Endowment Policy

ENDOWMENT POLICY

AAC

a Colorado 501(c)(3) nonprofit corporation

P.O. Box 873 Silver Cliff, CO 81252
Call for more information - (719)783-3770
Email: animaladvocates@animaladvocatescolorado.com

Member Colorado Federation of Animal Welfare Agencies and American Humane Association

Endowment Fund Purpose:

Animal Advocates of Colorado, Inc. (AACI) hereby establishes a
permanent endowment fund whose goal is to grow and provide a
continuous flow of income to perpetuate its existence and furthering its
goals. AACI recognizes that the more the endowment grows, the
greater impact the organization can have on fulfilling its mission for the
future. The fund will help ensure that basic services are always
available to meet the needs of pets and owners in our community, as
well as to fund potential new ventures which may be needed.

AACI is establishing this permanent fund because it believes in
building for the future and serving the community for many years to
come. Establishment of an endowment that will exist in perpetuity
means that AACI considers its future needs to be as important as
today's needs. Because the endowment will not be used for short term
operating costs, we believe it may be of special interest to donors who
wish to extend the life of their gift and provide value for future
generations.

Current donations and donations for special projects will be used
to achieve our mission and provide for current operations. We
recognize that unforeseen costs such as veterinary costs for
catastrophic epidemics, emergency aid for natural disasters and capital
expenditures could arise in the future. Availability of income from an
endowment fund would supplement ongoing fundraising efforts to meet
those needs.

DELEGATION OF AUTHORITY:

To assure future needs are met an investment committee will
direct a team of professional investment advisors to maximize the
fund's total return. The Board of Directors will restrict the maximum
percentage it will take out of the fund each year, preferably leaving the
principal and remaining return to be reinvested. Since the goal is to
increase the availability of income for the future via long term growth,
interest, divididends or capital gains beyond the annually established
percentage available for use may be reinvested in the principal of the
endowment. If funds are not needed for current short term operations,
or approved capital expenditures, the endowment fund as a whole will
remain untouched.

The investment committee will report investment performance
results to the Board of Directors on a quarterly basis, communicating
any major changes in economic outlook, investment strategy or
portfolio management.

SPENDING POLICY AND PRINCIPLES:

The Endowment Spending Policy is based on investment
principles which are established to achieve long-term growth of the
principal. They include diversification to minimize risk of large losses
and reasonable efforts to control risk, resulting in growth of the
aggregrate portfolio value at least at the rate of inflation.