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11/21/14

Class of 1954 60th Reunion Update on the Legacy Gift Memorial Hall Preservation Fund



Class of 1954 60th Reunion Update on the Legacy Gift Memorial Hall Preservation Fund


We are pleased to report that the Memorial Hall and the Class of 1954 Memorial Hall Preservation Fund are doing very well.  Here are some details that have made this success possible.


For those who did not have an opportunity to visit Memorial Hall during the 60th Reunion, and see firsthand what the Class has accomplished, Memorial Hall sparkles as a revered tribute to all who made the ultimate sacrifice.  The floor glistens, the chandeliers sparkle, the loss memorials are up-to-date, and there is a constant stream of reverent visitors honoring those who made the ultimate sacrifice.  Memorial Hall has truly become a top destination when visiting the Academy Yard.


Well done to all who have made our Memorial initiative a lasting, worthy and noble effort.  We periodically hear from survivors of those honored on the loss memorials about how touched they were to finally know that their loved one’s sacrifice has been appropriately recognized.  


Class of 1954 Memorial Hall Preservation Fund Financial Condition


When the Memorial Hall renovation was completed, the Class established an endowment (the Class of 1954 Memorial Hall Preservation Fund) to ensure that the Hall would be maintained at its new enhanced level. A goal for funding the Preservation Fund was established at $400,000 so that at a return on investment of 5%, the endowment would produce $20,000 annual income – enough to cover normal anticipated maintenance expenses.
In January 2007, after all the renovation bills had been paid, we had $137,000 of donations remaining for seed money to start the Preservation Fund.  The assets are invested and managed as a part of the Foundation’s diversified investment portfolio.


As of October 31, 2014, the Fund has invested capital of $421,358.  This remarkable increase resulted from the consistent generous Class financial support for our Memorial Hall effort, the positive market performance of the invested funds, and lower than expected expenditures to maintain Memorial Hall.


The Foundation has informed us that their diversified investment portfolio performance over the last 10 years was 7.5% annually – a record that probably will be difficult to sustain.  Although invested funds are subject to market ups and downs, a long term annual earnings rate of 5% should be a realistic expectation.

Class of 1954 Preservation Fund Fiscal Reports


Each month the Foundation’s Comptroller provides us with a “Class of 1954 Fiscal Report” which shows Preservation Fund investments, Memorial Hall expenditures, Foundation assessed management fees, and new Preservation Fund gifts and pledges.  The report is cumulative for the Foundation’s Fiscal Year (FY) which runs from July 1 to June 30.  Here’s a summary table of key items from FY 2012 to the October 31 Year-to –Date report:







Summary Table of Class of 1954 Fiscal Report Key Items
Fiscal Years FY 2012 – FY 2015 YTD


Item
FY 2012
FY 2013
FY 2014
FY 2015 YTD
Maintenance of Mem. Hall
$1.8
$3.3
$4.2
$3.0
Foundation Mgt. Fee
$3.5
$3.6
$5.1
$1.4
New Gifts & Pledges
$9.2
$11.9
$4.3
$1.6
Pres. Fund Investment
$351.1
$389.0
$433.3
$421.4
($ 000)


Maintenance expenses are mostly related to the updating of the loss memorials, and they have fortunately been less than forecasted.
The management fee rate is set periodically by the Foundation’s Board of Trustees and is currently at 1.25% of the value of the invested funds at the beginning of the Fiscal Year – July 1st.  The fee is billed quarterly through the FY so we do not have a large one time yearly expense.  


The monthly Fiscal Report is available to us online and we do check that the reported activity is reasonable.  The Foundation’s Comptroller, Associate Director for Legacy Gifts, and the Director of Alumni Services are all available to clarify and provide details on the reported items.  In short, the Class is receiving excellent and professional cooperation from the Foundation staff.


For the future we expect that expenditures should remain at the rate experienced in recent years.  No major repairs or renovations are expected. This situation could of course change, but for other than unpredictable major items, we should be able to handle what is required.


Memorial Hall Management and Financial Controls
 
Only changes authorized by the USNA Memorials Committee are permitted for Memorial Hall.  Routine preservation activities have been pre-approved.  


Acquisition of material and services for Memorial Hall are obtained by the USNA Contracting Office following government procurement regulations.  The Foundation’s Controller arranges for payment to   the Academy for these items from the Preservation Fund following established accounting and audit procedures.  Receipt and processing of funds from new gifts and pledges are handled by the Foundation’s Development Division under their accounting system controls.


We are confident that financial and other activities related to our Memorial Hall effort are conducted in a business-like manner with appropriate controls in place.


How to Make New Preservation Fund Gifts and Pledges


New Preservation Fund gifts and pledges are always welcome and helpful for our legacy gift effort.  The added funds will give the Fund the necessary cushion to adapt to changing market conditions and unanticipated preservation expenditures.
 
You can make a donation or pledge for the Memorial Hall Preservation Fund in several easy ways.


  1. Write a check to the USNA Foundation and indicate on the memo line: “Class of 1954 Memorial Hall Preservation Fund”


Mail your gift to the Foundation in a recent contribution envelope provided by the Foundation or address your envelope to:
U.S. Naval Academy Foundation
Development Division
291 Wood Road
Annapolis, MD 21402


  1. Make an online gift by going to: http://www.usna.com.
Select “Support The Academy”. On the drop down menu click “Make a Gift”.  Then select “Click Here to Donate to Your Class Project”. Enter 1954 in the Class Year block.  In the Class Funds Section enter the amount of your gift next to the “’54 Memorial Hall” selection and follow the prompts.


  1. If you have questions or have a special gift situation call 410-295-4115 to speak with a Foundation gift processor.


Thanks again for all your much appreciated support.  Working with the
Great Class of 1954 is truly gratifying – as a Class, we have accomplished much for which we all can be proud.

-- Bill Montgomery -- George Zeberlein

1 comment:

Wally Anderson said...

I am very proud of our class. What we have done will always be appreciated.