The Problem
The graphs of our expenses and income foretell an inevitable truth - without additional sources of income, the Sylvan Lake Seniors Association will not be able to meet its expenses within six years. Because we can only use AGLC income (Bingos, Casinos) for a limited number of our expenses, we have to rely on grants to be able to pay the other expenses, especially salaries.
Grant History and trends
The chart below shows the total grants received by the Association from all sources since 2006:
The Solution
The Sylvan Lake Seniors Association is going to establish an endowment fund under the auspices of the Community Foundation of Central Alberta. It is an organization established under federal government direction that allows non-profits like our Association to plan for guaranteed, sustainable funding in the future. The CFCAB currently manages over $20 million in assets in over 200 endowment funds that have earned an average of over 7% over the past 10 years. It is required by government regulation to pay out annually a minimum of 3.5% of the total funds in each endowment. Our Association benefits by being part of a diverse portfolio with low investment fees. All donations to our endowment fund would qualify for maximum tax advantage. As the endowment fund grows, the Association will gamer steady and predictable earning that will ensure our sustainability in the future.
An endowment fund provides a simple, efficient way to build capacity and sustainability. Establishing an endowment with a Community Foundation is a safe, secure way for the Association, our members and our donors to be sure that the fund's principal will not be spent and that it will grow over time, providing a source of lasting income. When we create an endowment fund, we generate predictable, unrestricted funding for long-term sustainability through a continuous income stream that ensures we will continue· to impact the lives of seniors in Sylvan Lake well into the future.
Our hope is to grow our endowment fund so that we can keep the registrations down.