RULES of the Board of Directors And

RULES of the Board of Directors and Policies of the Corporation

Budget and Finance

LCM-BOD-11/00-51 To require a minimum balance be maintained in unrestricted unallocated reserves equivalent to 1/3 of the annual budget of Local Church Ministries. The fund should be accounted for separately from the balance of unrestricted unallocated reserves and adjusted on an annual basis according to the budget.

LCM-BOD-11/00-57 LCM shall invest its funds according to Alternative 2 - UCF Common Investment Funds, until such time as the Board deems it necessary to alter this arrangement. The details for the investments are to be found in documentation AMemorandum@ to the Covenanted Ministries of the United Church of Christ, from Joan F. Brannick and Donald G. Hart, dated October 31, 2000.

LCM-BOD-11/01-40 To raise the stock allocation limit of Local Church Ministries investments to 70%.

Background: The stock allocation of Local Church Ministries investments is at present 35-65% of the total portfolio. The investment manager may change the stock and bond percent allocations within the permitted range without the Investment Committee consent. George Doty, Chief Investment Officer of the Pension Boards United Church of Christ, has recommended that Local Church Ministries raise the upper stock allocation percentage to 70%. Currently stocks represent about 64% of our total portfolio and George Doty’s outlook for 2002 suggests that a modest increase over this would be productive.

Policies and Guidelines - Endowment Gifts LCM-BOD-04/03-5 To adopt the following guidelines and policies, to address the afore-stated needs for the on going support of the mandates of Local Church Ministries:

Restricted Gifts: All gifts received and accepted by Local Church Ministries which are restricted as to a specific purpose by the donor pursuant to written instructions by the donor as to principal, interest or both, shall be held, managed and used strictly in accordance with such instructions. If conditions change such that the original purpose of the gift can no longer be addressed, staff may recommend to the Executive Committee an appropriate alternative purpose for the gift with the further concurrence of the courts.

(a) Those gifts received with a restriction on principal, but an unrestricted use of income shall be invested and managed in accordance with the Total Return

1 Spending Policy previously adopted by the Board of Directors of Local Church Ministries.

Unrestricted Gifts: Gifts received with no restrictions would be determined and administered as follows:

(a) Any gifts that individually exceed an amount of $10,000 in a given year shall be held as an endowment, keeping the principal intact and expending income only as hereafter stated. Unless otherwise stipulated by the Executive Committee, these funds shall be managed in accordance with the Total Return Spending Policy previously adopted by the Board of Directors of Local Church Ministries. Such funds shall be included in the unrestricted pool when calculating the budget reserve requirement as previously established by the Board of Directors of Local Church Ministries and be reported as funds functioning as endowments.

Principal may be used to support the annual budget only upon approval of the Executive Committee with final approval by the Board of Directors of Local Church Ministries.

General: (a) All restricted gifts or funds functioning as endowments are to be invested in accounts named for the donor(s) within Local Church Ministries Common Investment Fund at the United Church Foundation, or through any other investment vehicle approved by the Investment Committee of the Board of Directors of Local Church Ministries with final approval by the Board of Directors of Local Church Ministries.

(b) The Board of Directors requests that staff acknowledge all gifts on their behalf.

LCM-BOD-10/03-25 To approve the adoption of a “best practices” approach in all areas of financial policy and procedure. The Sarbanes-Oxley Act and other official documents and/or information should be used as appropriate. In addition, policies and procedures should be developed in conjunction with the other Covenanted Ministries and the Executive Council while encouraging dialogue with the Affiliated and Associated Ministries.

LCM-BOD-10/03- To adopt the following resolution: RESOLVED: That the Board of Church Extension of the Christian Church, Disciples of Christ, located in Indianapolis, Indiana, is hereby designated a depository in which the funds of this organization may be invested, and that any two of the following officers, Executive Minister, Treasurer, Secretary, Assistant Treasurer, and Assistant Secretary, are hereby authorized to act as the sole and exclusive agents of this organization in dealing with all investment matters between this organization and the Board of Church Extension; and that the actions of these agents shall be valid and binding on this

2 organization; and that this resolution shall continue in force until written notice of its rescission or modification has been received by the Board of Church Extension.

