Investment Policy (v0.2 DRAFT)

First-pass structural draft (v0.2) by Claude. Supersedes v0.1 placeholder. NOT effective. Markers: [CONFIRM], [TERM], [COUNSEL TO DRAFT].

Applies to all financial assets held by Xerish Storehouse — funds awaiting disbursement as Grants, operating reserves, and the unrestricted grant-making pool. Purpose: preserve principal, maintain daily liquidity for weekly Grant batches, and avoid investment risks inappropriate for short-duration charitable balances.

In priority order: (1) capital preservation — no loss of nominal principal; (2) liquidity — sufficient cash to fund all approved Grant batches on schedule; (3) modest yield — only after the above are satisfied, capture short-duration risk-free yield to defray administrative costs.

Storehouse funds may be invested only in:

• Direct obligations of the U.S. Treasury (T-bills, short-duration T-notes).
• Money market funds rated [CONFIRM] AAA / Aaa or government-only.
• FDIC-insured demand-deposit and savings accounts, subject to the [CONFIRM] $250,000 insurance limit per institution per category.
• Certificates of deposit at FDIC-insured institutions within the same limit.
• [COUNSEL TO DRAFT] any other instrument explicitly approved by the Board in writing.

Storehouse funds shall NOT be invested in: public or private equities, corporate bonds (other than as specifically approved under §3), derivatives or options, commodities, real estate, hedge funds or private-equity funds, cryptocurrencies or digital assets, structured products, foreign-currency speculation, or any leveraged instrument.

At least [CONFIRM] two weeks of projected Grant disbursements shall be held in immediately available cash or overnight equivalents. The Sponsor shall monitor projected disbursement velocity and adjust the laddering of T-bill maturities accordingly.

The weighted-average maturity of the Storehouse investment portfolio shall not exceed [CONFIRM] 90 days, and no single instrument shall mature later than [CONFIRM] 365 days from acquisition.

All non-Treasury, non-FDIC instruments must carry the highest available short-term rating from at least one nationally recognized rating agency (e.g., A-1+ / P-1 / F1+).

No more than [CONFIRM] 25% of the portfolio shall be held at any single non-government institution (subject to FDIC insurance limits where applicable). U.S. Treasury exposure is not subject to a concentration limit.

The Sponsor’s finance officer shall report to the Board, at each regular meeting, on portfolio composition, weighted-average maturity, yield, liquidity coverage, and any deviations from this Policy. Material deviations require prompt Board notice.

The Board shall review this Policy at least annually and amend as needed. Material amendments require disclosure consistent with the Donor Advisory Agreement.

Document Key: investment_policy. Version: v0.2 (first-pass draft for counsel review). Draft Date: 2026-05-27. Effective Date: [CONFIRM] — none; this draft is not yet effective.