DOC

RESOLUTION ESTABLISHING

By Dennis Hall,2014-07-10 19:36
8 views 0
RESOLUTION ESTABLISHING ...

    Sample (2) Resolution to Establish an Endowment Fund

    This sample is for informational purposes only. Please consult your own legal counsel.

WHEREAS, ________________ Lutheran Church of (City), (State), has a living endowment of

    faithful members with rich gifts and varied talents.

As each has received a gift, employ it for another, as good stewards of God’s varied grace:

‘...whoever renders it by the strength which God supplied, in order that in everything God may

    be glorified.’ (1 Peter 4:10-11)

NOW, THEREFORE, in order to establish an Endowment Fund from which both principal and

    income may be used, all to enable the further growth of our church, its ministries and

    stewardship opportunities:

BE IT RESOLVED that the members of _________________ Lutheran Church establish an

    Endowment Fund to receive and administer bequests, estates, insurance, gifts and other assets.

    And,

    BE IT FURTHER RESOLVED that the efforts of _________________ Lutheran Church in establishing the Endowment Fund be dedicated to the Glory of Almighty God. And,

    BE IT FURTHER RESOLVED that the Board of Stewardship shall be custodian of the Endowment Fund. And,

    BE IT FURTHER RESOLVED that while ________________ Lutheran Church has every intention of using the Endowment Fund as set forth in these resolutions, it does recognize that

    with the passage of time and changing circumstances, there may be a time when it is not feasible

    to utilize the Endowment Fund as was intended. Should that situation develop,

    _______________ Lutheran Church or its successors in interest shall then be free to make such

    other use of the income and principal as is consistent with the charitable and religious purposes

    of _______________ Lutheran Church, in accordance with the laws of the State of

    ____________, and preserving the principal of those gifts designated to be perpetual, carrying

    out the donor’s wishes.

NOW, THEREFORE, in order to carry out the purposes of the Endowment Fund and to enable

    the further extension and stewardship work of our church,

BE IT FURTHER RESOLVED:

    I

    BOARD OF STEWARDSHIP

    1. The Board of Stewardship shall administer the Endowment Fund. 2. All Board of Stewardship members shall endeavor to maintain a high degree of

    communication with the Church Council, other Boards and Committees within the

    Church and members of the Congregation, to nurture the total life and mission of the

    Church and of the Endowment Fund.

    3. The pastors of the Church and President of the Congregation shall be ex-officio, non-

    voting members of the Board of Stewardship.

    4. The Board of Stewardship shall adopt standards and goals to guide in the expenditure of

    monies from the Endowment Fund which it may amend from time to time within the

    stated purposes of the Fund.

    5. The Board of Stewardship may establish and maintain accounts with such financial

    institutions as it may by resolution authorize and determine. All checks and other

    documents transferring or expending any funds or assets in the Fund shall be executed by

    the Chairman of the Board of Stewardship, the Senior Pastor and the Treasurer of the

    Congregation.

    6. The Board of Stewardship may ask other members of the Congregation to serve as

    advisory members and may employ, at the expense of the Fund, such professional

    counseling on investments and legal matters as it deems to be in the best interests of the

    Endowment Fund.

    7. The Board of Stewardship shall maintain complete and accurate books of the accounts

    and may employ such professional help as it deems necessary in this regard. The books

    shall be audited annually in time so that such Audit Report will be on file at the time of

    the annual meeting of the Voters’ Assembly.

    8. No member of the Board of Stewardship shall engage in any self-dealing or transactions

    with the Endowment Fund in which the member has direct or indirect financial interest.

    Each member shall at all times refrain from any conduct in which his or her financial

    interests would conflict with the interests of the Endowment Fund.

    II

    DUTIES

    1. The Board of Stewardship or Church may receive funds through gifts, bequests, wills,

    estates or trusts from any source, whether in cash or in other property. All Endowment

    Fund monies and property shall be kept and maintained separate, distinct and

    independent from the funds and property otherwise belonging to the Church.

    2. The Board of Stewardship shall investigate ways in which the Endowment Fund can best

    be used to the Glory of God. Other Boards and Committees within the Church and

    members of the Congregation may make written requests to the Board of Stewardship. 3. The Board of Stewardship, at each annual meeting of the Voters’ Assembly, shall render

    a full and complete account of the administration of the Endowment Fund during the

    preceding year.

    4. The Board of Stewardship shall in no event be required to make physical segregation of

    the assets of the Endowment Fund in order to conform to the directions of any individual

    donor but may establish separate accounts in its accounting records. 5. All new members of the Board of Stewardship are to receive a copy of this Resolution, a

    copy of the standards and goals adopted by the Board, and shall become acquainted with

    the function and purposes of the Endowment Fund.

