Stewartstown United Methodist Church
Stewartstown, Pennsylvania
ENDOWMENT FUND AGREEMENT
ARTICLE I. PURPOSE
A. The Permanent Endowment Fund of Stewartstown United Methodist Church, hereinafter referred to in the document as
the "Endowment Fund," is established for the purpose of providing members and friends the opportunity to make charitable
gifts to the Church that will become a permanent endowment of financial support and a living memorial.
The Endowment Fund is separate from the Annual Operating Budget of the Church. It is not intended to be a substitute for the
weekly giving of tithes, gifts and offerings to God. Instead it is another means by which the faithful may express their gratitude to God
and strengthen the church’s ministries. Planned giving through the Endowment Fund can provide significant and needed resources for
fulfilling the church’s ministry and mission in a way which might not otherwise have been possible.
The Endowment Fund is a permanent fund, the principal of which shall be held in perpetuity, except as provided for hereinafter
or as specified in writing at the time of the gift by persons making gifts and bequests to the Endowment Fund.
B. This Agreement establishes:
1. The Endowment Fund of Stewartstown United Methodist Church
2. The Permanent Endowment Fund Committee (reference paragraph 2533, The Book of Discipline - 2008)
3. The policies, guidelines and organizational relationships relative to the Endowment Fund.
ARTICLE II. SOURCES OF FUNDING
The sources of funding for the Endowment Fund shall be:
A. Endowment assets now held by Stewartstown United Methodist Church (hereinafter sometimes referred to as "the Church")
shall become part of the corpus of the Endowment Fund.
B. Unrestricted or restricted memorial gifts, honor gifts, lifetime gifts, bequests by will, and other gifts, which are received from
members and friends of the Church, will be added to the Endowment Fund unless requested otherwise by the donor at the time
of the gift. These gifts and bequests are subject to acceptance or rejection by the Permanent Endowment Fund Committee of the
Church (reference paragraphs 246, 247, 248, 2528.3 and 2532.5, The Book of Discipline - 2008). Once accepted, all gifts are wholly
owned, controlled and managed by the Permanent Endowment Fund Committee, subject to the provisions outlined below.
ARTICLE III. PERMANENT ENDOWMENT FUND COMMITTEE
A. The Permanent Endowment Fund Committee, a standing committee, shall be composed of the persons then holding the following
positions in Stewartstown United Methodist Church:
1. Pastor
2. Church Treasurer
3. Representatives of the following administrative and programmatic units:
a. Church Council
b. Board of Trustees
c. Committee on Finance
d. Missions Commission
4. Up to five (5) Church Members-at-Large recommended by the Permanent Endowment Fund Committee, nominated by
the Committee on Lay Leadership and elected by the Church Conference. Members-at-large shall serve a five-year
term and be eligible for election for a maximum of two (2) consecutive terms.
B. The Permanent Endowment Fund Committee shall be chaired by the person selected by the Committee itself. The chairperson
shall serve a one-year calendar term and be eligible for a maximum of three (3) consecutive one-year terms. The Chairperson
shall be eligible for re-election after one (1) year out of office.
C. The Permanent Endowment Fund Committee shall be amenable to the Church Council and work in cooperation with the Board of
Trustees.
D. The Permanent Endowment Fund Committee shall meet at least quarterly for program and promotional review.
ARTICLE IV. DUTIES AND RESPONSIBILITIES OF THE PERMANENT ENDOWMENT FUND COMMITTEE
In addition to the other duties and responsibilities set forth in this document,
A. The Permanent Endowment Fund Committee shall accept or reject gifts and bequests to the Endowment Fund with regard to
their compliance to the exempt status of the church.
B. The Church Secretary/Administrative Assistant or Pastor, as determined by the Pastor, shall write the acknowledgment of
receipt of accepted gifts and bequests, and the Pastor and Permanent Endowment Fund Committee Chairperson shall both sign
the letter. The Permanent Endowment Fund Committee Secretary shall be responsible to maintain a record of each gift and bequest
included in the Endowment Fund and provide copies to the Church Secretary/Administrative Assistant for safekeeping.
C. Permanently note any restrictions on gifts and bequests to the Endowment Fund.
D. Be the fiscal agents for the Endowment Fund.
E. Maintain a complete accounting of all investments, including investment vehicles used from time to time, the principal of the
fund, capital gains, earned income and dividends, distributions and expenses.
F. Report the current state of the Endowment Fund to the Church Council quarterly, to the Church Conference annually, and to
the Board of Trustees when requested. This reporting should include a statement of any distributions made from the
Endowment Fund, and of the amount of money currently available for distribution.
G. Promote and advertise the Endowment Fund frequently and consistently throughout the Stewartstown United Methodist Church
and its membership. Costs for this activity may be charged to the Endowment Fund and paid out of current income.
ARTICLE V. INVESTMENT MANAGEMENT OF ENDOWMENT ASSETS
A. Responsibility for investment management of Endowment Fund assets shall rest with the Permanent Endowment Fund
Committee or its legal successor (Ref. paragraph 2533, The Book of Discipline, 2008). The principal of the Endowment Fund
and any undistributed income shall be invested in the manner deemed most advisable by said Permanent Endowment Fund Committee.
