Chapter 8.    ENDOWMENT AND MEMORIAL FUNDS AND COMMITTEE

B8.01           RESOLUTION REGARDING THE ENDOWMENT & MEMORIAL FUNDS

WHEREAS, the Congregation of Christ’s Evangelical Lutheran Church of Oreland, Pennsylvania, recognizes that Christian stewardship involves the faithful management of all of God’s gifts, including time, talents, and funds and assets received from any sources; and

WHEREAS, Christians can and do contribute to the church through a variety of giving arrangements, including but not limited to bequests, legacies, trusts, annuities, life insurance and the transfer of assets (all herein collectively referred to as “gifts”); and

WHEREAS, the Congregation desires to encourage these gifts and to receive and administer them in a manner consistent with the loyalty and devotion to the Lord expressed by the donors and in accordance with the policies of the Congregation; and

WHEREAS, the Congregation of Christ’s Evangelical Lutheran Church recognized the need to establish Endowment and Memorial Funds and an Endowment and Memorial Committee and adopted a Resolution regarding the same on January 29, 1990; and

WHEREAS, in order to carry out the original Resolution adopted January 29, 1990, and the goals expressed above, the Congregation desires to continue to maintain and operate the existing Endowment Fund (hereinafter “E-Fund”) and the existing Memorial Fund (hereinafter “M-Fund”) which shall include, respectively, the existing funds of the E-Fund and the M-Fund of the Church.

NOW, THEREFORE, BE IT RESOLVED by the Congregation of Christ’s Evangelical Lutheran Church of Oreland, Pennsylvania, that the following funds are hereby continued:

A.     An Endowment Fund (E-Fund) which shall receive gifts as described above which shall be used in accordance with the rules set forth in this Resolution to enhance the mission of Christ’s congregation.

B.   A Memorial Fund (M-Fund) which shall receive gifts as described above which shall be used in accordance with the rules set forth in this Resolution to enhance the mission of Christ’s congregation.

C.  An Endowment and Memorial Committee (hereinafter “the Committee”) which shall continue to operate in accordance with rules set forth below and shall be the custodian of the Endowment Fund and of the Memorial Fund.

D.  Any amendment to this Resolution or to the Plan of Operation, A., The Committee, set forth below, must be approved by a two-thirds vote of the members present constituting a quorum at a Congregation Meeting.

B8.02           PLAN OF OPERATION

A.  The Committee

1.   The Committee shall consist of five voting members, all of whom shall be voting members of Christ’s congregation. All members of the Committee shall be elected by the Congregation. The term of each member shall be three (3) years, except that members may be elected for a term of two (2) years or one (1) year if necessary to avoid many members’ terms expiring in the same year. Each member shall serve no more than two (2) consecutive three (3) year terms. After a lapse of one (1) year, former members of the Committee may be re-elected. The senior pastor and the president or vice-president of the Congregation Council shall be non-voting members of the Committee.

2.   At each annual election, the congregation shall elect the necessary number of members. Names of nominees for the committee shall be provided by the Nominating Committee. In the event of a vacancy on the Committee, the Congregation Council shall fill the vacancy by appointment for the balance of the year. At the next annual meeting of the congregation, a member shall be elected to fulfill the term of the vacancy.

3.   The Committee shall meet at least quarterly, but more frequently if deemed to be in the best interest of the Funds.

4.   A quorum of the Committee shall consist of four (4) voting members. A majority of those present and voting shall carry any motion or resolution.

5.   The Committee shall elect from its membership a chairperson and a recording secretary. The chairperson, or the member designated by the chairperson, shall preside at all committee meetings.

6.   The recording secretary shall maintain complete and accurate minutes of all meetings of the Committee, and shall supply a copy thereof to each member of the Committee and to the Congregation Council. Each member of the Committee shall keep a complete copy of the minutes to be delivered to his or her successor.

7.   The books of account for the Funds shall be audited annually by a certified public accountant or other appropriate person who is not a member of the Committee.

8.   The Committee shall report at least quarterly to the Congregation Council, and at each annual    meeting of the congregation shall render a full and complete audited account of the administration of the Endowment and Memorial Funds for the preceding year. The congregation treasurer shall provide a report of the funds to the members of the Committee each month so that they may monitor the Fund’s transactions.

