fiscal policies handbook

The basic strategy for all MLA investments is to achieve satisfactory earnings with reasonable risk. MLA mutual fund investments are open to all investment options except for donations restricted to socially responsible investing.

MLA will invest in at least one socially responsible fund. (Minutes, 10/1995, X.C.2)

Fidelity investments are managed by Fidelity Portfolio Advisory Services. (Minutes, 06/1997, X.C.5) The Board suggests that the recommendations of Fidelity Portfolio Advisory Services be followed. (Minutes, 6/2000, X.C.4)

To meet acceptable accounting practices, the quarterly payments to Fidelity Portfolio Advisory Services for investment management are to be taken from the operating budget, not the fund itself. (Minutes, 10/2003, X.C)

All permanently restricted investments are reclassified as temporarily restricted investments (Board minutes, 02/2012, 09.g)

The Board voted (Email, March 2018) to clarify that with the 2012 reinstatement of the Investments Subcommittee (Online Meeting, December 2012), the Board no longer requires an ad hoc committee to evaluate the Association’s investment account performance and risk profile every four years beginning in the Fall 2013. (Board minutes, 09/2011, 09.g; 12/2012, 04; Board minutes, 05/2018)

The purpose of the MLA Fund is to allow MLA to become financially sound and able to sustain unexpected fiscal losses. Eventually, the Fund’s purpose also will be to generate earnings for MLA use. To support the programs of the Association, the Board may approve the use of unrestricted investment assets also known as the MLA Fund, as follows: the December 31 value of the MLA Fund over the past three calendar years is averaged. Up to 5% of that average or $25,000 (whichever is greater) may be used. (Minutes, 06/2000, X.C.7) [Note: the MLA Fund, capped at 5%, is specifically exempted from a September 2012 (09.g) Board decision to cap other endowment spending at 4.5%. As far as is known, the June 2000 policy is still in force for the MLA Fund.]

Unrestricted donations shall routinely be deposited to the MLA Fund unless otherwise directed by the Board. (Board minutes, 06/2009, IX.i)

All gifts of stock to the Association are sold immediately upon receipt and deposited to the MLA Fund or other fund(s) designated by the donor. (Board minutes, 09/2008, IX.C)