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PERMANENT ENDOWMENT FUND

By Jeanette Peters,2014-07-10 18:42
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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 consist of eight members whose service

    will be limited to two consecutive terms (after a break of one year, the individual member

    can be elected again):

    1. One member each from the Administrative Board, the Board of

     Trustees, and, the Finance Committee;

    2. Three members elected “at large”. The initial class of members “at

    large” shall be divided into classes of staggered terms of three years, to

    insure continuity;

    3. The senior pastor; and

    4. A chairperson elected to a single three-year term.

    (A chairperson-elect will be chosen at the beginning of the

    chairperson’s third year.)

    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 groundsand 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 ?ths 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 Charge Conference or Administrative Board acting on behalf of the

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

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