LCM-BOD-04/06-33 To adopt the following policy for Church Building Revolving Loan Fund: The Church Building Revolving Loan Fund’s liquid assets shall be invested to maximize and balance safety, liquidity and income and to minimize market risk. The funds are identified as the current value of the original $1,000,000 corpus will be invested in the United Church Foundation Growth Fund. Excess funds arising from unmet loan demand and which are anticipated to be borrowed by Partners in Building within thirty- six months will be invested as follows:

Amount sufficient to cover loan demand within the next 36 months: Cash and/or Money Market Account

Excess funds needed to meet loan demand within the next 36 months: Up to 25% of the investable amount in: Cornerstone Fund Investments and/or Bank Certificates of Deposit Preferred Banks being Key Bank and Shorebank

Remainder of investable funds: U.S. Treasury Notes: Laddered six month maturities to be rolled over at maturity unless funds are needed for loans Purchasable through Key Bank, Shorebank or UCF Excess funds not anticipated as being required within the next thirty-six months will be invested in either the United Church Foundation Balanced Fund or a similar appropriate investment vehicle

LCM-BOD-10/06-25 To adopt a policy that provides a one (1) year notice to the United Church of Christ Cornerstone Fund, Inc. Board of Directors if Local Church Ministries takes an action to discontinue providing collateral in support of the United Church of Christ Cornerstone Fund line of credit.

LCM-BOD-04/07-13 VOTED: To incorporate the Church Building revolving Loan Fund (Fund) as an Ohio nonprofit corporation to be known as Local Church Ministries Church Building & Loan Fund; and to authorize the officers and staff of Local Church Ministries, with the advice of counsel, to prepare, file and adopt all necessary documents for such corporation and do all things deemed by them to be necessary in conjunction with incorporating such corporation, including but not limited to, have the Nominating Committee of Local Church Ministries nominate candidates for the elected members of the Board of Directors, seeing that the elected members of the Board are elected by the Local Church Ministries Board of Directors and transferring the assets and liabilities of the Fund to such corporation.

3 LCM-BOD-10/07-49 VOTED: To adopt a policy that the Chair of the Budget & Finance Committee regularly reviews and initials the expenditures of the Executive Minister.

Audit

LCM-BOD-11/00-54 That the annual audit of LCM be conducted in the most cost efficient and effective manner possible and that it be part of a combined report along with the activities of the Executive Council and other covenanted ministries.

Executive Committee

Review and Adoption of Agenda The Chair announced that, according to the decision of the Executive Committee, items of new business to come before the Board will be sent to the appropriate committee of the Board. Business can be dealt with by committee report or placed in the agenda at Item 14. Verbal description of new business may be given at this time and then in written format to the committee to which it was assigned.

LCM-BOD-11/02- To have the Local Church Ministries Executive Committee initiate a long term strategy related to anti-racism and related issues training on an annual basis for the Local Church Ministries Board of Directors.

LCM-BOD-04/07-15 VOTED: To ratify the Local Church Ministries Bylaws as amended.

LCM-BOD-04/07-45 VOTED: To adopt the Safe Church Policy Concerning Abuse Prevention as revised in March, 2007.

LCM-BOD-10/07-61 VOTED: To approve that the United Church of Christ “Officer of the Church Evaluation” be conducted on a biannual basis.

Governance (Formally Nomination Committee)

LCM-BOD-4/01-25 To recommend to the Local Church Ministries Board of Directors that the Chair and the Vice-chair will be elected at the spring meeting of the Local Church Ministries Board of Directors, preceding Synod, to take effect following General Synod.

LCM-BOD-04/02-37

4 To use the following procedures and criteria for the election of committee facilitators, and committee composition: 1. The Criteria for Committee Composition - The Nominating Committee will seek to: a. Apportion to the different committees of the Board the gifts, talents and interests of theBoard members. Information for committee composition will be taken from the General Synod Nomination Form and the supplemental form the Nominating Committee of Local Church Ministries Board, and written input from other sources.

b. Broaden the ministry of the members and the committee to facilitate effective interpretation of Local Church Ministries to the whole church.

c. Meet the special skills needed for particular committees and the general needs of the work of the committees, as well as the work of the Board of Directors and other covenanted and ecumenical partners.

d. Fulfill the mandate to balance the ethnic, gender, lay/ordained, age, and regional attributes of each committee as specified in the By-laws. (The Nominating Committee emphasized that the use of letters in this listing does not indicate order of priority.)

2. Ministry Team Committees a. The Ministry Team Committees will be nominated at a special meeting of the Nominating Committee the day following Synod.

b. The Ministry Team Committees will be elected at the fall meeting following General Synod. (General Synod meets in the odd numbered year).

c. Written requests for change to a committee will be made to and considered by the Nominating Committee. Requests for change will be sent to the chairperson of the Nominating Committee. The Nominating Committee will seek to balance the needs of the corporate life of the Board with the preferences of the individual.

d. Requests for change must be ratified by the Board.

e. The normal term of service for a Ministry Team Committee will be six years.

