biennial report of beth martin langford kappa delta sorority national ...

FINANCIAL
Kappa Delta Sorority remains a financially strong, sound nonprofit corporation. Both fiscal years
2009 and 2010 were positive and challenges in 2010 were overcome. The sorority accounts were
healthy and decisions made by the National Council, the Investment Advisory Committee and the
Headquarters staff were of sound business acumen and provided for ample growth in the sorority
holdings.
A Financial Advisory Committee was established in 2009, made up of Kappa Deltas with extensive
experience in finance and accounting to work with the National Vice President–Finance (NVP-F) to
strengthen the sorority’s financial position and to lend expertise in strategic financial decisions.
Investment Accounts
PNC remains the Sorority’s financial advisor for the investment portfolio. The sorority investment
portfolios rebound slowly and consistently from previous years. With marked improvement in the
US equity markets, the sorority’s portfolio also benefited with improved returns.
The investment Advisory Committee met quarterly via teleconference as well as in person during
Convention, June 2009. The IAC made minor changes to the investment policy statement
throughout the year based on recommendations from PNC financial management.
National Treasury
The sorority remains vigilant in its spending and investment strategies due to uncertain economic
and investment scenarios. The National Council will continue to use best practices and focus on
matching expenses to our revenue stream and to focus on a return on investment for money that is
spent. A plan has been put into place for future spending and capital spending.
Even in these economically challenged times, the sorority kept operating expenses below revenue,
excluding the interest, dividends and equity performance of the investment portfolios. The prudent
management by headquarters staff and careful planning of the National Council have played a part
in this successful bottom line for the sorority.
Chapter House Fund
The Chapter House Fund currently has $4.3 million in loans to chapters nationwide, a slight
increase, and $7 million in loan guarantees for chapters seeking local financing, which is a reduction
from fiscal year 2009. Interest paid on savings deposited with the chapter house fund was adjusted
from 3.25% in April 2010 to 1.25% and was further reduced in April 2011 to 0.83%. All new loans
with the chapter house fund will continue with an 8.75% interest rate (increased from 8% in April
2010), regardless of the purpose for the loan as the sprinkler incentive rate is no longer available. All
rates are reviewed annually at the Winter Council Meeting.
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