Endowment Funds Policy

[Note: The following Endowment Funds Policy formerly was incorporated in the church bylaws as an addendum. On May 18, 2014, the membership approved revised bylaws deleting this policy from the bylaws and providing that any new endowment funds policy requires approval of both the Board and the membership. Until a new endowment funds policy is approved by the board and membership, the old policy below remains in effect as a board policy.]

Management of trusts for which the church is Trustee shall be under the general direction of the Board of Trustees. The Board hereby designates the Finance Committee [now Investments and Endowments Committee] to oversee the investment of gifts. The legal instruments establishing each trust will specify who is responsible for the investments of the trust’s assets.

I. ESTABLISHMENT OF ENDOWMENT FUNDS (GUIDELINES FOR USE OF GIFTS) The Board of Trustees recommends the establishment of four endowment funds, categorized as follows:

A) Primary Endowment Fund. The purpose of this fund is to provide a permanent resource for long-term church goals, as formulated by the congregation. Constraints:

1. Administered separately from other fund categories

2. Income accrues to principal

3. No part of principal (or interest) may be used except by two thirds vote of the Board of Trustees and a majority vote at two congregational meetings (with this proposal on the agenda) held at least two months apart but within the same year

4. No principal may be used for ongoing operating expenses

B) Emergency Endowment Fund. The purpose of this fund is to provide a permanent resource for emergencies (as defined by the Board of Trustees).Emergency Endowment Fund. Constraints:

1. Administered separately from other fund categories

2. Income accrues to principal

3. No part of principal (or interest) may be used for the defined emergency except by two-thirds vote of the Board of Trustees

4. No principal (or interest income) may be used for operating expenses nor be transferred to any other endowment fund except once annually at the express designation of the Board of Trustees (two-thirds vote) and majority approval of the congregation (at a meeting called with this proposal on the agenda)

C) Income Endowment Fund. The purpose of this fund is to support the annual operating budget of the church. Constraints:

1. Administered separately from other fund categories.

2. Interest income from this fund (after allowance for inflation) may be used to supplement the church’s operating budget as needed. Available interest income will be determined at the end of each calendar year and shall be limited to any excess at that time over the amount <of the principal adjusted by> that would be earned if invested at the twelve month percentage change in the most recent consumer price index (CPI) estimate.

3. No part of the principal may be used except by majority vote at two congregational meetings (with this proposal on the agenda) held at least two months apart but within the same year.

4. The principal may not be used for operating expenses nor any money transferred to any other endowment fund.

D) Charter Endowment Fund(s). The purpose of any Charter Endowment Fund is to provide a permanent resource for special projects as identified by the church congregation or designated by individual donors and accepted by the Board of Trustees. Constraints:

1. Administered separately from other fund categories.

2. Income accrues to principal or to the operating fund of the project as specified in each fund.

3. The principal may not be used for operating expenses of the chartered project, nor any money transferred to any other project or fund.

II. DISTRIBUTION OF UNSPECIFIED GIFTS AND BEQUESTS Unless determined otherwise by a two-thirds vote of the Board of Trustees, distribution of unspecified gifts and bequests (excluding ordinary Sunday collections) among the funds will be determined as follows:

A. All gifts of $1,000 or more will be placed in the Primary Endowment Fund

B. All gifts of less than $1,000 will be placed in an endowment fund determined by the Board of Trustees.