Allocation of Gifts Received:
The following allocation formula shall apply to all incoming revenue pledges and gifts received by The Grace Foundation:
15% Rochester Central Lutheran School (RCLS)
70% RCLS General Endowment Account
All funds held for near-term Administrative and RCLS obligations shall be held in checking or in a money market account.
General Fund: Greater than five years – Scholarship Fund: Greater than five years
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 shall be reviewed at least annually and rebalanced, if necessary, to stay within the target allocation described below. Deviations greater than 5% require rebalancing. Underspent administrative funds are to be reallocated at the Board’s discretion. Movement of funds from one account to another may be made at the Board’s discretion.
Target Asset Allocation – Long-term Investments
Large Cap =40-50%
Small Cap =20-30%
International = 15-25%
Real Estate = 0-10%
Cash/Fixed Income =0-10%
Investment Committee: The Grace Foundation Board of Directors