Submitted by admin on Tue, 08/07/2018 - 11:48 AM
Report Date
Committee Name

FINANCE:

 

Lois guided the committee through the fiscal year-end financial accounting (July 1, 2017-June 30, 2018): Total expenses- $230,463.

Total income- $203,596 exclusive of gifts.

Gifts- $211,628.

Net unrealized investment gains- $31,485, not included in Income.

Operating deficit- $26,867. The deficit was operationally taken from the year’s gifts. 

 

Accounts status

Bank (June 30):  $186,860.97

Broker (June 30):

Investment Account = $167,474.48 (versus $162,735.42 on June 30, 2017, FY gain of $4,739.06)

Endowment Account = $229,075.02 (versus $201,287.76 on June 30, 2017; FY gain of $26,745.69)

Total invested funds = $396,549.50 (versus $364,023.18 on June 30, 2017; FY gain of $31,484.71)

 

There was spirited discussion of how to handle our gifts, which have been held in our checking account as cash pending investment decisions. As in earlier meetings, there were several options discussed, including specific income-bearing stocks, money market fund, tiered CDs, and index funds. With stock and bond market conditions uncertain due to federal actions (e.g., tariffs), investing in “cash” accounts like money markets or CDs seemed most reasonable now even if yield is below cost of living increases. However, It was decided to reaffirm our May decision to make a “bid package” for distribution to select brokers requesting their recommendations (Chuck C. to prepare). The package would include a summary of our current investments and the amount we are considering investing. Based on the fiscal year-end accounting, we decided to capture gains in the Endowment Account by withdrawing $26,000 to roughly cover our FY 2017-2018 deficit, while investing most of the gifts ($203,128.41 probably rounded to $200,000). Funds for the new season’s regularly sponsored chamber concerts (Carlson-$4,000 & Feldman-$4,500) would be retained in the bank account).

 

The committee’s Financial Strategic Plan (prepared in April 2016), and the committee’s Annual Calendar of activities (last revised in September 2017) were reviewed. Comments were requested for the next meeting.

 

We reviewed the 2018-2019 budget in light of the deficit in the fiscal year just ended. Lois will look at actual income and expenses in the past year and suggest where adjustments might be made.

 

 

FUNDRAISING

 

Fundraising events for the year were discussed, with an eye to making up the year’s fundraising calendar. As decided earlier, dinners at concerts were discouraged. A fall event in September or October (Oktoberfest theme?) was desired, assuming Willow Ridge will host us again. Although it had been previously agreed that we would not do Rock to Bach this year, there was sentiment to do it in the February time frame in order to establish it as an annual community event. A spring event at the Arboretum’s new facility was favored, assuming we did something simple ourselves rather than having a musical event with the Arboretum Society (as once proposed). We will need to reserve the building early.

 

Program ads are coming in slowly. We need 4-5 new ones to make up for those we already know will not renew. The United Arts Fund Drive is underway. Lois is coordinating both again this year and needs board help NOW. ORCMA donors are encouraged to give to the UAFD with designation to ORCMA.

 

A peace-related event was briefly discussed to coincide with the peace theme of the March concert. Not in our committee’s responsibility, but might be a fundraising opportunity. Wine tasting?

 

MISCELLANEOUS

 

The committee agreed to start subsequent meetings at 3:00 on the Wednesday before the board meeting rather than 1:00.

 

The meeting adjourned about 3:00.

 

Chuck Coutant, Chair

Action items are underlined.


Letter sent to financial advisors

July 31, 2018

 

Jeremy Doll

Merrill Edge Financial Solutions

795 Main Street W

Oak Ridge, TN 37830

 

Dear Mr. Doll:

 

The Oak Ridge Civic Music Association (ORCMA), a non-profit 501(c)(3) organization, requests your advice for investing its Endowment.

 

ORCMA is composed of the professional Oak Ridge Symphony Orchestra (four concerts per year), the volunteer Oak Ridge Chorus (performing with the symphony and alone, four concerts per year), the Chamber Concert series of invited professional groups (four concerts per year), and the free Coffee Concerts by local musicians (generally four concerts per year). The Orchestra presents one free Family Concert each year as educational outreach. Our upcoming season will be our 74th. A season brochure of our concerts will be sent to you separately.

 

ORCMA has an annual operating budget of about $225,000. This is made up of annual subscriptions, box office receipts, concert sponsorship, special donations, and gains in invested endowment funds. We have recently depended on withdrawing about $30,000 each year from our invested funds (circa 13% of our budget) to balance operating expenses.

 

At the June 30, 2018 end of our 2017-2018 fiscal year we have $396,550 invested. We have an additional $200,000 from recent bequests to be invested, now held in cash in our checking account. The present investments and their June 30 market values are:

                  Vanguard Index Fund (S&P 500 ETF) - $229,075

                  First Eagle Global Class A Mutual Fund - $44,043

                  James Balanced: Golden Rainbow Fund - $35,037

                  Mainstay Income Builder Fund Class 1 - $29,730

                  Oakmark Equity & Income Investor Cl - $40,849

                  Loomis Sayles Strategic Inc Cl A (fixed income fund) - $17,061

 

Our investment goal has been growth & income with preservation of our capital, including a mix of equities and conservative mutual funds. The annual goal for all invested funds would be a yield of 6% or better. The most significant growth in the past fiscal year has been in the S&P index fund (13%). The mutual funds in aggregate have grown 3% in the past fiscal year, and have retained nearly consistent valuation since 2015 despite withdrawals.

 

If you are interested in appraising our current holdings (including their fees) and providing a recommendation for investing the newly obtained funds, (or want more information about the request) please reply by August 30 to:

                  Charles C. Coutant, Treasurer                  email: ccoutant3@comcast.net

                  c/o ORCMA                                                                    Phone: 865-483-5976

                  320 Robertsville Rd., Suite 1

                  Oak Ridge, TN 37830

 

We thank those who have supported live music in Oak Ridge and look forward to your response.

 

Sincerely,

 

Charles C. Coutant, Treasurer

For the Finance & Fundraising Committee

of the ORCMA Board of Directors

 

 

 

 

Recipients:

 

Roger R. Williams                                                                         sent letter 7/31/18

Ameriprise Financial Services

667 Emory Valley Road, Suite B

Oak Ridge, TN 37830-7765

 

Mark King                                                                                       sent letter 7/31/18

Coulter & Justice Wealth Advisors

575 Oak Ridge Turnpike, Ste 203

Oak Ridge, TN 37830

 

Scott Parkhurst                                                                             visited 7/19/18

Cumberland Wealth Management

1143 Oak Ridge Turnpike, Ste 214

Oak Ridge, TN 37830

 

Jim Charles                                                                                     sent letter 7/26/18

Edward Jones

106 Administration Road

Oak Ridge, TN 37830

 

Jeremy Doll                                                                                     sent letter 7/31/18

Merrill Edge Financial Solutions

795 Main Street W

Oak Ridge, TN 37830

 

Jack W. Hill                                                                                      sent letter 7/31/18

Retirement Planning Group

661-B Emory Valley Road

Oak Ridge, TN 37830

 

Stan Jacobs                                                                                     sent letter 7/31/18

UBS Financial Services

107-B W. Tennessee Avenue

Oak Ridge, TN 37830