ENDOWMENT

Endowment

Objective

1. To establish a source of enduring financial stability for the Arkansas Museums Association (AMA) in the long term.

2. To allocate resources for programs and educational initiatives that align with the AMA's mission but exceed the limitations of the annual budget. This does not encompass financial support for the AMA's yearly conference.

3. To create avenues for the growth and enhancement of AMA's members through initiatives like scholarships, training, and benefits for AMA personnel.

Rationale

1. Ensuring Long-Term Financial Security for the Arkansas Museums Association (AMA):
   The primary goal of this endowment is to establish a sustainable and stable source of financial support for the Arkansas Museums Association. By creating a well-structured endowment, the AMA can better insulate itself against financial uncertainties and ensure its continued operation, growth, and contribution to the community.

2. Supporting Exceptional Programs and Educational Resources:
   The endowment serves as a vital source of funding for programs and educational resources that are in alignment with the AMA's mission but go beyond the capacity of the annual budget. It enables the association to expand its reach and impact by offering a diverse range of educational and cultural experiences to the community.

3. Exclusion of Funding for the AMA Annual Meeting:
   It's important to note that this endowment does not extend to the financing of the AMA's annual meeting. This is in accordance with the recognition that the annual meeting already possesses its funding mechanisms and is not within the purview of this endowment's objectives.

4. Member Development and Enhancement:
   Beyond its role in securing financial stability, the endowment will be used to create opportunities for the development and enrichment of AMA's members. These opportunities may include scholarships, training programs, and benefits for the AMA's dedicated staff members. By investing in its workforce, the AMA ensures its personnel can continue to provide excellent services and outreach to the community.

Operational Framework

The endowment will be managed in a manner that aligns with the highest standards of fiduciary responsibility and in compliance with relevant legal and ethical guidelines. This includes but is not limited to:

1. Investment Strategy:
   The endowment's funds will be prudently invested in a diversified portfolio to ensure long-term growth and sustainability. The investment strategy will be devised to balance the objectives of capital preservation and growth.

2. Annual Allocation:
   A portion of the endowment's returns will be allocated annually to support AMA programs and initiatives that meet the criteria outlined in the endowment's purpose. Each year a donation of $500 in the name of the Peg Newton Award winner is added to the account

3. Scholarships and Development:
   An additional portion of the annual returns will be earmarked for scholarships and staff development, furthering the capabilities and expertise of AMA's members and personnel.
   

4. Accountability and Transparency:
   The management of the endowment will be characterized by a high degree of accountability and transparency. This includes regular reporting to the AMA's governing body and members to ensure that the endowment is serving its intended purpose.