B. The Permanent Endowment Fund Committee may acquire the services of a professional to manage the investments upon
approval of the Church Council.
ARTICLE VI. INVESTMENT OBJECTIVES
Investment objectives are that funds be invested as follows:
A. Conservation of principal for the effective maintenance of purchasing power
B. Regular income at a reasonable rate
C. Income and growth of principal should both keep up with inflation or better
D. In accordance with the Social Principles of The United Methodist Church
E. Funds should be managed and held in accordance with their identified and intended purposes
ARTICLE VII. GIFTS TO THE FUND
A. Gifts to the Endowment Fund may be classified as "unrestricted" and then assigned to one of the following categories:
1. Ministry Outreach (For missions in and beyond the local church and community. Examples might include, but not be limited
to, assistance to persons in need, support of national and international missionaries, as seed money to encourage additional
gifts to mission projects, etc.)
2. Building Fund (Purchase or construction of new church property, additions to or major modifications, repairs, and
maintenance to existing property and grounds.)
3. General Ministry Fund (For special needs and ministries as determined by the Church Council. Examples might include, but
not be limited to, extended ministries for which funds would not otherwise be available through the regular church budget,
music ministry, purchase of new equipment, scholarship assistance for church members to attend college, seminary, work
camps, or educational seminars and conferences, etc.)
B. Gifts that are classified as “restricted” and meet the requirements of the Policy for Gifts to the Endowment Fund, as stated and
revised from time to time by the Church Council, shall be listed as "restricted" and be placed in an appropriate account. The
following restricted funds were already in existence at the time of the execution of this document:
1. Ellen Matthews Brown Drapery Fund
2. Catherine Dixon Camp Fund
3. Liebau Scholarship Trust Fund
4. Ross & Geneva Trout Scholarship Fund
5. Gibbs Mission Scholarship
6. Liebau Seminary Scholarship Fund
7. Trout College Scholarship Fund
8. Trout Current Expense Fund
9. Mission Scholarship Fund
10. Audio Visual Fund
11. Handicapped Camp Fund
12. Prayer Garden Fund
C. Income and principal shall be kept separate in each account. This will enable income to build to a set amount for a specific
project if so desired.
ARTICLE VIII. REQUESTS FOR DISTRIBUTION OF INCOME AND DISTRIBUTION OF INCOME
A. The Permanent Endowment Fund Committee shall see that restricted income of the Endowment Fund is distributed as directed
by the donors at the time of their gift, or as Proposals for use of income may be submitted to the Permanent Endowment Fund
Committee, in writing, by any member or organization within the Church.
B. If the use of the gift is unrestricted, the income shall be approved by the Church Council upon recommendation of the
Permanent Endowment Fund Committee.
C. Proposals for use of income may be submitted to the Permanent Endowment Fund Committee, in writing, by any member or
organization within the Church.
ARTICLE IX. USE OF PRINCIPAL
Although the Endowment Fund is intended primarily as a permanent fund to be held in perpetuity, principal may be used from the Endowment Fund under very justifiable circumstances. Before any Endowment Fund principal is used or encumbered, there must be compliance with the process specified in the two immediately-following paragraphs (Article X and Article XI).
ARTICLE X. RECOMMENDATIONS FOR USE OF PRINCIPAL
Recommendations for use of principal from the Endowment Fund must be initiated by two-thirds (2/3) of the total membership of the Permanent Endowment Fund Committee. Any such recommendation initiated by said committee shall be submitted to the Church Council for consideration. If two-thirds (2/3) of the total membership of the Church Council agree that principal should be used from the Fund, the recommendation shall be submitted to an authorized and properly called Church Conference for action (reference paragraph 248, The Book of Discipline -2008).
ARTICLE XI. APPROVAL OF USE OF PRINCIPAL
Upon becoming aware of a recommendation from the Church Council for use of principal, the Pastor shall request the District Superintendent to chair a Church Conference to consider the recommendation. A favorable vote by two-thirds (2/3) of the members present and voting at the Church Conference shall be required to approve such a recommendation.
ARTICLE XII. DISBURSEMENTS
All disbursements of monies from the Endowment Fund shall be distributed by the Treasurer of Stewartstown United Methodist Church.
ARTICLE XIV. AUDIT OF RECORDS
The Committee on Finance of the Church (reference paragraph 258.4c, The Book of Discipline 2008) shall make provisions for an annual audit of the financial records of the Fund.
ARTICLE XV. CHANGES TO THIS DOCUMENT
Changes to this document may be made at a duly authorized Church Conference of Stewartstown United Methodist Church, upon prior concurrence of two-thirds (2/3) of the total membership of the Church Council with a prior recommendation of two-thirds (2/3) vote of total membership from the Permanent Endowment Fund Committee. A favorable vote by two -thirds (2/3) of the members present and voting at the Church Conference shall be required to approve changes to this document.
This Agreement was approved during a duly authorized Church Conference at Stewartstown United Methodist Church, Stewartstown, Pennsylvania on July 20, 2010.
_____________________________ ______________________________
Pastor Secretary, Church Conference
Stewartstown United Methodist Church Stewartstown United Methodist Church
_____________________________ _______________________________
__________ District Superintendent Chairperson
Central Pennsylvania Conference Church Council
The United Methodist Church Stewartstown United Methodist Church