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Funding Plan

The commitment by the owner group to a particular funding level after review of the desired impact established by testing the results of different funding models and selecting the preferred model.

For example:
  • We commit to an annual funding level that remains fixed at $85,000 per year for the next 5 years. (Linear Funding)
  • We commit to making an initial investment of $3,000 per owner in order to bolster the reserve fund.
  • We will set aside sufficient funds, as required each year, to ensure that we never encounter a levy (Lumpy Funding)
The funding plan ensures that the owner group achieves its funding goals.

Whereas the expenditure plan answers the question: "How much money will we need?", the funding plan answers the question: "How much money will we have?"


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Fig. 30-year funding plan showing five special assessments.Is "I. Care", our cartoon character, trying to raise funding levels faster than the owners can sustain
Fig. Is "I. Care" is trying to raise funding levels, but this may be faster than the owners can sustain.

See also:
  • Funding Strategy

I. Care is trying to ensure that inflows match outflows, but this requires cooperation and teamwork
Fig. I. Care is trying to ensure that inflows match outflows, but this requires agreement on long-range stewardship, cooperation and teamwork.

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