, in accordance with the annual budget or by action of the LWVMD Board. The FMF may be fully depleted to further LWVMD’s ongoing campaign to reform the redistricting process in Maryland.