Building a Firm Foundation  

   

The Junior League of Omaha Foundation was organized and is operated exclusively for the benefit of supporting the mission of the Junior League of Omaha. The general purpose and ongoing goal of the Foundation is to accumulate enough properly invested funding such that the income generated from the investments will provide a perpetual source of operating funds to support the Junior League of Omaha. While this is its main goal, the reasons for the founding of the Foundation eight years ago are much more far-reaching.  

   

Currently, the Junior League of Omaha is restricted in the way it may hold funds.  The JLO's by-laws are written to take a very conservative approach to holding funds so as not to adversely affect the League's 501c3 status and as such, only hold funds in the form of cash or certificates of deposit.  While these are "safe" they provide for the least benefit in terms of return on money.  The JLO Foundation, however, is a "supporting organization" and as such has an investment policy that allows money to be invested in vehicles with the possibility for far greater return.  Because of this distinction, it is financially prudent to place League funds in excel of operating needs, in the hands of the Foundation.  In other words, money received by the Foundation from the Junior League can be invested, along with all other contributions, to produce the best possible earnings.    

   

In addition to giving the Junior League the opportunity to earn a greater return on its money, the Foundation is an important source for protection of League funds.  Because the League and the Foundation are separate corporations, the liabilities of the League do not pass to the Foundation and vice versa.  If the League were the target of a law suit or be subject to a loss of money from any type of catastrophic situation, funds held by the Foundation for the benefit of the League in most cases could not be accessed.  As a membership organization, the chance of such an event are slim however, the Junior League operates a retail establishment, My Closet, in which such liabilities can be frequent.    

   

Finally, the Foundation exists to support the Junior League in years when unrecoverable operating losses occur in the League's budget.  While this has not been necessary since the Foundation's inception, it is a wonderful safety net to depend upon.