From the SFWA CFO’s Office:
Less than 50% of SFWA’s income is produced by dues while the rest comes from the Author’s Coalition of America. There is no guaranteed that the ACA funds will continue very far into the future. Until recently all of SFWA’s funds have resided in a money market account that draws negligible interest. (See last year’s annual report at REF.)
In January 2013 the Board determined that 30% of the Money Market funds should be moved into long-term, conservative, and balanced growth funds to help ensure the long-term health of SFWA.
This year we have begun to invest funds from the money market accounts. The chosen investments are appropriate for money that will not be needed for at least five years, preferably longer. A long-term horizon for investing allows each fund to recover from any temporary setbacks while the conservative nature of the investment vehicles ensures that fluctuations will be less volatile than other, more aggressive investments. Both investments will generate current income in the form of dividends and interest which may be treated as operating income.
The status of funds will appear as part of the Annual Financial Report.