Gun violence, mental health issues and socioeconomic disparities are long-term problems, with consequences that often resonate for generations. Therefore, the solutions that we apply must not only have our children in mind but their children as well. This means building, investing in and networking with well-funded, well-managed interventions that provide accessible and reliable support to co-victims of all ages, and particularly for our youth. Children and young people are the future of our communities and the most vital component in our mission to break old cycles and create new ones.
That is why our financial plan is firmly rooted in the philosophy of intergenerational equity. We recognize the importance of responsible and equitable financial management to ensure that the foundation's resources remain sustainable and capable of creating a lasting, positive impact for generations to come. This financial plan outlines our strategies for achieving that goal and realizing our mission of breaking cycles of violence and poverty.
The Ashua-Highland Foundation's 3-phase financial plan can be summarized as follows:
1. Intergenerational Equity: This phase focuses on responsible and equitable financial practices to benefit both current and future generations. It emphasizes investments that align with sustainability and social responsibility principles, ensuring that financial decisions do not harm the well-being of future generations.
2. Endowment and Quasi-Endowment Investing: In this phase, the foundation manages its financial resources as endowments or quasi-endowments. Endowments are typically invested to provide long-term financial support for the foundation's mission, while quasi-endowments offer more flexibility for specific goals.
3. Nonprofit LLC: The foundation establishes a nonprofit Limited Liability Company (LLC) as a strategic financial tool. This allows for more efficient management of funds, flexibility in investment strategies, and potential benefits for tax purposes, all while aligning with our philanthropic mission.
These phases collectively represent a comprehensive approach to managing the foundation's finances, ensuring sustainability, and promoting our charitable objectives over the long term.
WHAT IS INTERGENERATIONAL EQUITY?
Intergenerational equity is a concept that promotes the idea that the burden of raising the standard of civilization is to be shared between generations. It emphasizes fairness and justice in the distribution of resources, benefits, and burdens across different generations. It promotes the idea that the needs and interests of present generations should be balanced with those of future generations, ensuring that current actions and policies do not compromise the well-being and opportunities of future generations. It is often discussed in the context of environmental sustainability and social policies to address issues such as climate change and economic inequality while considering the long-term impacts on future societies.
In terms of finance and investing, intergenerational equity means adopting responsible and sustainable investment practices that take into consideration the well-being of both current and future generations. Investors who adhere to intergenerational equity may prioritize investments in companies and projects that are environmentally sustainable, socially responsible, and well-governed. This approach aims to ensure that investment portfolios do not contribute to negative impacts on the environment, society, or corporate governance that could harm future generations.
In essence, intergenerational equity in investing seeks to align financial goals with ethical and sustainable considerations, promoting investments that ensure an organization's potential for long-term positive impact.
Here are some of the core principles of intergenerational Equity:
SUSTAINABLE INVESTING
We commit to responsible and sustainable investing practices that prioritize long-term returns and environmental, social, and governance (ESG) criteria. This approach ensures that the financial assets of the foundation continue to grow while contributing to the well-being of future generations.
DIVERSIFICATION
A well-diversified investment portfolio is crucial for managing risk and ensuring that the foundation can provide consistent support to its beneficiaries over the years. Diversification across various asset classes and geographies minimizes financial volatility.
TRANSPARENCY AND ACCOUNTABILITY
Upholding transparency and accountability in all financial matters is paramount. We maintain clear records and share our financial performance openly with stakeholders, including beneficiaries and donors.
RISK MANAGEMENT
Effective risk management is essential to protect the foundation's assets and resources. We engage in proactive risk assessments and develop mitigation strategies to safeguard the interests of current and future beneficiaries.
PRUDENT SPENDING
We balance our spending to meet the immediate needs of our programs while preserving a significant portion of our assets for future generations. This approach ensures that the foundation remains a reliable source of support over time.
ENDOWMENT AND QUASI-ENDOWMENT INVESTING
Maintaining operations primarily through a combination of endowment and quasi-endowment investing is a strategic financial approach that aligns with the Ashua-Highland Foundation's commitment to intergenerational equity. Here's an explanation of the plan:
1. Endowment and Quasi-Endowment Defined:
An endowment is a long-term investment fund established to generate income for a nonprofit organization, such as the Ashua-Highland Foundation. It's typically comprised of contributions that are permanently invested, and only a portion of the investment income is spent, while the principal is preserved. A quasi-endowment is a similar fund, but it may be established for a specific purpose and can have more flexibility in spending.
2. Preservation of Capital:
The primary objective of maintaining an endowment is to preserve the capital, ensuring that the foundation has a stable source of funding in perpetuity. By focusing on long-term financial sustainability, the foundation safeguards its ability to address its mission and goals for generations to come.
