Providence Art Club Mortgage Retirement Fund
Looking ahead to the future and with the Club’s financial sustainability a priority, in late 2019, the Board of Managers approved the creation of a separate fund to accept donations targeted for the retirement of the Club’s mortgage balance. When the loan comes due in May 2028 there will be a substantial $990,000 principal balance remaining. Rather than incur additional expenses associated with refinancing this balance and paying more interest over another ten years, this fund will be used to retire the debt in full. The Board feels that this financially conservative approach will allow the Club to be more flexible when making future financial decisions. The monies held in this fund are kept separate and apart from other club funds and are managed with a strategy aimed at preserving principal.
Description
Looking ahead to the future and with the Club’s financial sustainability a priority, in late 2019, the Board of Managers approved the creation of a separate fund to accept donations targeted for the retirement of the Club’s mortgage balance. When the loan comes due in May 2028 there will be a substantial $990,000 principal balance remaining. Rather than incur additional expenses associated with refinancing this balance and paying more interest over another ten years, this fund will be used to retire the debt in full. The Board feels that this financially conservative approach will allow the Club to be more flexible when making future financial decisions. The monies held in this fund are kept separate and apart from other club funds and are managed with a strategy aimed at preserving principal.