Warren-Newport Public Library District Lake County, Illinois Board of Trustees Policy 2020 Expendable Trust Fund Adopted: February 14, 1995 Reviewed/Revised: January 12, 1999; April 10, 2003*; October 18, 2011; May 20, 2014; March 16, 2017; December 19, 2017; January 21, 2020; October 17, 2023 *Title changed from Endowment Fund to Expendable Trust Fund ARTICLE 1. STATEMENT OF PURPOSE The purpose of the Expendable Trust Fund of the Warren Newport Public Library District (WNPLD) is to provide financial support for WNPLD, thus enabling WNPLD to enhance services to patrons. ARTICLE 2. GOAL AND USE OF FUNDS Section 2.01 Goal The goal of the Expendable Trust Fund is to establish a fund that can be used to enhance the services provided through tax support. Section 2.02 Use of Funds The monies in the Expendable Trust Fund shall be used primarily for library materials, technology, programming, capital improvements, public information campaigns, and solicitation of additional contributions to the Expendable Trust Fund. Section 2.03 Transfer of Funds The Board of Trustees retains discretion for expenditure of unrestricted contributions to the Expendable Trust Fund, which may include transferring a percentage of those funds to the WNPLD Endowment Fund. This decision will be considered by the Board at the end of each budget year. ARTICLE 3. CONTRIBUTIONS AND GIFTS Section 3.01 Forms of Contributions and Gifts The Expandable Trust Fund can accept gifts and contributions in the form of cash, insurance proceeds, marketable securities, or real estate. Section 3.02 Marketable Securities and Real Estate A gift of marketable securities or real estate will be sold as quickly as is reasonably possible to avoid market fluctuations, and the proceeds added to the Expendable Trust Fund.  Section 3.03 Restricted and Unrestricted Gifts Gifts may be restricted to specific purposes. Absent specific instructions from the donor, all unrestricted contributions received by WNPLD will be placed in the Expendable Trust Fund. Unrestricted gifts and/or grants to the Expendable Trust Fund from individuals, foundations, or corporations are encouraged. Section 3.04 Deferred Gifts Deferred gifts may be in the following forms: • gifts by will made either through outright bequests or through bequests creating trusts with the income going to the beneficiary (beneficiaries) and the remainder to the Expendable Trust Fund; • life insurance gifts in the form of a new or existing life insurance policy designating the Expendable Trust Fund as the beneficiary and/or the owner of the policy; • life income gifts, which are a current transfer of cash and/or securities from which the donor retains the right to annual income. Section 3.05 Confidential Gifts At the request of the donor, the nature of the gift and/or the identity of the donor will remain confidential to the extent permitted under relevant local, state, and federal regulations. If no request for confidentiality is made, WNPLD may disclose the identity of its benefactors. Section 3.06 Acceptance and Naming The Expendable Trust Fund provides an avenue for accepting and organizing gifts and contributions received by WNPLD. Gifts may be retained in the name of a specific individual(s). ARTICLE 4. INVESTMENT AND EARNINGS Investment of the Expendable Trust Fund will be made in accordance with laws governing investment of public funds. Expendable Trust Fund earnings may include both interest income and dividends. Absent specific restrictions on the use of earnings, the Board of Trustees will determine appropriate uses for Expendable Trust Fund earnings. Specifically named funds and the general Expendable Trust Fund will be invested either separately or on a combined basis to take advantage of the best available investment options. ARTICLE 5. ACCOUNTING AND REPORTING The Board of Trustees approves expenditures from and restricted donations to the Expendable Trust Fund. Fund balances will be reported to the Board monthly. The Expendable Trust Fund will be included in the annual independent audit of WNPLD. The Expendable Trust fund will operate as an expendable trust fund under current auditing definitions and regulations. _________________________________________