Allocation of Gifts Received:
The following allocation formula will apply to all incoming revenue, pledges and gifts received:
20% Partner schools
70% Long-term investment
All monies held for administrative and partner schools shall be held in a cash account.
Any money that is needed in less than 5 years should not be invested such that the principal is at risk.
The Grace Foundation is a non-profit organization and is tax-exempt.
Unique Preferences and Circumstances:
Investments shall be made following a passive index based approach using no-load mutual funds or exchange traded funds. The portfolio should be reviewed at least annually and rebalanced, if necessary, to stay within the target allocation described below. Deviations greater than 5% require rebalancing. Any new large addition over $50,000 to the portfolio should be invested gradually. Underspent Administrative funds are to be reallocated at year-end at the Board’s discretion.
Target Asset Allocation – Long-term Investments
Large Cap = 30-40%
Small Cap = 20-30%
International = 10-20%
Real Estate = 0-10%
Fixed Income = 0-10%
Investment Committee: The Grace Foundation Board of Directors