3. Standing and Other Committees a. The Standing or Other Committees will be nominated at a special meeting of the Nominating Committee the day following Synod.

b. The Standing or Other Committees will be elected at the fall meeting following General Synod. (General Synod meets in the odd numbered year).

5 c. Written requests for change to a committee will be made to and considered by the Nominating Committee. Requests for change will be sent to the chairperson of the Nominating Committee. The Nominating Committee will seek to balance the needs of the corporate life of the Board, with the preferences of the individual.

d. Requests for change must be ratified by the Board.

e. The normal term of service for a Standing or Other Committees will be a minimum of two years.

4. Election of Committee Chairpersons and Vice Chairpersons a. Committee chairpersons will function as facilitators.

b. Committee chairpersons will be elected at the fall meeting following General Synod. (General Synod meets in the odd-numbered year).

c. The nominees will serve as chairpersons pro tempore until the election at the fall meeting.

d. The committee chairperson will work with the appropriate staff to see that the work of the Board committee is implemented.

e. The normal term of service as a committee chair will be two-years.

f. The vice chairpersons will be elected by the committee, at the Fall Meeting following General Synod, to serve a two-year term, without the expectation that the vice chairpersons will assume the role of committee chairperson.

LCM-BOD-04/02-38 To use the following procedure for implementation of Article II, G, Local Church Ministries By-laws:

Procedure for implementation of Article II, G. “If any director fails to attend two meetings without communicated reason, the Board of Directors shall declare the office of such director vacant.”

1. The Local Church Ministries staff will monitor registration and attendance at each Board meeting. A list will be prepared for presentation to the Nominating Committee of those who are absent, including the reasons for absences that have been communicated.

2. The Nominating Committee will send a letter to any Board member who misses a meeting without communicated reason. A copy will also be sent to the member’s constituent body. The purpose of the letter will be to explain the bylaw concerning attendance and to encourage communication if there are meetings the member must miss.

6 3. If a member misses a second meeting without communicated reason, the Nominating Committee may recommend to the Board that they declare the position vacant and begin the process of filling it. A letter from the committee concerning the action of the Board will be sent to the Board member and the member’s constituent body and a process for filling the position would begin according to normal procedure.

4. If a Board member misses a meeting with communicated reason, the Nominating Committee shall discern whether to communicate with the Board member about the importance of attending meetings.

5. If a Board member misses a second meeting with reason, the committee may decide to communicate with the Board member and her/his constituent body to discern whether the Board member can effectively serve on the Board. Although the Board has no specific authority in these cases under the current bylaw, the member or its constituent body would be free to make decisions that would best serve all involved

LCM-BOD-11/02-42 To adopt the following procedure for the election of the Chair and the Vice Chair of the Board of Directors, Local Church Ministries. At the fall meeting preceding a Synod year, before the terms of the Chair and the Vice Chair are to expire, the Nominating Committee will be open to suggestions for the positions of Chair and Vice Chair. These suggestions will be made in written form with the advanced approval of the person being nominated. The forms need to be returned to the committee two months prior to the meeting of the Board at its Spring Meeting prior to General Synod. At the Spring Meeting the Nominating Committee will submit (according to mandate in the Bylaws) a slate of candidates to the Board.

The Nominating Committee will meet prior to the Spring Meeting of the Board to ensure the smooth flow of this process. Furthermore the Nominating Committee will provide a “job description” for the offices to be elected that will include not only the expectations of the office, but the time commitments as well.

LCM-BOD-10/04-30 To adopt the Conflict of Interest Policy as presented, and further, to request that each Board member and/or officer review the policy, sign the acknowledgement form attached to the policy and return the forms to the Treasurer of Local Church Ministries.

LCM-BOD -10/04-35 To affirm our commitment to the Hispanic Ministry Implementation process and assure: • an effective representation appointed from the Local Church Ministries Executive Office at the HMIT table, • an inclusive emphasis of HMIT goals in the programmatic priorities in Local Church Ministries, • the inclusion of an advocacy role in Local Church Ministries staff involvement in Conferences with Hispanic populations.

7 LCM-BOD-10/06-18 To resolve that any audio or video recording of meetings of the Board of Directors of Local Church Ministries, used for the transcription of Minutes of the Board meetings, will be destroyed following the affirmative vote of the Board’s approval of the Minutes of a stated meeting

LCM-BOD-10/06-45 To adopt the “Proposed Process for the Re-nomination and Re-election of an Executive Minister of Local Church Ministries (a Covenanted Ministry of the United Church of Christ).”

