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On February 22, 2017, the Library Board—responding to recent donations and member interest—approved creation of a new Cannon Beach Library Endowment to generate investment income to help defray future costs of building maintenance, book purchases, and other necessary library expenses. Several of the ways listed below to contribute to the Cannon Beach Library Endowment—particularly making a Qualified Charitable Distribution from a traditional IRA—may allow donors to reduce their tax liabilities substantially while maximizing their contributions to the future financial health of the Cannon Beach Library. Some examples include:
Generating a long-term rate of return that permits growth in the Endowment assets as well as funding an annual payout rate of about 4% constitutes the primary objective of the Endowment investment portfolio. The Cannon Beach Library Endowment raises philanthropic gifts, invests them responsibly, and stewards them in accordance with donors’ wishes. Contributions to the Endowment will take the form of cash, securities, and life insurance; the Library Board must approve such gifts as land, buildings, art, etc. The Endowment portfolio will consist of common stock and such fixed income securities as bonds and money market securities. Common stock purchases are limited to marketable securities quoted on major exchanges or in over-the-counter markets. Endowment principal will only be used should the Library face closure or no other resources exist to pay the Library’s ongoing expenses; such use requires approval by two-thirds of the Library Board. An investment committee appointed by the Library Board, will manage the Endowment and report quarterly to the Board, which has ultimate responsibility for the Endowment.
Library services depend on contributions from community residents, businesses, visitors, and patrons, as well as grants from family foundations and the City of Cannon Beach, but especially on the valuable time of dedicated volunteers. Presently, an Annual Appeal Letter, the sale of donated books, membership and patron fees, a city grant, a popular July 4th Book Sale, a Crafts & Bake Sale, and a Quilt Drawing cover yearly expenses. These fundraising efforts, however, do not provide a secure rainy-day fund. The Library Board created this new Endowment to address this need to ensure the financial health of the Library and its programs, services, and facilities for the next 90 years and beyond. The Endowment offers homeowners, businesses, visitors, charitable foundations, corporations, and other friends of the Cannon Beach Library additional tax-deductible ways to impact the future of the Library and the community it serves.
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