Investment Total Return Policy  

The Scranton Area Foundation has adopted a total return policy in an effort to maintain or increase the true value of endowment and its distributions to the community now and in the future. By utilizing a total return policy more return will come from capital appreciation rather than only current income of permanent funds.

Each year the Board of Governors and its Investment Committee establishes a spending percentage of its asset base. This amount may be more or less than actual income from dividends and interest. A total return policy means that interest, dividends and capital appreciation are considered as a single amount in the fund.

The spending rate holds spending in check through lucrative years, and enables spending in less productive years. Thus, donors funds are being managed to provide a balance between current and future community needs and opportunities. Investment decisions can be based on flexible long-term strategies which are not subject to sudden changes in interest rates or market value. Grant recipients and the community will be able to count on funds from their community foundation which will be made available for distribution based not only on changes in current investment income.

The Scranton Area Foundation funds are invested with PNC Advisors and Penn Security Bank and Trust Company in Scranton. PNC is financial consultant to the Foundation and provides custody, investment management and administrative services.

Michael G. Ostermayer ,Chief Investment Officer, and William J .Calpin, Jr. ,Senior Vice-President represent PennSecurity Bank and Trust. Paul W. Kamor,Vice President and Deborah Kolsovski,Senior Vice President and Managing Director represent PNC Advisors.

The Foundation Investment Committee reviews fund performance on a quarterly schedule and reports to the Board of Governors. The Scranton Area Foundation Investment Policy and Guidelines are reviewed on a yearly basis and any recommendations for changes are reported to the Board for discussion and action

The Scranton Area Foundation publishes a yearly "Report to the Community". Included in the report are Foundation funds, recent grants and a report of our most recently audited financial statement.

But most of all we are pleased to recognize and thank our many donors and friends.

Again, many thanks to those who make it possible.

DOWNLOAD PDF: Report to the Community (NOTE: this is s 3MG PDF file)