LCM-BOD-10/06-46 To adopt the “Safe Church Policy” for the Local Church Ministries Board of Directors and the Corporation so as to include all corporate activities.

LCM-BOD-04/07-31 VOTED: To add to the standing rules: That for the initial term of office of the Executive Minister of the Corporation, the Nominating Committee of the Board of Directors will prepare a slate for the Search Committee, said committee to be appointed by and from the Board of Directors in accordance with Article III C 2 d.

LCM-BOD-04/07-32 VOTED: To add to the standing rules: That though the Bylaws name a Chair and Vice Chairperson of the Board of Directors; the two shall be deemed to function, during and between Board meetings, as Co Chairs

LCM-BOD-10/07-48 VOTED: To be intentional in scheduling training sessions for new members related to the Committees on which they are being asked to serve.

Evangelism

LCM-BOD-11/01-39 To recommend that the Board of Directors adopt a policy of retaining leadership subsidies not issued to local churches through their respective Conference for future use for new leadership subsidies instead of returning such funds to unrestricted reserves. This will in effect create an additional pool for potential future leadership subsidies.

LCM-BOD-04/04-36 To approve the policy that new congregations receiving leadership subsidy include United Church of Christ in the public identification of their congregation.

LCM-BOD-04/07-18

8 VOTED: To change the name of the board designated and permanently restricted funds currently named the Leadership for New and Renewing Churches Endowment Fund(s) to read the New and Renewing Churches Endowment Fund(s).

Personnel

LCM-BOD-04/04-25 To work under the standing rule: When the Board discusses staff, the Board will do so in Executive Session.

LCM-BOD-10/07-62 VOTED: To approve that paragraph 1 on page 2 of the introductory section of the UCC Common Personnel Policies be revised to read as follows (with additions indicated in bold type):

The Covenanted Ministries of the United Church of Christ (CMUCC) is pleased to welcome you. This handbook sets forth the Common Personnel Policies and methods of work for the national staff personnel in Local Church Ministries, Wider Church Ministries, Office of General Ministries, and Justice and Witness Ministries. Note: Mission personnel are not subject to these policies and therefore, are guided by a separate set of policies and procedures through Global Ministries.

Daniel Hand Fund Annual Review Committee

LCM-BOD-04/05-7 To affirm the Policy for Distribution of the Daniel Hand Educational Fund for Colored People with the understanding that references made to the management of the fund by the American Missionary Association be changed to management of the fund by Local Church Ministries.

LCM-BOD-04/05-8 To adopt the Definition of “Education” as presented in the document so titled; and to adopt the document as an addendum to the aforementioned policy. Those institutions that promote the definition shall be considered as recipients of funds from the Daniel Hand Educational Fund for Colored People.

LCM-BOD-04/05-12 To establish a permanent “other” committee to be called the “Daniel Hand Fund Annual Review Committee,” to oversee and implement the policies affirmed with appropriate bylaw changes. Annual recommendations for distribution of income will be made to the full LCM Board of Directors based upon the reports received from the colleges and institutions. Subsequent funding and potential changes related to distribution of income will be recommended to the LCM Board of Directors.

9 LCM-BOD-04/05-13 To require annual reports from both the AMA colleges and universities and the non- academic institutions that receive funds from the Daniel Hand Educational Fund for Colored People. The reports are to provide detailed information related to the use of the Fund.

LCM-BOD-04/05-14 To accept for use the two evaluation forms “Daniel Hand Fund Annual Report Form- Academic Institutions” and “Daniel Hand Fund Annual Report Form – Non-Academic Institutions” for the annual evaluations subject to modification by the committee as needed.

LCM-BOD-04/05-15 To accept the draft of the document entitled, “Rationale for Using the Daniel Hand Educational Fund for Colored People for Establishing Schools in Local Churches,” as an example of potential uses for the Fund.

