Permanent Endowment Fund

Permanent Endowment Fund of the Bloomfield United Methodist Church

THE PURPOSE

The Permanent Endowment Fund of the Bloomfield United Methodist Church, Bloomfield, Iowa, hereinafter referred to in this document as the “Endowment Fund”, is established for the purpose of providing members and friends the opportunity to make charitable gifts to the Bloomfield United Methodist Church, hereinafter referred to in this document as the “Church”, that will become a permanent endowment of financial support and a living memorial.

ADMINISTRATION

The Endowment Fund will be administered by the Permanent Endowment Fund Committee of the Church, hereinafter in this document referred to as the “Endowment Fund Committee”, under authority of the Charge Conference of the Church. The Endowment Fund Committee shall report annually to the Charge Conference and quarterly to the Administrative Board regarding its actions. The Endowment Fund Committee shall advise the Administrative Board and Charge Conference on all matters pertaining to the Endowment Fund and the Charge Conference shall have final authority, with the Administrative Board acting on the Charge Conference’s behalf when the Charge Conference is not in session or near to session.

MEMBERSHIP

The Endowment Fund Committee shall be formed immediately at the first meeting in the new church year of the Administrative Board, the Board of Trustees, and the Finance Committee and shall consist of nine members whose service will be limited to two consecutive terms (after a break of one year, the individual member can be elected again): The makeup of the Endowment Fund Committee shall be as follows:

1. One member each from the Administrative Board, the Board of Trustees, and the Finance Committee appointed by the respective board or committee at the beginning of the member’s three-year term to serve concurrently for three years on both their respective board or committee and the Endowment Fund Committee.
2. Four members elected “at large”. The initial class of members “at large” shall be divided into classes of staggered terms of four years, to insure continuity;
3. The senior pastor; and
4. A chairperson elected by the Endowment Fund Committee.
5. The committee shall elect additional officers from its members as the committee deems necessary.

GIFT TO THE FUND

The Endowment Fund Committee shall have the authority and responsibility to accept or reject any and all gifts to the Endowment Fund in keeping with the authority granted by the Charge Conference. Gifts to the Endowment Fund shall be classified as “designated” or “undesignated”:

1. Designated: Gifts earmarked to be used for church programs, worship, missions, and buildings and grounds. Distribution of income will be done accordingly.
2. Undesignated: Gifts earmarked for the general endowment. Income from the undesignated endowment may be used for church programs, worship, missions, and buildings and grounds.
3. Under extraordinary circumstances, funds may be accepted and earmarked for other areas as approved by the committee.

The Endowment Fund’s principal will not be invaded in the normal course of events, only the interest earned by the Endowment Fund will be used to fund church programs, worship, missions, and buildings and grounds. Under extreme situations, the church may invade the principal, but only after a 3/4ths vote of those present at a Church Conference.

INVESTMENT OF ENDOWMENT FUNDS

The Endowment Fund’s investment principles are:

A. Conservation of Principal for the effective maintenance of purchasing power;
B. Regular income at a reasonable rate; and
C. Growth of income and principal over and above that necessary to offset rises in the cost of living.

LIABILITY OF DIRECTORS AND MEMBERS OF THE COMMITTEE

In the absence of gross negligence or fraud, no member of the Bloomfield United Methodist Church, its Church Charge Conference, its Administrative Board, or its Endowment Fund Committee shall be personally liable for any action made or omission with respect to the Fund.

DUTIES AND POWERS

The Endowment Fund is created and exists solely for charitable purposes with its primary objectives being the establishment, promotion, and development of religious, charitable and educational activities of the Church. The Endowment Fund shall exist under the authority of the Charge Conference. As authorized and directed by the Charge Conference, the duties and powers of the Endowment Fund Committee with respect to the Endowment Funds shall be:

