This year, for the first time since 2016, the Jewish Foundation of Manitoba is in a position to re-capitalize residual income. This means the JFM has permanently added $9 million to its endowed asset base. At JFM’s current distribution rate of 4.2%, this means that about $378,000 of new money will be directly injected into the community.
This is the largest capitalization in JFM’s history.
This incremental income means increased opportunities for JFM’s beneficiary organizations to expand their programming, update their facilities, and increase support to their constituents.
For capitalization to occur, JFM must first meet all its distribution commitments. In addition, the Foundation’s Reserve Fund must be at its maximum level as mandated by Board policy. When these two requirements are met and residual income remains, that income is capitalized to the endowment funds.
“This capitalization impacts everyone involved with the Foundation,” says John Diamond, Chief Executive Officer. “The money goes back to donors’ funds, resulting in fund growth for each fund. No matter the size of your fund, it will benefit, and the result is more support provided to our community through every avenue the JFM provides. Every fund will help; your fund will help.”
Our success as a foundation results from appropriate & prudent stewardship of JFM’s assets through the oversight of a skilled Investment Committee and the generosity and passion of donors and fundholders like you.
“News like this is always welcome and means great things for the community,” says Diamond. “When it comes down to it, when our asset base grows, so do our distributions, which accelerates and expands the impact we can provide.”
The Foundation experienced a good year in 2021 from a financial perspective. The investment portfolio returned 12.49% (net of fees), and donors contributed $3.3 million, including $1.2 million, from various organizations allocating to their respective organizational endowments.
“We always like to reiterate that growth is not simply for growth’s sake. The growth represents a healthy community asset serving its community,” says Ian Barnes, Chief Financial Officer. “Over the last ten years, granting has increased by 94.8%. Since the Foundation was established in 1964, $83.9 million has been distributed to vital organizations in the Jewish community and throughout our province. Capitalizations like the one taking place this year significantly impact growth, only increasing these distributions and strengthening our community.”
“We are so pleased with our ability to top up each fund at the JFM, but we also know that with the number of different funds we have here, there are bound to be questions as they relate to individuals,” says Diamond. “If you want to review your fund individually, please feel free to call us, and we are happy to walk through it with you.”