Guidelines below- after we see how many United Methodists it does take to changse a light bulb!!
How many United Methdoists does it take to change a light bulb? Now you know!
ASBURY UNITED METHODIST CHURCH
PERMANENT ENDOWMENT FUND
INVESTMENT MANAGEMENT GUIDELINES
Revised April 20, 2010 and approved by Church Conference
General Responsibilities
A. The Board of Trustees of Asbury United Methodist Church shall recommend to the Church Conference either the reception or rejection of:
1. All bequests (i.e. gifts left in a will) given to the church, considering both the mission of Asbury UMC and its ability to administer such bequests.
2. All gifts that are designated to be placed within the Permanent Endowment Fund by living persons, considering both the mission of Asbury UMC and its ability to administer such gifts. These designated gifts shall be known as “living gifts”. A letter of the donor’s intent must accompany each living gift, stating their desire for the gift to be placed within the Permanent Endowment Fund.
The final decision to receive or reject all bequests and all living gifts shall belong to the Church Conference alone.
For information: Memorial gifts that are not designated to be placed in the Permanent Endowment Fund will continue to be received and managed by the Gifts & Memorials Committee, after being counted by the church tellers. (Note: a “memorial gift” is money that is given to the church by a second party in memory of someone who is deceased.)
B. After bequests or living gifts have been properly received they shall be placed in the Permanent Endowment Fund, unless designated otherwise by the donor.
C. The church Treasurer is responsible for the accounting and disbursement of all funds from the Permanent Endowment Fund, as directed by the Administrative Board.
D. All investments in securities, bonds, and money market shall be managed by an experienced and reputable financial management institution. All other investments (i.e. real estate) will be managed by the Board of Trustees.
E. Withdrawal or disposal of any assets of the Permanent Endowment Fund (beyond what is specified below, in Section III) must be approved by 75% of the members who are present at a session of Church Conference that has been called for this purpose.
F. Any changes to these Guidelines shall be made in either of the following ways:
i. The Finance Committee shall review the Guidelines annually. Possible changes to the Guidelines that are approved by the Finance Committee shall be recommended to the Administrative Board. Changes that are approved by the Administrative Board shall be recommended to a session of a Church Conference that has been called for this purpose, with passage requiring a 75% approval of the members who are present.
ii. An individual may recommend changes to the Guidelines at a meeting of the Administrative Board. The Administrative Board shall vote whether to refer the recommendation(s) to the Finance Committee for study. Possible changes to the Guidelines that are approved by the Finance Committee shall be recommended to the Administrative Board. Changes that are approved by the Administrative Board shall be recommended to a session of a Church Conference that has been called for this purpose, with passage requiring a 75% approval of the members who are present.
iii. These Guidelines shall remain in compliance with the current Book of Discipline.
II. Management of the Endowment
A. There shall be a Permanent Endowment Fund Committee which will be a sub-committee of, and responsible to, the Board of Trustees, who shall manage the Permanent Endowment Fund’s investments.
B. The Permanent Endowment Fund Committee shall be comprised of five voting members, serving one year terms which may be renewed: one elected from and by the Board of Trustees in January, one elected from and by the Finance Committee in January, two Members at Large elected following normal procedures at the fall Church Conference, and the church Treasurer. This Committee shall elect its own Chairperson.
C. The Permanent Endowment Fund Committee shall meet at least quarterly to review reports of our investment holdings and at least annually with a representative from each institution that manages the investments.
D. The Permanent Endowment Fund Committee will meet with the Board of Trustees and Finance Committee annually (before the annual budget is prepared) to review the goals and returns of the investment.
E. The Permanent Endowment Fund Committee shall strive to see that companies in whom our stocks are invested follow business practices that are in accordance with our United Methodist Social Principles and beliefs.
F. The Permanent Endowment Fund Committee shall put into practice an investment strategy that provides both steady growth of our Fund and income from our investments.
G. The Permanent Endowment Fund Committee shall provide a report to the Administrative Board in November indicating the estimated income by the end of the current year.
H. The Endowment Fund will be audited annually by the church Auditing Committee and the Audit Report presented to the Administrative Board.
Guidelines for Expenditures of the Endowment Income
A. 10% of the annual income of the Permanent Endowment Fund shall be given as a tithe to missions beyond the walls of our church, as needs arise, and as determined by the Missions Team.
B. 10% of the annual income of the Permanent Endowment Fund shall be given as a tithe to our W. Pennsylvania Annual Conference as a portion of our annual Mission Share.
C. 45% of the annual income of the Permanent Endowment Fund shall be designated for program and ministry expenses. “Programs” shall be defined as those activities which are done by: The Worship Committee, the Caring Team, the Education Committee, the Prayer Action Team, (excluding the Missions Committee, as they are covered in IIIA), and any additional work areas that are approved by the Administrative Board to be placed under the authority of the Council on Ministries.
Expenditures may also include but are not limited to:
1. Startup support for new ministry programs.
2. Additional Staffing Needs for Programs.
Funding for these categories could continue for a length of time and amount to be determined by the Administrative Board with a recommendation from the Finance Committee.
NOTE: Program/Ministry needs should be brought to the attention of our work areas
for discussion and study. Each work area shall submit their requests for funding to the Council of Ministries, at regularly scheduled COM meetings. COM will prioritize requests and make a recommendation to the Finance Committee. Requests for staff funding must either be referred to or originate in the S/PPRC. The Finance Committee in conjunction with COM, and the S/PPRC where applicable, will review all requests and their impact on the annual budget. The annual budget will then be submitted to the Administrative Board for final approval. It is expected that planning for all areas be completed for inclusion in the annual budget. Any adjustments that need to be made to the annual budget once the budget is complete, must follow these same guidelines.
D. 35% of the annual income of the Permanent Endowment Fund shall be designated for capital improvements to the building and grounds of the church, parsonage, and any other structures that are built, and/or any structure or land that is owned, by the church - excluding improvements or repairs to the rental property. (“Capital improvements” shall be defined as “any repair, remodel, addition or replacement that extends the life, improves the utility, or increases the value, of the property and/or ministry of Asbury United Methodist Church.”) The Board of Trustees, in conjunction with the Finance Committee, shall submit a plan for capital improvement disbursements to the Administrative Board for approval. This should be included in the proposed annual budget. Changes may be made as needed throughout the year by following this same procedure. (This money shall not be available for improvements or repairs to the rental property without the approval of 75% of the members who are present at a session of Church Conference that has been called for this purpose.)
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Miscellaneous Guidelines
A. Unspent Permanent Endowment Fund income in III C and III D may be carried over each year to be used in succeeding years. The unspent balance will be available for use in its original area (i.e., III C or III D) and may not be transferred between the categories.
B. Income available for expenditure beginning in January of each year by those responsible for III A, B, C and D shall come from:
i. The previous year’s dividends and interest earnings of the Permanent Endowment Fund, as indicated on that year’s December report;
ii. Income from the rental property of Asbury United Methodist Church, provided
that $5,000 of rental income remains available for emergency rental property repair at the beginning of each year when the groups listed in III A, B, C and D are budgeted their yearly amounts, and any other revenue generating property that is acquired, or purchased by funds from the Permanent Endowment Fund;
iii. Any income that has been carried over from preceding years.
C. The Permanent Endowment Fund’s capital gains and appreciation, (either in part, or in full), shall not be considered as “income available” for use by any of the work areas of Asbury United Methodist Church without the approval of 75% of the members who are present at a session of Church Conference that has been called for this purpose.