Monthly Archives: January 2015

2015, January 28 – Minutes

PENINSULA ENDOWMENT

Minutes of the BOARD OF TRUSTEES

January 28, 2015

The meeting of the Peninsula Endowment Board of Trustees was held at the offices of Brown Adams, 2600 El Camino Real, Palo Alto on January 28, 2015. The meeting was called to order by President Kohler at 10:30 AM.

Present: Mmes. Dunham, Wilson; Messrs. Fowler, Kohler, and Margulies.

Treasurer’s Report. Marcus Lerman and CJ Dennis from Vanguard attended the meeting. Marcus listed plans going forward, what’s new from the Peninsula Endowment and the shift to an institutional account as topics for discussion. CJ is the Vanguard analyst assigned to the Peninsula Endowment account as a result of the change to an institutional account.

CJ indicated that he would be glad to do any further analysis requested by trustees.

CJ reviewed the report distributed. Short term outlook for the U.S. markets is satisfactory with issues in Europe and on the Pacific Rim. International investing is still important to maintain asset diversification.

Inflation projection is 1.9% with U.S. growth expected to be 2.5-3%.

With a 60% equity/40% bond portfolio the historical return has been 7-8%. The projected 10 year future growth rate for such a portfolio is around 6% giving a real return of 4%.

For the quarter the return was 2.03% with a return of 6.51% year to date. The benchmark was at 7.29%. Bond performance was 5.86%. Fees were at .46%.

It was noted that once the switch to the institutional account is complete, all reports will be available online. In addition, all authorized individuals will need to complete the process to gain access to the new site.

Marcus indicated that it would be possible to schedule a quarterly phone review around the 20th of the month, following the end of each quarter.

Minutes. Minutes from the October 8, 2014 meeting were accepted as presented.

Learning Ally Update. Fred and Greg attended the open house at the new studio in Menlo Park. The studio has four recording booths. Learning Ally is increasing their presence via webinars.

Review of Meeting with Silicon Valley Community Foundation. Fred, Gail and Greg met with representatives of Silicon Valley Community Foundation. The purpose of the meeting was to discuss customized philanthropy services with service-based pricing. The people that we met with were more focused on donor advised funds. We are expecting to get a proposal back with more detail on customized services and costs.

Review Chart of Possible Structure for the Future. Fred distributed a chart comparing a public charity to a private foundation. As a public charity the organization must be associated with a qualified nonprofit. As a private foundation or donor advised fund, donations can be made to any nonprofit. The requirement of a 3.5% donation to the associated qualified nonprofit ends this fiscal year. For a donor advised fund, the sponsoring organization owns the assets and advisors can recommend grants. For a private foundation, the board maintains control of the assets.

There was some discussion of the timing of any change in status that would be made. The conclusion was that we should continue as a public charity for the current fiscal year and make any changes in the upcoming fiscal year.

A motion was adopted to make a donation to Learning Ally of $60,000 during this fiscal year. It was also agreed that Gail would pursue obtaining legal services on a pro bono basis, following up on the meeting last calendar year.

A motion was adopted to postpone the annual meeting to a time before the end of the fiscal year.

Adjournment. The meeting was adjourned at approximately 12:15 PM.

Respectfully submitted by:

Greg Fowler, Recording Secretary

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