9.   The Committee may request other members of the congregation to serve as advisory members and, at the expense of the appropriate Fund, may provide for such professional counseling on          investments or legal matters as it deems to be in the best interest of the Funds. Outside services or agreements for any fiduciary relationship shall be valid only if approved by Congregation Council

10. Each of the gifts which are collectively referred to as “gifts” in the Resolution above (examples include bequests, legacies, trusts, annuities, life insurance, and the transfer of assets), shall be reviewed by the Committee before it is officially accepted. After its review, the Committee shall recommend action to the Congregation Council including whether to accept the gift and whether the gift should or should not be placed into either the Endowment Fund or the Memorial Fund. When a gift is received with a special purpose as documented by the donor (“special-purpose gift”) and that purpose is in accordance with the policies and mission of the Church, the Committee shall recommend the gift be used as directed by the donor. With respect to a special-purpose gift, the Congregation Council shall make the final decision about acceptance of the gift. When the gift is not accompanied by directions for the purpose of the gift from the donor or it is simply given for the Church’s use or mission (“unrestricted gift”), the Committee shall recommend the gift be placed into the Endowment Fund. With respect to an unrestricted gift, the Congregation Council shall accept the Committee’s recommendation for disposition of the gift, unless extraordinary circumstances exist, in which case the Congregation Council can make a different recommendation as to the disposition of the gift and the same can be accomplished only with the approval of a two-thirds vote of the members present constituting a quorum at a Congregation meeting.

11. Members of the Committee shall not be liable for any losses which may be incurred upon the investments of the assets of the Funds except to the extent such losses shall have been caused by bad faith or gross negligence. Each member shall be liable only for his or her own bad faith or gross negligence, and shall not be liable for the acts or omissions of any other member. No member shall engage in any self-dealing or transaction with the Funds in which the member has direct or indirect financial interest, and each member shall at all times refrain from any conduct in which his or her financial interests would conflict with the interests of the Fund.

12. It shall be the responsibility of the Committee to publicize the giving opportunities presented by the E- and M-Funds so as to encourage members of the congregation to make such gifts.

13. In the event that Christ’s Evangelical Lutheran Church of Oreland ceases to exist, transfer of all funds and investments shall be at the discretion of the Congregation Council in conformity with the approved congregation constitution and in consultation with the bishop of the synod to which the congregation belongs at the time, and in consultation with the ELCA, if such is deemed necessary.

The bylaws of The Constitution of Christ’s Evangelical Lutheran Church of Oreland are amended to read as follows:

Chapter 8, Paragraph B8.02, Section B, Endowment Fund Operating Procedures

B.  Endowment Fund Operating Procedures

1.   All assets of the Endowment Fund (E-Fund) shall be held in the name of Christ’s Evangelical Lutheran Church Endowment Fund.

2.   The E-Fund assets shall be invested and permitted to increase in value until the Committee recommends that income generated by the fund may be expended. Income from the E-Fund may be distributed annually or at such other times as are deemed necessary or appropriate by the Committee.

3.   The investment objective of the E-Fund shall be to provide income from the principal of the E-Fund to enhance the mission of Christ’s congregation.

4.   The investment vehicles for the E-Fund shall be as follows:

a.       FDIC insured Checking or Savings Accounts

b.      Money Market Funds

c.       Certificates of Deposit

d.      United States Government Obligations

e.   United States Government Backed Securities

5.   Although the Committee shall manage the E-Fund assets in total, it shall maintain separate records to identify the value of (a) the principal amount in the E-Fund, and (b) the income earned from Investments of the E-Fund.

6.   Any proposed changes to the investment vehicles described in paragraph 4 shall be recommended by the Committee to the Congregation Council for its review and approval. Each quarter the Committee shall provide a statement of the total investments in the E-Fund to the Congregation Council.

7.   The Committee shall at least annually (no later than January 31) recommend to the Congregation Council the amount of income earned from Investments of the E-Fund which shall be made available for disbursement from the E-Fund. All income earned from Investments of the E-Fund shall be included in the disbursement amount.

8.   After review and approval by the Congregation Council, the annual distribution amount from the E-Fund shall be allocated in the following manner:

a.       25% for outreach to the local community or Synod ministries

b.      25% for outreach to global or ELCA church-wide ministries

c.       25% for extraordinary programs/capital improvements or other

d.      25% to be added to the principal amount of the E-Fund for continued growth

e.   Only if special circumstances exist, the Committee may recommend and the Congregation Council may approve that a specific exception be made to the allocation percentages defined in 8a, 8b or 8c for a given year.

9.   Upon approval by Congregation Council of the procedure described in paragraph 8 to allocate the annual distribution amount from the E-Fund, income previously earned from investments but not yet distributed from the E-Fund shall be allocated in the same manner as defined in 8a, 8b, 8c and 8d of paragraph 8.

10. Income distributions that have been allocated from the E-Fund to the three (3) Mission categories shall be invested in short-term, interest-bearing, readily liquid securities to be available for expenditure when approved by the Congregation Council.

11. All requests for the expenditure of the funds which are held in the three (3) Mission categories (a,b,c) of the E-Fund shall be submitted to the Committee using the “Endowment Fund Application Form” described in Section D, Appendix to the Endowment Fund and Memorial Fund Operating Procedures. The Committee shall decide whether or not to recommend an expenditure to the Congregation Council. No expenditure shall be made until approval of same by Council.

