Statement of Financial Policies
The financial policies are established by the Finance Committee, reviewed by the community Elder Board and approved by the Board of Directors. The purpose these policies are to provide guidelines for the proper handling of resources entrusted to this charity; and to promote public trust and accountability.
1) Fundraiser banquets are strictly prohibited.
2) KB Charitable Trust shall not participate in any public appeals for contributions such as mass mailings, pledge cards, etc.
3) 100% of all contributions received by the charity shall go directly towards the cost of approved projects. All administrative costs shall be paid from charity investment income or private contributions.
4) No public contributions are allowed to be used towards investment activities. All investments are to be planned and funded by the investment committee and approved by the Board of Directors. Any required funds needed for investment activities will be raised by designated contributions.
5) The Finance Committee shall oversee an annual review of the charities books by an independent certified public accountant. Annual financial reports summarizing all financial activities of each calendar year shall be prepared and submitted to the Board of Directors.
6) It is the desire of KB Charitable Trust that all supporters first support their local church and that all contributions made to KB Charitable Trust be above their normal tithes.
Financial Support Objectives
Since the financial policies established by KB Charitable Trust directly prohibit public solicitation for contributions, the charity has resolved to rely on annual supporters who join with us to help accomplish the goals and objectives of KB Charitable Trust. Our first stage objective would be to obtain 1,000 people within the community to give an annual contribution of $125. This objective would provide a $125,000 annual base budget for basic operations of the ministry. These annual sponsors will be obtained through personal one on one contacts by the various individuals involved within our ministry and various individuals who find out about our various projects and are desiring to help support our efforts. The preliminary administrative activities related to the annual supporter program have already begun.
Although 100% of all the public contributions received by KBCT will be used toward the various ministries and projects approved by the board of directors, an investment committee has been established to handle the real estate currently owned by KBCT. The investments currently consist of rental investment properties, sum stock, and a few vacant lots. The income producing real estate generates a positive cash flow and has a debt retirement plan scheduled to be completely paid off over the next seven years with interest rates floating at prime. Once paid off these investment properties will generate an additional $20,000 per year in additional proceeds to be used towards the various projects and ministries of KB Charitable Trust.
The board of directors has authorized the president to formulate and proceed with an investment debt retirement program wherein the board might be able to achieve having these properties paid off sooner by obtaining designated contributions that would go directly towards the retirement of the existing mortgages on these properties. Through personal contacts and one on one meetings the board will seek to raise 100 contributions of $1,000 each towards the retirement of the existing debt. The $100,000 investment in currently owned rental properties will generate $20,000 per year in additional operating funds and at the end of five years the charity would have already recouped 100% of this investment. The beauty of this investment objective is that in addition to the $20,000 cash flow generated each year, the $100,000 investment is also still owned by KBCT as equity in real estate, which will continue to grow as property values increase.
The graphs below are updated periodically for the purpose of graphing the progress of our annual supporter program and the investment objective. For further questions related to the annual programs, please call the KB Charitable Trust office at 864-233-7626 or click the e-mail button below to automatically e-mail your comments and questions to the office.
As stated in the support objectives above, KB Charitable Trust seeks to find 1,000 members of the community who would be willing to become annual supporters of the charity by providing $125 annual contributions. Once achieved (which may take 2-5 years) this will provide a $125,000 base budget to accomplish the various ministry objectives. The following spreadsheet was prepared in order to visually demonstrate how monies will be allocated to the various projects as we obtain different percentages of the base-operating budget. The related footnotes are provided to give additional information and justification for the priorities given to the various ministry objectives and how the monies will be allocated in the budget as we work toward obtaining 100% of the base-operating budget.