LCM-BOD-04/07-22 DANIEL HAND 10% SET ASIDE VOTED: WHEREAS, the Committee recognizes the financial instabilities of many AMA Colleges; and WHEREAS, these colleges are currently recipients of the Daniel Hand Fund; and WHEREAS, the Committee recognizes the rich legacy and history of the United Church of Christ’s relationship with these colleges; and WHEREAS, the Committee recognizes the increasing needs of these colleges to secure funds for scholarships (as evidenced in the requests made to Local Church Ministries in 2006 and 2007); and WHEREAS, the Committee has heard the report of the LCM Treasurer that it is feasible to “set aside” 10% of the annual 5% draw from the Daniel Hand Fund to adequately respond to requests for extraordinary needs;

BE IT RESOLVED that the LCM Board of Directors adopts as policy that 10% of the annual 5% draw from the Daniel Hand Fund be set aside for extraordinary requests. Further, that the Executive Minister be requested to speak with Collegium members to discuss and identify other funding sources to raise at least $1,000,000 of seed money for that “set aside” fund; further, that the “set aside” fund not be included in the calculation of the annual 5% draw; further that this fund not be used for a period of three years or until there is $500,000 in available funds, whichever comes first.

Worship and Education

LCM-BOD-04/07-20 VOTED: To authorize the transfer of $200,000 from the Hymnal Reserve 2020 Fund to a

10 Praise Song Book Development Fund for use in developing a praise song book and that the first $200,000 in sales is reimbursed to the Hymnal Reserve 2020 Fund.

Development Committee

LCM-BOD-04/07-51 VOTED: To affirm the central role of unified case development – across ministries and giving programs (individual giving, OCWM, planned giving, etc.) as a principle task moving forward in fundraising; and re-affirm the necessity of working more intentionally to integrate our fund development programs, at the governance and management level, operationally and strategically.

LCM-BOD-10/07-62 VOTED: To approve that paragraph 1 on page 2 of the introductory section of the UCC Common Personnel Policies be revised to read as follows (with additions indicated in bold type):

BOARD AND VOLUNTEER REIMBERSMENT POLICY Board members, former officers and volunteers are respected and appreciated contributors of the UCC. We have developed this travel policy to help ensure the good stewardship of financial and human resources. All travel, lodging and meal expenses should be made by making thoughtful decisions as to the nature, timing and extent of travel arrangements.

AIR TRAVEL

Air travel will be reimbursed for round trip airfare between the traveler’s home and the meeting location, or between the traveler’s departure location and the meeting location, whichever amount is less.

All air travel reservations should be made 30 days in advance, which will allow for the maximum booking discount.

Non-cash benefits that accrue to travelers, for example, frequent flier miles, bonus points and including but limited to promotional programs, are the property of the traveler.

11 Unused airline tickets submitted for reimbursement must be attached to the traveler’s expense report. The circumstances leading to the traveler’s travel cancellation must be clearly documented.

Air travel will be reimbursed at the lesser of:  The actual cost of airline tickets booked with the UCC designated travel agency. The agency is MTS Travel, 1-800-522-2687.  The actual cost of airline tickets booked directly with an airline, online or other secondary source.

TRAVEL BY GROUND (AUTOMOBILE/RAIL/BUS)

Travel by ground will be reimbursed at the lesser of:  The IRS published mileage rate of $0.500 cents per mile.  The actual cost of an economical vehicle rental, gas and insurance on the rental vehicle.  The actual cost of a rail ticket.  The actual cost of a bus ticket.  The cost of airfare, using the air travel reimbursement policy above.

GROUND TRANSPORTATION TO AND FROM THE SITE OF DEPARTURE

Ground transportation will be reimbursed at the lesser of:  Reasonable parking fees at the airport/rail station, if driving and parking one’s own vehicle.  Shuttle fare whenever shuttle service is available.

LODGING

Lodging costs are paid by Local Church Ministries. Charges for the traveler’s accommodations will be billed directly to Local Church Ministries. Reservations will typically be made for the nights equal to the number of meeting days plus one day, if necessary, to accommodate the meeting schedule and travel schedule, unless specifically defined otherwise in the meeting call.

Board members will be asked to reimburse Local Church Ministries for 50% of the cost of a double room charge if the member does not wish to share a room. Savings will result from sharing rooms, so members are asked to share a double room.

MEALS

During a meeting, most meals are planned and paid for by Local Church Ministries, and persons are expected to eat with the group. Meals not provided during travel will be reimbursed as provided below.

Meal costs during travel will be reimbursed at the lesser of:

12  Actual cost of breakfast or $10.00.  Actual cost of lunch or $15.00.  Actual cost of dinner or $25.00.

MISCELLANEOUS CHARGES

The following charges will be reimbursed as follows:  Reasonable gratuities for baggage handling, meal tips, etc.

The following charges are considered personal in nature and will not be reimbursed  Movie rental, personal telephone calls, alcoholic beverages, refreshments, maid service or personal care items.  Expenses incurred by, or on behalf of, guests.

LCM Policies & Procedures August 28, 2006