Walters Family Foundation

Nonprofit Financial Sustainability

We believe that in order to provide significant ongoing benefits to charitable organizations and causes, a financially sustainable nonprofit culture must be established. Intelligently investing donations, and using interest, dividends, and stock/bond price increases earned on these investments will allow the Walters Family Foundation to provide grants to charitable organizations. Our strategy is to preserve the principal for continuous investment. Using this model, we’re able to ensure that our donors contributions can exist for generations taking into account the market fluctuations and cyclicity and serve the public interest in a much greater capacity than simply redistributing donations as one-time grants. Donating to Walters Family Foundation isn’t just a donation, it’s using your charitable giving to establish a philanthropic legacy.

Our Core Competency | Intelligent Investing for Grantmaking Strategies

We seek out and retain the best financial consultants who develop effective investment strategies to ensure that our foundation’s endowment is invested responsibly and that our donors contributions are sustained, allowing for continuous grantmaking to charities. By establishing an intelligent investment strategy, we’re able to move forward with decisive actions in order to grow our endowment and protect our donors’ gifts. We strongly believe that a modern charitable foundation has an obligation to grow its donor’s contributions to ensure that these gifts create maximum impact on good works and charities. For almost 20 years, the Walters Family Foundation has granted nearly 4 million dollars to charitable causes.

Advanced Charitable Giving and Grantmaking

In order to sustain our endowment and continuously grow our donor’s monetary gifts, we are constantly evolving our sustainability strategy to adapt to the current economic landscape. Our continuing ability to benefit charitable organizations is the best endorsement of our ability to sustain our donors contributions. Please observe the following points which overview our Investment Policy.

Capital Market Material Adverse Change:

In the event the capital markets, such as equities and fixed-income, display sharp negative loss in excess of -17.5% for equities and/or -10% for fixed-income within a short period (1-3 months), the advisor may shift assets to safety by relocating a portion of the portfolio (no more than 25%) from riskier assets to cash and short-term treasuries. Also, a portion can be allocated to alternative assets that would benefit from these negative market events. This flight to safety provision for the Foundation’s portfolio assets would be temporarily exempt from the guideline target asset allocations given the allocation changes would be considered a short-term action.

Speculative Holdings

High yield or non-investment grade bonds (speculative securities) can only be held through exchange traded fund (ETF) and/or mutual funds. No speculative individual securities are permitted, such as individual non-investment grade bonds. Should there be a downgrade of an investment grade bond to a non-investment grade rating then the security should be sold from the portfolio within seven days. Inasmuch speculative securities are prohibited as individual security investments, mutual funds which invest in commodities, purchase of equity securities on margin, selling short, real estate mortgages, options and futures, collateralized mortgage obligations (CMO’s) or other specialized investment activities are permitted given the mutual fund has daily liquidity, transparency on pricing and has a history of performance. No more than 7.5% allocation is permitted to any single mutual fund, unless there is special permission of the board of directors or two board officers.