Trinity Episcopal Church of Hamburg

< Church Name > XXXXX Endowment Fund Policy

Proposed April 9, 2016

The XXXX Endowment Fund (the “Fund”), shall be established for , as designated and approved by the Vestry, in , with initial assets of <$nn,nnn>. The purpose of the Fund is to provide a common resource into which bequests and gifts can be channeled, which when invested will provide a principle base to generate earnings which can be used to further the church’s Christian endeavors.

The Fund shall be managed per the following policies.

Fund Asset Policy: All assets are to be held in the name of XXXX Fund. Further, the Fund shall include both the principal and any income earned. The Investment Committee shall determine what is principal and what is interest, according to standard and acceptable accounting principles.

Fund Management Policy: The Fund shall be managed by the Investment Committee, as per the Investment Committee By-Laws. The Investment Committee shall make recommendations to hold, sell, exchange, rent, lease, transfer, convert, invest, reinvest, and in all other respects to manage and control the assets of the fund, including stocks, bonds, debentures, mortgages, notes, or other securities, as in their judgment and discretion, they deem wise and prudent.

Fund Investment Policy: The Fund assets shall be invested for long-term growth and income, where the potential return is above average and the risk is moderate. The objective is to achieve a favorable return on investment, utilizing a conservatively managed, balanced and diverse mix of investment instruments, including fixed income (cash), intermediate and long term notes (bonds) and equities (stocks). The goal is to achieve an average long-term return on investment of at least 5% annually.

Reference the Investment Policy Statement of The Episcopal Diocese of Western New York – Diocesan Investment Trust, dated March 2012.

Fund Valuation Policy: The Fund value will be computed at the end of each calendar year, including both the prinicpal and any earned income. For purposes of Fund Withdrawal (see below), the Fund value shall be based on a 5-year running average of the annual valuations.

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Fund Withdrawal Policy: The annual distribution (withdraw) from the Fund, shall not exceed 5% of the Fund valuation. In any year the fund value drops below $XX,000, based on the five-year average, there shall be no distribution.

Fund Usage Policy: Annual distributions from the Fund, shall be used to accomplish specifically designated purposes agreed to by the Vestry. Or, in the absence of such designation, allocated and used per the following:

1. One-fourth for capital improvements, debt reduction, or the building program of .

2. One-fourth for scholarships or grants to members of , for the purpose of attending college, seminary, nursing or medical school; for church related camping or leadership conferences, or such other training which enables members of this congregation to grow in Christian faith and service to God’s people.

3. One-fourth for outreach into the community, including, but not limited to, grants to Episcopal colleges and seminaries, social service agencies, institutions and agencies to which this parish relates, and to special programs designed for those persons in our parish area who are in spiritual and/or economic need.

4. One-fourth for projects of the Episcopal Church, at home and overseas, including, but not limited to grants to the Domestic and Foreign Missionary Society of the Protestant Episcopal Church in the United States of America for: new mission development, professional leadership, educational ministries, world mission and ecumenism, evangelism and stewardship.

Fund Amendment Policy: Any amendment to this policy shall be presented to the Vestry for review and approval. Further, such amendments shall be approved by a two-thirds favorable vote of the full Vestry, in two meetings, at least twelve months apart. Or cannot be ameded.

*The full Vestry includes the Wardens and all currently active Vestry members.

Fund Disposition or Transfer Policy: In the event ceases to exist, either through merger or dissolution, disposition or transfer of the Fund shall be at the discretion of the Vestry in conformity with the approved congregational constitution and in consultation with the Bishop of the Diocese of Western New York. Consultation with the Domestic and Foreign Missionary Society of the Protestant Episcopal Church in the United States of America may be desirable for continuation of endowment fund obligations.

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