The objective of Donate a Dollar a Week Incorporated is to collect monies from donors (the public) and re-distribute them to qualifying selected charities on a monthly basis.
The current distribution objective is to distribute at least 80% of collected donations each month to the selected qualifying charities.
The surplus amount (20%) is accumulated for the purpose of holding a reserve which is intended to be used for unexpected donations such as those that arise due to events such as natural disasters or the aftermath of a large scale mass suffering event.
In addition to Donation distribution related accounts, Donate a Dollar a Week Inc. maintains separate bank accounts for the receipt of sponsorship funds. Sponsorship funds are used to meet operating expenses as they arise and become due during the course of each year.
If and/or when sponsorship funds held exceed operating expenses payable in the immediate future (60 days) by the amount greater than $1,000.00 for a period of 6 months, the relevant Board Committee will determine an investment strategy for these funds beyond holding them in the relevant transaction account.
On the basis of these objectives, Donate a Dollar a Week Inc. does not in the immediate term have plans to use any of the monies received from donations for medium to long term investments in semi liquid assets (e.g. property purchases) nor any investment which does not have guaranteed capital returns (e.g. shares in companies or loans to persons or entities of any sort).
Therefore, the investment strategy in the immediate term (unless and until otherwise amended and approved in accordance with the decision making requirements of the Board of Directors) will be to maintain all funds in interest bearing, at-call accounts in Australian Authorised Deposit taking Institutions (ADI’s), most typically, an Australian bank.
In this regard, the approach will be broadly as follows: -
- Monthly donations will be received to the general transaction account and from that account the payments to the selected charity or charities will be paid.
- The residual of donations not immediately paid to selected charities will remain in the transaction account until such time as the accumulated residual balance is greater than one thousand dollars ($5,000.00).
- When the residual balance of the transaction account exceeds $5,000.00 the majority of the residual (excluding a sufficient small amount to maintain the transaction account in open status, will be transferred to an at call interest bearing account (of the nature of those sometimes referred to as a Cash Management style or high interest bearing accounts).
- These funds will bear interest until such time as they are to be used for the purposes stated previously, when any agreed amounts will be transferred back to the transaction account.
The Directors acknowledge that different ADIs offer different rates from time to time, often for the purposes of attracting customers, and therefore the rate being earned by the current interest bearing account may not be the highest rate available on the market.
As Donate a Dollar a Week Inc. operates on a volunteer administrative support basis there is no resourcing assigned to scan the market and/or establish bank accounts across a multiple institutions and therefore to that end, the Board will reassess the need or tangible benefit opportunity to amend the type of account or accounts and the ADI used by Donate a Dollar a Week Inc. and determine the worth of changing to an alternate ADI, from time to time if they deem it necessary.
This investment strategy will be reviewed by the relevant Board Committee defined intervals, amended as and if required or confirmed as suitable for the next period.
Decisions made by the relevant Board Committee will be advised to the full Board at the Board meeting following the Board Committee meeting.
Chair - Trust Management Committee
Board Approved Ver. 1 - 16/6/2018
Ver. 2 – 22/6/2019