The South Wedge Planning Committee

Canal Heritage

Endowment Fund

In 2000, the South Wedge Planning Committee introduced the Canal Heritage Endowment Fund. This endowment marks a major step towards insuring the long-term financial health of our organization and the South Wedge neighborhood.

About Our Endowment

For the past two centuries, the South Wedge has played a vital role in the Erie Canal system. The old stone warehouse at One Mt. Hope Avenue was originally constructed as a freight depot for Canal barges in 1822, and the development of our community has been closely tied to the Erie Harbor ever since. Today, the South Wedge Community continues to be a link between the architectural and cultural roots of Rochester 's past, and the renaissance of the Erie Harbor on the Genesee . SWPC takes pride in its connection to the Genesee River and to the Erie Canal system. By contributing to the Canal Heritage Endowment Fund, you will be making an investment in the success of the South Wedge and in the renaissance of City Living in Rochester .

How will my gift be used?

Contributions to the Canal Heritage Fund are tax deductible. Funds raised will be placed into a variety of investments to secure the financial future of SWPC. A portion of the interest earned from those investments will be used to supplement the organization's yearly operating costs.

We welcome your support, and will be glad to work with you personally to meet your gift giving and estate planning goals. If you would like more information on the Endowment, or would like to make an appointment to discuss your contribution, feel free to contact our Executive Director, Daniel Buyer, at (585) 256-1740 ext. 102 or at dbuyer@swpc.org. Below is a copy of our Endowment Policy.

Statement of Investment Objectives and Guidelines

South Wedge Planning Committee Endowment Fund

Introduction

This investment policy is intended to provide our investment manager with a clear understanding of the investment guidelines and objectives of the South Wedge Planning Committee Endowment Fund. The ultimate responsibility for these funds rests with the board, and specifically with the SWPC Finance Committee (or with a designated Endowment Committee, if deemed necessary by the Board). This committee will be lead by the SWPC treasurer.

The Goal

The Goal of the Endowment Fund is to build the capital resources of the South Wedge Planning Committee to insure our future as an independent, financially stable community-based organization.

Objectives

•  Preserve the principal, defined as original contributions adjusted for inflation, while optimizing the endowment's total return. *

•  Over one market cycle, defined as five years, an annualized net return ** equal to an average over the market cycle of 11 percent.

*Total Return is defined as interest dividend, income plus principal appreciation.

**Equal to appreciation plus interest/dividends

Qualifications for

the

Investment Manager

The individual/firm hired to manage the SWPC Endowment Fund must be a licensed, registered broker of securities registered with NASD.

Duties of the

Investment

Manager

•  Invest the SWPC Endowment Fund in a competent and fiscally responsible manner within the stated endowment guidelines.

•  Work diligently to assure that all investment objectives are met.

•  Monitor results using a method accepted by the Finance Committee and/or the appointed endowment committee.

•  Provide a detailed report at least quarterly to the Finance/Endowment Committee and a detailed presentation at least annually to the Board.

•  Take appropriate action if stated objectives are not being met.

•  Review and propose for consideration any revisions to the existing guidelines that would improve results, and/or communication with the Endowment/Finance Committee and the Board.

Duties of the

Finance/Endowment

Committee

•  Recommend guidelines and objectives for Board Approval

•  Recommend a qualified investment manager for board approval

•  Communicate with investment manager and collect quarterly reports

•  Monitor results to assure objectives are being met and guidelines are being followed.

•  Recommend appropriate action to the Board if objectives are not being met.

•  Report to the Board at least quarterly.

•  Arrange for the investment manager to make a detailed presentation to the Board at least annually.

Acceptable Asset

Classes

for Investment

•  Common & Preferred Stocks

•  Corporate Bonds

•  U.S. Government Securities

•  Convertible Securities

•  REITs

•  Money Market Funds

•  Mutual Funds

All assets should have a readily ascertainable market value and must be readily marketable. The fixed income investments should carry a Moody's ratings of A and above, or the equivalent unless approved by the Board of Directors. All other Classes of investment, including direct loans, are unacceptable unless approved by the Board.

Asset Allocation

The asset mix of the endowment fund is to range within the following limits:

•  Fixed Income Securities and Preferred Stock     25-40 percent

•  Equity and Growth Funds           60-75 percent

•  Money Market Funds           As needed to balance

A fund advisor is expected to concentrate no more than 20 percent of the market value of the endowment in any single industry and not more than 5 percent in any single company without approval from the Board of Directors.

Endowment

Spending

Policy

In order for any funding to be withdrawn, the value of the principal must exceed $100,000. No funds may be withdrawn without a super majority vote (3/4 vote) if the fund is below that amount. Once the endowment has crossed that threshold, the Board of Directors may by a simple majority vote withdraw an annual amount up to 5 percent of the fund's average total value over the last three years. This funding may be applied to the organization's general operating budget, or to any project or program designated by the Board. An additional 2 percent may be drawn for use in a standing discretionary fund to address specific organizational needs. A withdrawal of more than 7 percent requires a super majority of the Board of Directors.