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Community fund set up for groups

The city of Terrace is spearheading an endowment fund initiative that will benefit community groups and organizations.

The city of Terrace is spearheading an endowment fund initiative that will benefit community groups and organizations.

The seed money for the Terrace Community Foundation comes from a $50,000 Northern Development Trust grant which will soon be matched by the city.

The city has contributed $33,000 so far to the Terrace Community Foundation, with $17,000 still to come.

This investment of $100,000 is set to earn interest, which will flow directly back to the community.

“It’s really a lasting legacy this type of initiative that will benefit the community for many years to come,” said mayor Dave Pernarowski, who introduced the idea to city council in 2009.

The Terrace Community Foundation will be run independently from the city.

“We’re just a catalyst to get it going,” said Terrace’s finance director Ron Bowles.

The money will be pooled and invested, and the interest will benefit Terrace and area in the form of grants to community groups.

“The money is kept forever because the principle can never be spent,” said Bowles.

The current cash is pooled with Prince George’s community foundation so that maximum investment benefits are earned. Prince George will manage the money, which saves administration  costs until the principle is large enough for  interest to create a job in Terrace for that task.

After the seed money is invested, the principle grows via donations and these can come in many forms like corporate sponsorship, personal donations or will inheritance.

Those who contribute can be specific about where the interest from their money goes, so if someone wants to direct money towards a particular community group, that is an option.

The foundation is currently seeking three volunteers for its founding board of directors. The founding directors will then recruit more directors. Those interested can contact Bowles at city hall.

Councillor Bruce Bidgood indicated that he’ll be bringing a motion forward at the next city council meeting to give 10 per cent of the city’s gaming earnings from Chances towards the principle amount. The estimated amount of money the city budgets to receive from its gaming revenue is around $400,000.

It will take more than one year before community groups can start applying for grants. Bowles estimates the money will earn interest by roughly 2013.

“The amount available will depend on the board raising money,” he said.