3. Steady Income Streams:
AHF will generate a steady stream of income from its investments, such as stocks, bonds, real estate, or other assets held within the endowment. This income provides a reliable source of funding for the foundation's operations, programs, and initiatives.
4. Strategic Allocation:
The foundation will strategically allocate its assets within the endowment to balance risk and return. Investments will be diversified across various asset classes and will include sustainable and impact investments to align with the foundation's mission while ensuring financial stability.
5. Preserving Purchasing Power:
The foundation aims to invest its endowment assets in a way that preserves the purchasing power of its funds over time, even after adjusting for inflation. This will ensure that the foundation can maintain or increase its support for beneficiaries and our communities.
6. Focus on Long-Term Sustainability:
A key principle of managing endowment and quasi-endowment funds is a focus on long-term sustainability. The foundation's investment strategies will prioritize a consistent income flow to fund current operations while safeguarding assets for future generations.
7. Income for Impact:
The income generated from endowment and quasi-endowment investments will be used to support the foundation's mission and initiatives, ie., victim services, violence prevention programs, community support, and other essential activities that have a positive social impact.
8. Balancing Spending and Growth:
The Foundation will carefully manage its spending from investment income to ensure that it sustains current operations while allowing the endowment to grow over time. This approach strikes a balance between supporting current needs and protecting the foundation's future.
9. Community Trust:
By maintaining operations primarily through endowment and quasi-endowment investing, the foundation will build trust within the community. Donors and stakeholders can be assured that their contributions have a lasting impact, and the foundation's financial stability ensures its ability to fulfill its mission over the long term.
10. Interconnected Goals:
The strategy of using endowment income to support current operations aligns with the foundation's mission of intergenerational equity. It reflects the belief that today's actions should contribute to the well-being of future generations, and this philosophy extends to the foundation's financial practices.
Our plan to maintain operations through a combination of endowment and quasi-endowment investing reflects its commitment to financial sustainability, intergenerational equity, and long-term impact. This approach ensures that our mission continues to flourish while preserving its capital for generations to come.
THE NONPROFIT LLC STRUCTURE
In the third phase of the Ashua-Highland Foundation's business plan, the foundation explores the use of a nonprofit Limited Liability Company (LLC) as its business structure. Notably, Tennessee is one of the few states in the United States where this unique nonprofit LLC structure is permitted.
The benefits of a nonprofit LLC include:
1. Enhanced Flexibility: Nonprofit LLCs provide more operational flexibility compared to traditional nonprofit structures. They allow the foundation to engage in a wider range of activities, such as investments, joint ventures, and income-generating projects, without jeopardizing its nonprofit status. This flexibility can be invaluable for pursuing diverse revenue-generating opportunities.
2. Limited Liability: Like traditional LLCs, nonprofit LLCs offer limited liability protection to their members. This means that the personal assets of the foundation's members are generally shielded from the business's liabilities. This can help safeguard the foundation's financial stability.
3. Asset Protection: The nonprofit LLC structure can help protect the foundation's assets and maintain a clear separation between the business operations and personal finances of its members. This separation is crucial for preserving the foundation's charitable mission and financial integrity.
4. Long-Term Sustainability: By utilizing a nonprofit LLC, the Ashua-Highland Foundation can potentially secure additional sources of income. This income generation can contribute to the foundation's long-term financial sustainability, supporting its charitable goals and ensuring that its mission endures over generations.
The Nonprofit LLC structure, especially in Tennessee, offers the Ashua-Highland Foundation the advantages of flexibility, limited liability, asset protection, and the potential for increased income generation. These benefits align with the foundation's mission and goals, helping it better serve the community and maintain a focus on long-term financial sustainability.
SUPPORT OUR MISSION
The Ashua-Highland Foundation's financial plan is a profound and visionary commitment to sustainable impact, and we invite you to become a part of this legacy. By contributing to this fund, you ensure that our mission to bring an end to the violence that has plagued our communities for far too long is effective. And your support will provide the resources and opportunities necessary to make our vision a reality.
We are currently working to raise an initial $10,000 endowment, which we aim to grow through responsible investments and income-generating ventures. We ask that you would consider a donation of any amount to move us closer to our goal.
We hope that you recognize the significance of community engagement. Your faith and trust are the lifeblood of our endeavor, and we encourage you to actively participate in our mission. Your support, whether through donations, volunteering, or sharing our vision, is instrumental in shaping a brighter and more equitable future, where poverty and gun violence are no longer a prevailing reality.
Click the button below and join us in fostering positive change, ensuring that our foundation's impact extends across generations, and together, we can make a meaningful difference in the lives of those we serve. Thank you for being a part of our journey.