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                   Island Heights Yacht Club   Founded 1898

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We are excited to Celebrate
125 years of IHYC!

This is a time to look back and celebrate a major milestone and accomplishment for our Club.

It is also a time to look to the future to secure our Club for the generations of members who will
steer IHYC into the next 125 years.

Your gift will provide the means for IHYC to grow into the future, replace the use of our current line of credit,
and provide a vehicle for wealth development.

 

A gift of just $125 from each member will bring us

more than halfway to our 5-year goal!

 

Make a gift to the IHYC 125 Fund

If you wish to make your gift in the form of a check, please mail to
IHYC, P.O. Box 952, Island Heights, NJ 08732

IHYC is organized as a “Social or Recreational Club”, not a “Charity”.


125-Fund Definition Statement

The 125-Fund or “nest egg” is to be available as a reserve for use by the Board of Governors in consensus as a line of credit, or as collateral for additional funding, or in support of emergency funding not otherwise covered by other funds, or once those funds are exhausted.  Such usage shall be in alignment with the support of the Finance Committee. 

 

The 125-Fund shall NOT be used for any capital projects whatsoever. Monies can be borrowed from this account for operating expenses in the Annual Budget, but the monies must be returned to the 125-Fund within one year. Although no monies from the 125-Fund are to be sued for capital improvements, the interest may be so used if deemed appropriate.

 

The 125-Fund will be set up as an interest-bearing account within one year of its inception.  Seventy-five (75%) of the monies received will be placed in this interest-bearing account. The remaining twenty-five (25%) may remain in the 125-Fund Operating Account for the purpose of covering operating expenses for development of additional fund raising.  As this is a 5-year campaign all the monies must be held in the interest-bearing account by the five-year mark with the exception of any monies being used by the ways acceptable to the fund requirements.




Frequently Asked Questions about the 125-Fund at Island Heights Yacht Club

1. What kinds of things can the 125-Fund be used for?

The 125 Fund is a nest egg of savings: a special fund with the primary purpose of accumulating wealth for the future security of our club. This important fund will provide the means for IHYC to grow into the future, replace the use of our current line of credit, and provide a vehicle for wealth development.

2. Is the 125-Fund a Charitable Organization?

No, the 125-Fund is organized under the IHYC as a 501(c)(7) organization, designed to meet the needs of non-profit social or recreational clubs.

3. Can I donate to the Sailing Foundation of Barnegat Bay (SFBB) to be directed to the 125-Fund for IHYC?

No, The SFBB only provides funding for projects. Their funds cannot be provided without a request for a specific project fitting their requirements. The IHYC 125-Fund is a nest-egg fund with the primary purpose of accumulating wealth for the future security of our Club, not a specific project.

4. I like to donate to the SFBB with direction to give my gift to IHYC. Can I still do that?

Yes, the SFBB is a well-regarded charity with 501(c)(3) designation. IHYC continues to solicit grants for project-based opportunities from SFBB and they have been generous with our requests. Your tax deductible donations can be directed to IHYC projects.

5. Will the 125-Fund be co-mingled with the operating funds for the Yacht Club?

A separate bank account has been opened at TD Bank to hold the fund separately from the operating accounts at the IHYC. For the first 12 months, the funds are on deposit in the 125-Fund Operating Account. After the first 12 months, and for the 4 additional years of 125-Fund development, 75% of the fund must be deposited in an interesting bearing account and 25% of the fund may be deposited in the 125-Fund Operating Account which provides seed money for additional 125-Fund development.

6. Can the 125-Fund be used for Capital projects such as a pool or a new elevator?

No, the 125-Fund is a nest egg designed for wealth development and will also be available as a resource for borrowing when necessary to meet operating expense in our Annual Budget commitments or emergencies. Any borrowed funds must be returned to the 125-Fund within 12 months. Capital projects should be funded specifically for each project and / or with grants through funds donated to the SFBB for special projects pursuant to their funding requirements.

7. Who makes the decision to borrow money from the 125-Fund?

Consent among the Board of Governors (Bridge and Board) as well as consultation and agreement with the Finance Committee is required to release funds from the 125-Fund for use to cover seasonal gaps in the ability to meet operating expenses or an emergency. Currently these gaps are met with the limited use of the institutional line of credit currently in place. The 125-Fund is designed to replace the current line of credit.

If you have additional questions, please reach out to the Bridge and Board, or come to our regularly scheduled Board of Governors Meetings. This document will be updated from time to time to include FAQ’s brought to the attention of the Board of Governors on this topic.