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Endow Charterdoc - SAMPLE

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    Endowment Fund Charter

    Prepared by: North Indiana United Methodist Foundation, Inc.

(Legal Name of church, full address), (hereafter referred to as “________________ UMC,”

    “The Church” or “Church”) hereby creates a permanent Endowment Fund to be known as

    the “(Name of church) Endowment Fund.” (hereafter referred to as “Endowment Fund” or

    “Fund’) This document, upon execution, is intended to amend and replace any and all

    previous documents establishing an endowment fund for The Church.

A. PURPOSE

The primary purpose of this Endowment Fund is to provide a means for members and

    friends of The Church to make gifts and bequests to provide a permanent endowment of

    financial support and living memorials. Gifts to the Endowment Fund will be held in

    perpetuity, if not otherwise designated by the donor, with income to be used to further

    Christian ministry and mission. Income from the Endowment Fund shall be used to assist

    The Church in fulfilling its purposes in Christian ministry and mission. This includes support

    of ministries of (Name of the Church, city, state), of the North Indiana Conference of the

    United Methodist Church, ministries of the United Methodist Church nationally or

    internationally and any other Christian ministry or mission deemed appropriate by the

    Endowment Committee.

This Endowment Fund and resulting income is intended for purposes that are not a part of

    The local Churches’ established programs, which are funded, or should be funded, through the annual operating budget of the church and the regular giving of those attending. It is

    NOT intended that Endowment Fund income provide for local Church general operating

    expenses. It IS intended that the Church annual budgetary process, together with annual giving, shall support normal and customary Church activities. Endowment Fund income

    should only be used to support ministries beyond normal local Church activities or to

    provide temporary assistance in starting new ministries in the local church.

The Fund may accept both cash and non-cash gifts and bequests. Non-cash gifts may

    include corporate stock, mutual funds, bonds, bank deposits, real estate, precious gems and

    metals, and other items deemed acceptable by the Endowment Committee.

B. ACCOUNTS

Within this Endowment Fund, the following accounts are hereby established to enable the

    Church to have an effective ministry:

    Endowment Fund Charter

General Accounts

    1. Undesignated: This account will receive gifts to the Fund, which are not designated

    for a particular purpose or restricted in any way. Income from this account will be

    used to fund the ministries or missions selected by the Endowment Committee.

    2. Missions: Income from this account shall fund missionary support, work camps,

    advance specials, and missionary projects locally and beyond.

3. Evangelism/Outreach: Income from this account shall fund efforts to reach

    additional persons for Christ.

4. Youth: Income from this account will provide funds to increase participation by youth

    in worship, education, fellowship; expand services provided by the church for youth;

    and support development of Christian youth in other ways.

    5. Education: Income from this account is to be used for special educational or

    evangelism programs, camperships, scholarships, leadership training of workers, and

    special workshops or seminars.

    6. Scholarships: Income from this account shall be used to provide scholarship grants

    to students seeking post-secondary education. First preference will be given to

    students who have been an active part of the life of the congregation of The Church.

    Scholarship grants may be made to persons who have recently graduated from high

    school, or to persons that decide to seek further education later in life.

7. Christian Life Development Account: Income from this account will be used to

    further spiritual development of individuals and corporate Christian life. Ministries

    may include, but are not limited to: Evangelism, Youth, Education, Discipleship and

    Fellowship. (Note this account could be used in place of other more specific account

    samples listed.)

8. Music, Worship and Arts: Income from this account will be used to enhance the

    worship experience and may provide funds for musical instrument replacement or

    major repair, other instruments, music leadership, choirs, special programs and drama.

    9. Building: Income from this account will provide for capital improvements, major

    repairs, equipment, furnishings or decorations for any properties owned by the

    church.

    (NOTE: The above accounts are shown as examples only. Each church should select the

    accounts they deem most meaningful for them. We suggest 3 to 8 initial accounts. All

    churches should have an Undesignated Account.)

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    Endowment Fund Charter

Other accounts may be established by action of the Endowment Committee or a Charge

    Conference. Such accounts may be established for specific projects, ministries or missions to

    enhance the total ministry of the Church.

