September 21, 2021
Kansas 4-H Foundation Local Unit Investment Program
The Kansas 4-H Foundation has long had a program to benefit local 4-H programs in which it holds local funds in the Kansas 4-H Foundation investment pool. Throughout the years, that program has evolved and grown, and I’m proud that a number of local units and local 4-H foundations have chosen to use this program to their advantage. Currently, our organization holds $1.6 million in local funds. I want to share a bit about the program here and provide a heads up about changes coming soon.
The Local Unit Investment Program is available to two entities: local units (which could encompass a district governing board, a county extension board, or a county 4-H council) or a local unit 4-H foundation that has its own 501(c)(3) status and is in good standing with the State of Kansas. In the past, there were other “sub-units” like scholarship committees that were accepted in the program as well.
When a local unit investment fund is established, the Foundation takes responsibility for holding and investing those funds. Those funds are not available to the Kansas 4-H Foundation for any purpose other than as directed by the fund agreement that the governing body signs when establishing the fund. Those dollars, while held by us, remain the property of and for the benefit of the local unit. The Foundation does charge a small fee (currently 1% annualized) to administer these funds.
The investment policy of the Kansas 4-H Foundation is established by the Investment Advisory Committee and approved by the Board of Trustees. Funds invested with the Kansas 4-H Foundation are pooled with our other invested assets as part of the $10 million in funds at our investment firm, The Trust Company, and earn returns based on market activities. As an example, funds that have been invested over the last five years have earned an average return of 10.1% each year. That means a local unit that invested $25,000 in the program five years ago would have approximately $40,000 today (not counting any disbursements).
Any local unit that would like more information about how the Local Unit Investment Program works and how to establish a fund is encouraged to reach out to Kansas 4-H Foundation CFO, Justin Law, by calling our office at 785-775-0123 or by email at jlaw@kansas4hfoundation.org.
For units with existing funds invested with the Kansas 4-H Foundation, look for a communication soon from Justin Law. As the program has grown, administering each individual fund separately with its own unique requirements has become challenging. We will soon implement policy changes to modernize and streamline the administration of these funds. These changes will more specifically define the legal entity for whom the funds are held, personnel who are authorized to request fund disbursements, standardize fees, and will refine the process by which funds will be disbursed.
Finally, our Development Team is ready and willing to help any of you work with potential donors who wish to make large gifts or leave a part of their estate to local units. In recent years, estate gifts exceeding six figures have been received by multiple local units. We can provide support to your local unit to make sure that process is handled professionally and properly and that those funds are utilized as provided by the donor. We will work alongside you collaboratively in that process. Please reach out to Mindy Weixelman at 785-775-0123 or mweixelman@kansas4hfoundation.org if you have questions about working with a current or future donor.
We believe local funding is a key to a strong local 4-H program and look forward to continuing to support local 4-H through this investment program.