Church of the Cross United Methodist

Permanent Facility Endowment Fund Policy 

Description

The permanent endowment fund of Church of the Cross United Methodist, Lexington, Ohio (hereafter known as COTC) is established to provide long-term funding to benefit the improvements and maintenance of the physical facilities (assets) of COTC.  The permanent endowment fund shall be invested, maintained and managed by the East Ohio United Methodist Foundation. 

Committee Membership

 The committee shall be made up of 11 members as follows:

      The Committee Co-Chairs (2)

      Church Council Chair or Vice Chair (1)

      Member of the Finance Committee (1)

      Member from the Board of Trustees (1)

      A Lay Leader (1)

      The Senior Pastor as an ex officio member with vote

      Four at-large members (4)

 Six at-large members will be selected and nominated through the Lay Leadership Committee of COTC.  The Board of Trustees and the Finance Committee will select their own representatives from their respective members.  The Committee co-chairs will be selected from the at-large members by the Lay Leadership Committee.  The at-large members will serve no more than two consecutive three-year terms, with two at-large members rotating off every year.  Terms will be from January to December.

Quorum and Majority

A quorum is defined as a majority of the full committee.  All decisions will be made with a majority vote of the quorum.  No proxy votes will be permitted.  However, any vote to amend this policy or approve a resolution to invade the principal of the fund will require a two-thirds vote of the membership of the full committee.  Invading the principal will require additional approvals as defined under Principal Invasion section.

Reporting

At all times, the Committee will operate in full transparent view of the congregation.  On a semi-annual basis, the Endowment Committee will report to the congregation the following information:

      Membership of the Endowment Committee

      Balance of the Fund

      Amount of contributions to the Fund since the last report

      Amount of disbursements from the Fund since the last report

      The uses of those disbursements

      Any changes to this policy

 Additionally, the Endowment Fund, as an asset of the congregation, will be reported on all appropriate church financial reports.

Limitations on Investments

Because the purpose of the Endowment is to provide long-term financial stability, all investments will be made with a long-term outlook.  No investments may be made that violate Socially Responsible Investing Guidelines as defined in the United Methodist Book of Discipline.

Spending Policy

The income earned on the principal during the previous calendar year (October 1-September 30) will be determined on September 30^th of each year.  The Committee will make available no more than 100% of the income earned on the principal in the calendar year.  There shall be no invasion of the principal except as defined in this document.

Distribution

The available funds will be disbursed to the Trustees for capital improvements and/or the maintenance to the church, parsonage, or grounds as described in the United Methodist Book of Discipline. 

At no time shall the endowment pay for utilities, the salary, or benefits of staff, taxes or political campaigns or attempts to influence legislation.

Principal Invasion

At all times the Endowment shall be considered a long-term asset of the congregation.  Any unused funds from the income earned on the principal shall be considered part of the principal and shall remain in the Fund to ensure future financial viability.  However, in times of emergency the principal of the Fund may be invaded.  To request funds from the principal in times of emergency, the Church Council must pass a resolution with a two-thirds vote of Church Council.  The resolution must include:

      Amount requested

      Reason for the request

      The plan to repay the principal.  If repayment of the principal is doubtful, this must be stated explicitly.

      What other funding options have or will be investigated

 The Endowment Committee will receive this resolution for its consideration.  In order for the Endowment Committee to pass the resolution it must receive a two-thirds vote of the membership of the full committee.

If both the Church Council and the Endowment Committee pass the resolution, the Pastor will request the District Superintendent hold a specially called Church Conference as defined in the United Methodist Book of Discipline.    The Church Conference will review the resolution made by the Church Council.  In order for the Church Conference to approve any withdrawals of principal it must pass with a two-thirds vote of those present at the specially held Church Conference.

Changes to this Policy

The Endowment Committee may make changes to this policy, with a two-thirds vote of the committee, with the exception of procedures for invading principal.  Changes may be made to the procedures for invading principal after being approved by a two-thirds vote of the Committee and also by a two-thirds vote at a Church Council Conference.  Policy changes are to be reported to the congregation as soon as is practical.

Demise or Merger

In the event of the demise, consolidation, merger or liquidation of COTC, the Endowment Committee will make a recommendation to Church Council for the disposition of the Endowment Fund. 

In the event of the demise, liquidation or termination of the East Ohio United Methodist Foundation the Endowment Committee will make a recommendation for the reinvestment of the Endowment Funds. 

THE END OF THE DOCUMENT

Return to the Church Home page