There will be no minimum contribution required for gifts to accounts established by action of

    this Committee or a Charge Conference.

Donor Designated Accounts:

Other designated accounts may be established by individual donors who place specific

    designations or restrictions on their gift. However, such new designated accounts may only

    be established if the following criteria are met:

    1. The Endowment Committee agrees to accept the gift with the designations or

    restrictions proposed by the donor, and

    2. The Endowment Committee agrees to establish a new designated account to hold this

    designated or restricted gift, and

    3. The initial gift to the new designated account will be no less than $_______ (We

    suggest a minimum of $5,000.00).

There will be no minimum contribution required for additional gifts to accounts previously

    established by a donor.

Donors wishing to establish designated accounts of less than $_____________ (we suggest

    $5,000.00) will be encouraged to make their gift to one or more of the other existing accounts.

    Alternatively, it may be recommended that such gifts be placed in the Memorials Fund of the

    Church rather than in the Endowment Fund.

Principal and income of accounts created by action of individual donors will be used in

    accordance with the written directives provided by the donor at the time of making the gift.

    Such directives may not be changed at a later date by the donors or their family members.

All provisions of the Endowment Fund as to investment of funds, administration of funds, and

    limitation on use of distributions shall be applicable to both General Accounts and Donor

    Designated Accounts. All gifts made to the Fund shall be accepted subject to the terms and

    limitations set forth in this document.

Sub Accounts:

Funds cannot be designated to establish a sub-account within a previously established account,

    regardless of the amount of the proposed gift.

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    Endowment Fund Charter

C. MANAGEMENT OF THE FUND

Responsibility for the management of the Endowment Fund shall be vested in the Endowment

    Committee, subject to the direction of the Charge Conference as prescribed in the Book of

    Discipline of the United Methodist Church.

D. ENDOWMENT FUND COMMITTEE

The Endowment Committee shall be composed of ______ members: ______ at-large and

    _______ ex-officio members.

    (NOTE: We recommend a committee of 6 to 12 persons. No more than one-half the committee should be ex-officio members. Having an even number of committee members, and

    the pastor not having a vote leaves an odd number of voting members, which is desirable.)

At-Large Members: The at-large members will be nominated by the Church Nominations

    Committee and elected by the Charge Conference. The Nominations Committee shall seek

    at-large members among those members of the Church who have a strong interest in

    endowments, or expertise in legal, financial, public relations, or other services valuable to the

    committee. Ideally, members serving on the committee are strong financial supporters of the

    Church. Committee members should also have an understanding of the Church Vision and

    Mission.

    (NOTE: persons who have, or may appear to have, a conflict of interest should not serve on the committee. Committee members should not use their position on the Endowment

    Committee as a means to promote a product or service that is normally sold in the course of

    their livelihood (or of their spouse or other family member). If members of the congregation

    observe or perceive such conflict of interest, they will likely avoid contacting the committee

    or making a gift.)

Each ad-large member will be elected for a five-year term. There will be ___ members

    selected for each five-year term. Initially, members will be elected to 1, 2, 3, 4 and 5-year

    terms to establish the five-year rotation. At-large members may succeed themselves to a

    maximum of ____ consecutive full five year terms. Filling a vacancy for a partial term is not

    included in this limit.

    (NOTE: most church committees rotate after three years. An Endowment Committee needs more consistency of membership than most church committees do. Therefore, we recommend

    five-year terms and that members are allowed to serve more than one consecutive term. Some

    turnover of membership on the committee is needed. However, if the turnover is too frequent

    it will severely damage the success of the committee and the ability to attract gifts. There is

    much to be learned in developing a successful endowment program. Too much committee

    turnover will result in constant loss of that knowledge.)

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    Endowment Fund Charter

The chairperson of the Endowment Committee is nominated by the Nominations Committee

    and elected in the same manner as the other at-large Endowment Committee members. This

    should be a person who has a strong interest in helping the Endowment fund grow and

    succeed.

Nominations to fill vacancies will be made by the Nominations Committee for Election by the

    Administrative Board or Charge Conference.