A non-profit community health center was seeking to increase the yield on its safest funds, which were invested in cash, CDs, U.S. Treasurys, and short-term bonds, yielding less than 1%. They also wanted to create additional incentives to retain key executives.
Grant Hinkle & Jacobs repositioned $6 million of the organization’s $10 million liquid assets into a cash alternative program that delivers:
- 3% to 6% yield on its safest assets, without sacrificing safety or liquidity.
- Increased yield as interest rates rise.
- $16 million of cumulative life insurance death benefit protection on its three key officers, a portion of which is to be paid to their heirs as an additional executive benefit if death occurs while employed by the health center.
Concerns about cash flows and yields were successfully addressed and the board feels confident the organization will be financially protected should one or more of its key executives pass away.