The ‘New’ Short Term Fund

French Harmon
French Harmon President, Chief Executive Officer & Treasurer

 The Kentucky Baptist Foundation (KBF) is excited to offer the Short Term Fund (STF) as a new investment option to churches, KBF agencies and institutions and other nonprofit organizations. The STF is a low-risk investment alternative to traditional savings or money market accounts which will give participants daily liquidity, security and a competitive return (1.25%, May 2021).

The STF allows participants to maximize the return on cash reserves and designated funds (reserve fund, building fund, cemetery fund, etc.) while protecting those funds from the volatility of the market. Earnings are posted monthly, and there are no limits or penalties for withdrawals. A minimum of $5,000 is required to start a new account.

The earnings rate is determined by market conditions and is set by the Investment Committee of KBF. The current rate is reviewed monthly and is subject to change. Past performance is not a guarantee of future results.

Special advantages of the STF include:

  • Stable value-STF accounts are not subject to market volatility. Above market rate (1.25% annualized, May 2021). Liquidity-withdrawals may be requested at any time.
  • Income posted monthly.
  • No minimum or maximum investment period.
  • No limit or penalties for withdrawals.

A diversified portfolio is kept to lower risks and increase the safety of the account.

While KBF is not an FDIC-insured bank, the foundation has allocated funds to serve as a reserve account to support liquidity and extend the investment horizon.

Contact us for more information at the Kentucky Baptist Foundation office at 502-489-3533.

The information in this article is provided as general information and is not intended as legal or tax advice. For advice and assistance in specific cases, you should seek the advice of an attorney or other professional adviser.

French Harmon

French Harmon

French Harmon is a native Kentuckian. He was born in Ashland and graduated from Paul G. Blazer High School. Harmon holds educational degrees from Marshall University, University of Louisville, University of the Cumberlands and The Southern Baptist Theological Seminary. He has earned an executive education certificate in non-profit leadership from the Harvard Kennedy School. He has pastored three congregations in Kentucky—Allen Baptist Church, Fort Mitchell Baptist Church and First Baptist Church in Somerset. He has been a professor in leadership studies at the University of the Cumberlands and was team leader for church development at the Kentucky Baptist Convention. He is married to Rachael and together they have three children—Trae, Madison and Jack. Harmon has written one book God’s Ordinary Giants (2020). He enjoys sports, photography, travel and presidential history.

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