    III

    POWERS

In the administration of this Endowment Fund, the Board of Stewardship shall have all powers

    and authority necessary to carry out the purposes of the Fund, including the following powers

    and authority on behalf of ________________ Lutheran Church of (City), (State):

    1. To take, have, hold, sell, exchange, rent, lease, transfer, convert, invest, reinvest, and in

    all other respects part thereof, as they in their judgment and discretion shall deem wise

    and prudent;

    2. To retain any property in the form in which received; to convert and reconvert the

    Endowment Fund, or any part thereof, into other kinds and forms of property, real or

    personal or mixed; and to invest or reinvest the Fund or assets herein, or any thereof, as

    they shall deem wise and prudent, including in such common or preferred stocks, bonds,

    debentures, mortgages, notes or other securities, investments, or property whether real or

    personal, which they in their absolute discretion may select or determine, and including,

    without limitation, savings deposits, or any bank, mutual savings bank, federal home loan

    bank, or savings and loan association, or in any common trust fund, mutual fund, or any

    like fund, subject to the usual standards of prudence required of trustees of similar funds; 3. To receive the income, profits, rents and proceeds of the Endowment Fund and to collect

    and receipt for the same, and pay all administrative and necessary expenses in connection

    with it. Expenses are to be paid from the Endowment Fund income; 4. To receive gifts, both designated and undesignated;

    5. To make, execute, and deliver all instruments necessary or proper for the accomplishment

    of the purposes of the _____________ Lutheran Church Endowment Fund or of any of

    the foregoing powers, including deeds, bills of sale, transfers, leases, mortgages,

    assignments, conveyances, contracts, purchase agreements, waivers, releases and

    settlements;

    6. To contribute, donate, support or distribute, from time to time, for the purposes herein

    stated, such payments or amounts as the Board of Stewardship in its discretion shall

    determine, and consistent, so far as practicable, with the recommendations of the

    Congregation as to the use of Endowment Fund income;

    7. To determine what is principal and income according to accounting procedures; 8. To hold investments in the name of the _______________ Lutheran Church of (City),

    (State) Endowment Fund on behalf of the Congregation and to sign checks and all other

    necessary documents on behalf of the Congregation in furtherance of the Endowment

    Fund purposes.

    9. To employ, and reasonably compensate from the Endowment Fund income, accountants,

    agents and attorneys to assist and advise in the execution of the Endowment Fund,

    without liability for their omissions or neglect, but using reasonable care in their selection,

    and to rely on the advice of the persons so employed.

The Board of Stewardship shall not be liable for any losses which may be incurred upon

    investments of the Endowment Fund except to the extent that such losses shall have been caused

    by bad faith or gross negligence of the Board members. No member shall be personally liable as

    long as he or she acts in good faith and with ordinary prudence in discharging the duties of the

    office. Each Board member shall be liable only for his or her own willful misconduct or

    omissions in bad faith. No Board member shall be liable for the acts or omissions of any other

    Board member, or of any accountant, agent, attorney or custodian selected with reasonable care.

The Board of Stewardship members shall not receive any compensation but may be reimbursed

    from the income of the Trust Fund for expenses reasonably incurred.

    IV

    THE CONGREGATION

    1. The Voters’ Assembly may, upon the recommendation of the Board of Stewardship,

    decide by a two-thirds (2/3) majority vote of the Voters’ Assembly when and if any Fund

    principal, or corpus, shall be used. This holds true if the principal, or corpus, is ever

    needed in the event of a catastrophe or dire emergency.

    2. This Endowment Fund Resolution may not be altered or amended except by a two-thirds

    (2/3) majority vote of the Voters’ Assembly at an annual meeting of the Congregation, or

    at a special meeting called specifically for the purpose of amending this Resolution.

    V

    TAX EXEMPTIONS

Any gifts given to the Endowment Fund, as well as all income derived therefrom, shall be used

    exclusively for religious, charitable and education purposes within the meaning of Section

    501(c)(3) of the Internal Revenue Code of 1986 or the corresponding provisions of any future

    United States Internal Revenue Law. This Endowment Fund is created and shall be operated

    exclusively for Church purposes. No part of the income or property of this Fund shall inure to

    the benefit of, or be distributable to, any member, director or officer of the Church, or to any other private person, except that the Endowment Fund Committee is authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth herein. No part of the activities of the Endowment Fund shall be the carrying on or propaganda or otherwise attempting to influence legislation, and it shall not participate in or intervene in (including the publishing or distribution of statements) any political campaign on behalf of any candidate for public office. Notwithstanding any other provision of this document, the Endowment Fund shall (a) not carry on any activities not permitted to be carried on by an entity exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code of 1986 or the corresponding provision of any future United States Internal Revenue Law or (b) do any act which would render contributions to the Endowment Fund non-deductible under Section 170(c)(2) of the Internal Revenue Code of 1986 or the corresponding provision of any future United States Internal Revenue Law.

    This Endowment Fund may be dissolved in accordance with the laws of the State of ____________. Upon dissolution of this Endowment Fund, and after payment of all liabilities, obligations, costs and expenses incurred by this Endowment Fund, any remaining assets shall be distributed to such entities organized and operated exclusively for one or more purposes described in Section 170(c)(2) and 501(c)(3) of the Internal Revenue Code of 1986 or the corresponding provision of any future United States Internal Revenue Law.

Report this document

For any questions or suggestions please email
cust-service@docsford.com