1. Receive and administer bequests made to the Endowment Fund and/or designated by donors; receive and administer all trusts; invest all trust funds conformity with the laws of the country, state, or like political unit in which the local church is located;
2. Emphasize the need for adults of all ages to have a will and an estate plan and provide information on the preparation of these to the members of the congregation;
3. Stress the opportunities for church members and constituents to make provisions for giving to the Church and United Methodist causes by means of wills, annuities, trusts, life insurance, memorials, and various types of property;
4. Arrange for the dissemination of information that will be helpful in pre-retirement planning, including such considerations as establishing a living will and a living trust, and the need for each person to designate someone to serve as a responsible advocate should independent decision-making ability be lost;
5. To follow the guidelines and actions initiated by the charge conference, overturn any transaction that the charge conference may deem excessive, and remove any trustee who does not carry out the directions of the charge conference. Careful attention will be given to the election of trustees to ensure that there is no conflict of interest;
6. To publicize the Endowment Fund and its purposes, and to inform the members and friends of the Church of the methods and means of giving to the Endowment Fund;
7. To counsel, upon request, with prospective donors to the Endowment Fund, and to assist legal and financial advisors of such donors in carrying out the wishes and desires of such donors;
8. To invest, through financial counsel, the funds of the Endowment Fund, and to re-invest such funds from time to time, under financial criteria which the Endowment Fund Committee shall develop;
9. To sell or otherwise convert to cash any gifts, devises or bequests of real or personal property, and to invest such funds in the assets of the Endowment Fund; provided, however, that in its discretion, the Endowment Fund Committee may retain real or personal property in the form in which it was received by the Endowment Fund, but in no event shall any such action be taken by the Endowment Fund Committee which would result in the Endowment Fund Committee engaging in any business or other activity which would endanger the tax-exempt status of the Church; and,
10. To hold and possess such other powers and duties as shall be incident to or inherent in the aforesaid powers and duties, and not inconsistent therewith, and assume other responsibility as determined by the Charge Conference.

FUND APPROPRIATION

The Endowment Fund Committee shall report to the Administrative Board and Charge Conference as to the earnings of the Endowment Fund which shall be available for appropriation. In the case of designated Funds, the Committee will advise as to the appropriate distribution within the ear-marked designations--church programs, worship, missions, and/or building and grounds—and the Charge Conference will authorize such distribution. In the case of undesignated Funds, the Committee may ask church boards, committees, and/or individuals to submit a request for funding some area of church life and/or programming outside or in addition to those covered under the annual budget. However, in the course of normal events, funds earned through the endeavors of the Endowment Fund Committee are not to be used for the annual budget of the Church. Only under extreme situations, the church may use Endowment Funds and/or earnings to supplement the annual budget but only after a ¾ths vote of those present at a Church Conference. (The thought here is that any church, group, and/or organization without funding and/or participation from its current, active members is dying. In the course of normal events, the current, active congregation will provide support for the annual budget of the Church.

The Endowment Fund Committee will have final authority to authorize distributions from the interest earned by the Endowment Fund. The Endowment Fund Committee shall report earnings and distributions to the Administrative Board on a regular basis and to the Charge Conference on an annual basis. Distributions shall be made by the Endowment Fund Committee on at least an annual basis.

AUDIT

An annual audit of the Endowment Fund shall be conducted by the Church. Members may be appointed from its body to conduct the audit, or the audit may be done by an outside certified public accountant. Appointed volunteers should not be current Endowment Fund Committee members. If an outside person or firm is hired, interest income from the Fund may be used for the audit.

MERGER, CONSOLIDATION, OR DISSOLUTION

If, at any time, the Church is lawfully merged or consolidated with any other church, all the provisions hereof in respect to the Fund shall be deemed to have been made in behalf of the merged or consolidated organization which shall be obligated to administer the same in all respect and in accordance with the terms thereto. If the Church should ever be dissolved without any lawful successor, distribution of the principal and accumulated income shall be determined by 2/3rds vote of those present at a duly announced Church Conference.

AMENDMENTS

Technical corrections and amendments to this document must not alter the stated purpose of the fund and should require at least 3/4ths vote by a duly announced Church Conference.

This Permanent Endowment Fund agreement was adopted on this ___________day of _____________ 20___ at a duly authorize Charge Conference of the Bloomfield United Methodist Church, Bloomfield, Iowa, by a vote of ____________ for and _____________ against and ___________ abstained.

Recording Secretary ___________________________ Pastor ___________________________

(Revisions approved at Church Conference on October 16, 2011)