TO WHAT ENTITY DO PEOPLE WRITE CHECKS OR INCLUDE IN THEIR WILL?
Donors can give their gifts to their respective Community Trust Funds or the at-large Paradox Community Trust. The following are the names of the three Community Trust Funds:
WHAT IS THE RELATIONSHIP BETWEEN EACH COMMUNITY TRUST FUND BOARD AND THE PCT?
Each Community Trust Fund Board is a decision-making body that will determine the criteria for awarding grants and distributions from its Community Trust Fund, as well as select organizations to award grants.
The PCT Board will be responsible for administrative functions of the PCT, including managing funds, accounting, reporting to each Trust Fund Board on their fund’s accounting, and writing grant checks for the Trust Fund Board’s distribution.
HOW WOULD FUNDS BE DISTRIBUTED BACK TO THE COMMUNITIES?
The Community Trust Fund Boards will advise the PCT when grants have been awarded, and the PCT will write checks to the grant awardees. The PCT will provide accounting functions and provide financial reports to the Boards so that each committee knows how much money it has to distribute.
WILL THERE BE MANAGEMENT FEES?
No, currently management fees are taken on by the Telluride Foundation. Additional fees could include contractual costs such as accounting services or grant administration services.
WHAT ASSURANCES ARE IN PLACE FOR PCT INVESTMENTS?
The management of foundation (public charities) investments is regulated by state and federal law. Colorado State law imposes fiduciary duties on foundations and their internal and external investment managers through the “Uniform Prudent Investor Act”. Federal law regulates private foundation investment management practices through the prohibitions against self-dealing, assessment of penalties for making investments that jeopardize the existence of a foundation, and through assessing penalties for a foundation having investments that qualify as excess business holdings.
There are both specific responsibilities incumbent on foundation boards and generally accepted principles for investment management. These best practices are universal to effective management of investment portfolios as applied to fit the specific circumstances of each foundation. These best practices rest on the overarching principle common to all foundations: the board or governing body has a fiduciary obligation to prudently manage investment assets either directly if it has sufficient expertise, with the assistance of experts, or by delegating primary responsibility to a committee with sufficient experience and expertise.
The Telluride Foundation’s Board of Directors has adopted investment policies and follows the best practices and standards of the trillion-dollar foundation/nonprofit industry. PCT funds will be part of the Foundation’s pooled long-term investments, with a 7+ year investment horizon. The objective of the long-term pool is to return CPI + 5% annually. These investments are a mixture of stocks, bonds, and cash and cash equivalents. The Foundation generally invests in funds to lower risk and investment expense. Currently the Foundation uses PIMCO for its bond allocation, The Investment Fund for Foundations (TIFF) for its equity and equity like allocation, and local bank money market and CD for its cash and cash equivalents.
HOW WOULD ANY ADDITIONAL FUNDS RAISED BE DISTRIBUTED?
The Telluride Foundation and PCT will seek additional funding for the PCT in the form of grants and corporate donations. This additional portion of funds will be distributed proportionately five ways: to each of the three community trust funds proportionate to the amount raised by each community and a proportionate 1/5 share distributed for regional projects.