Frequently Asked Questions
Q: Why does UC MMG have an Opportunity Fund endowment?
A: Well managed non-profits are conservatively run financially, do not run deficits, keep emergency operating funds on hand in case of shortfalls, carry no debt, and have endowment funds for insuring long term success. UC MMG has followed this path with the Opportunity Fund to further ensure our ability to respond to future challenges and opportunities as an organization.
Q: What is an endowment fund?
A: An endowment fund is a type of investment fund that is set up to receive gifts and donations from donors. What makes an endowment fund unique is that the organization overseeing the fund typically uses the interest earned from donations to finance its activities—the donations themselves never get spent.
Q: Why should members donate to the Opportunity Fund endowment?
A: We ask members to remember Master Gardeners in their annual giving plans. It is a way of giving back to the UC Master Gardeners of the future. The Opportunity Fund will help Master Gardeners address future challenges and opportunities.
Q: Is it mandatory for members to give to the Opportunity Fund?
A: No. It is completely voluntary. Members who choose to donate may elect to do so anonymously or to be named on the annual Opportunity Fund donor list. All donations, regardless of size, are deeply appreciated.
Q: Can the payouts from the fund be used for both programs and capital purposes?
A: Payouts may only be used for programs.
Q: Besides funding from gifts, can excess operating funds be transferred to the Opportunity Fund?
A: Yes; the fund increases when Marin Master Gardeners generate excess annual operating funds from plant sales, workshops and other careful stewardship.
Q: Can funds be accumulated and then used for larger cost projects?
A: No, the annual distributions are mandatory.
Q: If a revenue emergency occurs, how long will it take to access the funds?
A: The UC MMG Board of Directors, working with the UCCE Marin County Director, may request a payout of the principle in the case of failing revenues and other critical needs. In this case, the request is prepared and provided to UC ANR Vice President and UCOP Advancement Services for approval. The UC MMG Board of Directors may request funds once a year in March-April. This request will be reviewed and, if approved, the funds will be distributed by June 30 of the same year.
Q: How does the UC MMG Board of Directors decide how much money to transfer from the Fund for program support and for what purposes to draw down funds?
A: There is an annual payout to the UC MMG operating account of 4.2% of the fund’s balance. The UC MMG Board of Directors guides the use of the annual payout to support specific UC MMG programs based on the needs identified in a particular year. The exact program allocation is decided under the general direction of the UCCE Marin County Director in conjunction with the Co-Presidents.
Q: How is the draw down amount calculated?
A: The Opportunity Fund plan components include: 1) the investment amount, 2) the interest, or annual income from the investment based on the market rate of return, and 3) an annual payout amount of 4.2% of the principal balance. The principal balance used to calculate the payout rate is the average account balance from the last five years (framed as a 60-month rolling average).