12. The Committee and Church Treasurer shall maintain account records for the total E-Fund earned income which has been made available for disbursement and has not yet been expended for each of the three (3) Mission categories specified in paragraph 8. A report of the balances in each of these accounts shall be provided monthly to Congregation Council and included in the Annual Congregation Report.

13. Assets of the E-Fund may only be expended beyond the guidelines described in the preceding paragraphs in an emergency which cannot be met with the use of other church funds, and same can be accomplished only with the approval of a two-thirds vote of the members present constituting a quorum at a Congregation meeting.

14. Short-term loans from the E-Fund may be approved by a majority vote of the Congregation Council but in no event shall any such loan exceed one year in duration. Any such loan shall bear interest at a rate approved by the Congregation Council and the current earnings of the E-Fund shall be a guide to Council in fixing the interest rate on the loan. No such loan shall exceed $10,000 or ten percent of the E-Fund, whichever is larger.

15. If gifts are offered to the Church that fall outside of the investment guidelines for the E-Fund described in paragraph 4, the Committee shall review such gifts. After review, the Committee shall recommend to Congregation Council a course of action regarding the acceptance and administration of these gifts. Only upon approval by Congregation Council shall such gifts be accepted.

16. There may be occasions when special gifts are provided to the Church with specific instructions from the donor governing their purpose and use. This instruction could be a proposed letter of agreement from the donor, or documentation from the donor’s estate. In either case, the Committee shall review these gifts and recommend to Congregation Council a course of action regarding the acceptance and administration of these gifts, including the option of establishing a separate E-Fund for these gifts. Only upon approval by Congregation Council shall such gifts be accepted or a new E-Fund be established. If approved, regulations governing the use of these gifts shall be entered into the minutes of the congregation as a continuing resolution.

17. Amendments can be made to these Operating Procedures of the E-Fund by a majority vote of the Congregation Council after which any such amendment shall be promptly communicated to the Congregation.

The bylaws of The Constitution of Christ’s Evangelical Lutheran Church of Oreland are amended to read as follows:

Chapter 8, Paragraph B8.02, Section C, Memorial Fund Operating Procedures

C.  Memorial Fund Operating Procedures

1.      All assets of the Memorial Fund (M-Fund) shall be held in the name of Christ’s Evangelical Lutheran Church Memorial Fund.

2.   All memorial funds existing and maintained by the Church at the time of the adoption of this resolution shall become a part of the Memorial Fund. Further, any existing memorial funds which have a specific purpose designated for the use of said funds shall continue to be used for said specific purpose or purposes utilizing the name of the person or family for which the Memorial Fund was created and established. However, the continued operation of any of these memorial funds shall be subject to the Section C, Memorial Fund Operating Procedures.

3.   Subject to the operating procedures, both principal and income may be expended by the Committee from the Memorial Fund, including any individually named Memorial Fund or the Unrestricted Memorial Fund.

4.   The Committee shall inform the congregation of the purpose of the M-Fund and the opportunity that is available to all persons who wish to honor the memory of an individual by way of a gift to the Church’s M-Fund.

5.   Upon receipt by the Church of a new gift in memory or honor of an individual, a memorial fund in that person’s name shall be established and then administered in the following manner:

a.   No (newly established) individual memorial fund shall continue in existence beyond a period of one year unless the gift amount received by the Church is $500 or more. Any individual memorial fund which has received gifts in an amount less than $500 (and one year has passed since the initial gift) shall be transferred to the unrestricted account of the M-Fund. At the time of this transfer, the Committee shall advise the family of the individual being honored that this has occurred.

b.   For any new memorial fund which receives gifts of at least $500, the family of the person being recognized shall be contacted by the Committee and be given information about the options for the use of the funds. The expressed wishes of the family shall be reviewed by the Committee and communicated to the Congregation Council with the recommendation for use of the funds. If no expressed wishes are received from the family, the Committee shall send a letter to them requesting that a recommendation be made concerning the use of the funds. In the event that no reply is received within thirty (30) days of the date of said letter and one year has passed since the initial gift, the Committee shall have authorization to transfer said funds into either the unrestricted account of the M-Fund or the assets of the E-Fund in accordance with the rules set forth in this Resolution.

c.   Consistent with a previous decision by the Congregation Council, a plaque or other form of visible recognition in or on the church property will be considered only for contributions of $50,000 or more to an individual memorial fund.

6.   All requests for the expenditure or transfer of any memorial funds (whether in a designated name or in the unrestricted M-Fund) shall be submitted to the Committee using the “Memorial Fund Application Form” described in Section D, Appendix to the Endowment Fund and Memorial Fund Operating Procedures. All requests shall be reviewed and evaluated by the Committee. Thereafter, the Committee shall make a recommendation to the Congregation Council concerning said use. No funds shall be expended or transferred without Council approval.

