Changes

One of the funds maintained on the books of The Augustan Society, Inc., is the '''Investment Fund'''. This fund is restricted by tradition, and may be restricted by the terms of an original grant. The grant not yet having been found in the files, that point is at present indeterminate.

The original Investment Fund monies came primariy from the sale of the [[Villa Augusti]] in 2007. The funds to purchase that property came from a grant from the late Cdr. George Balling, OAE, who gave the Society $300,000 with the restriction that it be used for capital purchases only. (The preceeding preceding restriction is from living memories, the text of the grant not being available.) Some will argue that the money from the sale (which was probably less than the orininal original amount) still carries this restriction. Some will further argue that the full amount of the initial grant should be so restricted, thus encumbering contributions to the Fund not yet made.

It has been the practice that the principal of this fund is restricted to capital purposes; that is to say it is held in reserve for the purchase of a new [[Headquarters ]] at some point in the future. It has also been the practice that the interest earned may be withdrawn to service rental property owned as needed to cover deficits in lieu of a permanent Headquarters. Finally, any interest not withdrawn in any calendar year is considered to have been added to the principalGeneral Fund.

One would expect Because of the above practices to have maintained vagaries of the original investment. Howevermarket and the withdrawal of interest, the market value of the fund is (as of 2014) may at times be lower than the original investment of $285,000. This is because an unavoidable aspect of investing in the money has been invested in a combination of CDs, GNMAs, and Corporate bonds whose market value varies over time. It is expected that at the maturity of each instrument, but does not violate the full purchase value will be obtainedoriginal intent.

Some will argue One exception to the above was a fundraising campaign in 2013 that because such market value cannot be guaranteedgenerated about $6000, that no withdrawals should which was added to the fund. This was to be permitted except the balance is over first year of a ten-year campaign to double the original investment amountfund value. Others will argue Given that it fell short by 80% (and thus would take 100 years to reach its goal), the balance should be over Board elected to discontinue the original grant amount. Recent cash-flow challenges and the expansion of rented storage units have made these goals infeasible, but long-range plans should include these goalscampaign.

The [[Board]] has not seen fit to systematically add to the Investment Fund on an annual basis. As a resultHowever, even without the decline in value described above, current contract with the Metcalfs for the purchasing power rental of space in their home for the fund has declined significantly. Some will argue that increasing Headquarters obliges the value Society to add 10% of each year's gross revenues to the capital portion of this fund to keep pace with inflation is a necessary obligation. Accounting has, at times, delayed such designations.

The one exception investment philosophy is to the above was a fundraising campaign invest only in 2013 that generated about $6000, which was added to investment-grade instruments with the fund (bringing the nominal pricipal value to $291,000)goal of 5% APR growth. This was has not always been possible or easy. Current instructions are to move to be riskier investments if that's what is needed to obtain the first year of a ten-year campaign 5% growth target, while still restricting investments to double the fund valuemoderately conservative instruments. Given that it fell short by 80% ( The [[Finance Committee]] has been asked to formulate and thus would take 100 years to reach its goal)confirm the investment philosophy, but has not yet begun the Board elected task. The [[Treasurer]] has been directed to discontinue the campaignwork with our investment firm to develop and propose such a philosophy.