The Ainsley Faith Foundation believes in being accountable and transparent in its operations. As such, the following guidelines have been adopted to ensure stakeholder confidence in the ethical operation of the Foundation.
Financial Health Goals
- Program and Administrative Expense Percentages – We strive to maximize the use of our resources toward our programs. After our initial startup period, we will strive to maintain 85% of our budget dedicated to our programs and 15% to administrative costs. These percentages will be monitored and reported to the Board of Directors at minimum quarterly.
- Fundraising Expense Percentage – To maintain a healthy financial status, we strive to keep fundraising costs below 10% of our functional budget. Note: Excess income and expenses from community events held by the foundation are not considered part of fundraising, rather as part of our program budget.
- Financial Capacity and Program Growth – We believe a healthy organization is a growing organization. After our initial startup and growth period, our goal is to maintain a healthy growth rate between 3-7%.
- Working Capital Management – Effective cash management is critical to the long-term success and viability of the Ainsley Faith Foundation. As we exit our startup period and growth period, our goal is to maintain 6-12 months of operating capital available at all times to ensure continuity of programs and stability of the organization.
- Liability Management – While there are times liabilities are advantageous for a nonprofit, we believe in minimizing the amount of debt the Foundation acquires, preferring to self-fund through an increase in revenue. Our goal is to maintain less than a 10% liabilities to assets ratio to be used judiciously with the approval of the Board of Directors.
Accounting and Transparency Information and Guidelines
- We maintain a majority of independent voting members of the board of directors
- Material diversion of assets are not generally accepted policy. If one occurs, a full explanation will always be included in Foundation records and available for review by stakeholders
- Financial statements will be reviewed by an accountant who is selected and overseen by an internal committee
- Loans to officers or other interested parties are not permitted
- Loans from officers or other interested parties are permitted; however, only at a rate less than currently available from local institutions in Muscatine, Iowa.
- Conflict of Interest Policy is maintained in the by-laws of the Ainsley Faith Foundation and available for review upon request.
- Whistleblower Protection Policy is in place to encourage and enable parties to raise serious concerns through an internal procedure.
- Records will be retained and destroyed per the Document Retention and Destruction Policy
- Executive Director compensation will be reported properly and completely every year on IRS form 990
- Executive Director compensation will be reviewed and updated annually by the Executive Committee of the Board of Directors.
- Members of the Board of Directors are volunteers and not compensated for their participation with the Foundation.
We believe in delivering tangible results from our efforts and resources. Each program will identify KPIs (Key Performance Indicators) to track, monitor and evaluate. This information will be made available at least annually or on request of a stakeholder.