7.   The M-Fund assets shall be invested in short-term, principal-protected, readily liquid securities to be available for expenditure or transfer as approved by the Congregation Council. If changes to these investment vehicles are desired, the Committee shall recommend its proposal to the Congregation Council for its review and approval. Each quarter the Committee shall provide a statement of the total investments in the M-Fund to the Congregation Council.

8.   Amendments can be made to these Operating Procedures of the M-Fund by a majority vote of the Congregation Council after which any such amendment shall be promptly communicated to the Congregation.

The bylaws of The Constitution of Christ’s Evangelical Lutheran Church of Oreland are amended to read as follows:

Chapter 8, Paragraph B8.02, Section D. Appendix to the Endowment Fund and Memorial Fund Operating Procedures

D.  Appendix to the Endowment Fund and Memorial Fund Operating Procedures

Exhibit 1 – Endowment Fund Application Form

Exhibit 2 – Memorial Fund Application Form

Appendix

Exhibit 1

Christ’s Lutheran Church

Oreland, PA

Endowment Fund Application Form

The Endowment Fund of Christ’s Lutheran Church supports special missions that would not necessarily be funded by the general budget of the Congregation. Members seeking support for mission focused projects should complete this application and submit it to the Endowment & Memorial (E&M) Committee, Christ’s Lutheran Church, 700 E. Pennsylvania Avenue, Oreland, PA 19075.

To assist the E&M Committee in reviewing the request, applicants may be requested to attend a regularly scheduled meeting of the Committee to explain more fully the application and to answer any Committee member’s questions.

Applicant’s Name:                                                        Date:                                                               

Church Committee Endorsing Application (if applicable):                                                                      

Phone Number:                                                email:                                                                           

Proposed Project:

1.      For which Mission Category are funds being requested

a.       Outreach to the local community or Synod ministries                                                                 

b.      Outreach to global and ELCA church-wide ministries                                                               

c.   Extraordinary programs/capital improvements or other ministry initiatives                                   

2.      What is the amount being requested (provide supporting documentation)?

3.      Describe the proposed project or use of the Endowment funds.

4.      How will this expenditure from the E-Fund support and/or benefit Christ’s Lutheran’s mission?

Endowment Fund Application Form-Page 2

5.      What is the time frame for completion of the requested project?

6.      If expenditure of funds includes the purchase of products or services, what competitive bids have been obtained and evaluated?

7.      Have any other fundraising or financial resources been considered to support this project?

a.       If yes, what were they?

b.      If yes, how much has been collected/raised/received?

c.       If no, would fundraising be an option for expenditures?

8.      Has this request been submitted and approved in prior years?

a.       If yes, for how many years?

b.      Should this expense be considered in Christ’s Lutheran’s operating budget for subsequent years?

9.      Additional information or comments:

FOR COMMITTEE USE ONLY

Date received by the E&M committee:

Approved/Submitted to Council:

Action:

Follow up:

Appendix

Exhibit 2

Christ’s Lutheran Church

Oreland, PA

Memorial Fund Application Form

The Memorial Fund of Christ’s Lutheran Church supports special missions that would not necessarily be funded by the general budget of the Congregation. Members seeking support for mission focused projects should complete this application and submit it to the Endowment & Memorial (E&M) Committee, Christ’s Lutheran Church, 700 E. Pennsylvania Avenue, Oreland, PA 19075.

To assist the E&M Committee in reviewing the request, applicants may be requested to attend a regularly scheduled meeting of the Committee to explain more fully the application and to answer any Committee member’s questions.

Applicant Name:                                                                       Date:                                                   

Church Committee Endorsing the Application (if applicable):                                                                 

Phone Number:                                                      email:                                                                     

Proposed Project:

1.      What is the amount being requested (provide supporting documentation)?

2.      Describe the proposed project or use of the Memorial funds

3.      How will this expenditure from the M-Fund support and/or benefit Christ’s Lutheran’s mission?

4.      What is the time frame for completion of the requested project?

Memorial Fund Application Form – Page 2

5.      If expenditure of funds includes the purchase of products or services, what competitive bids have been obtained and evaluated?

6.      Have any other fundraising or financial resources been considered to support this project?

a.       If yes, what were they?

b.      If yes, how much has been collected/raised/received?

c.       If no, would fundraising be an option for expenditures?

7.      Has this request been submitted and approved in prior years?

a.       If yes, for how many years?

b.      Should this expense be considered in Christ’s Lutheran’s operating budget for subsequent years?

8.      Additional information or comments:

FOR COMMITTEE USE ONLY

Date received by the E&M committee:

Approved/Submitted to Council:

Action:

Follow up: