Sample
 

 

 

 


CHARTER OF THE PERMANENT ENDOWMENT FUND

for

CHRIST CHURCH, UNITED METHODIST

 

 

ARTICLE ONE

 

THE PURPOSE:

 

The Permanent Endowment Fund of Christ Church, United Methodist, Wellesley, MA, is established for the purpose of providing members and friends the opportunity to make charitable gifts to Christ Church, United Methodist that will become a permanent endowment of financial support and living memorial. The principal of all gifts to the Permanent Endowment Fund shall be restricted and the income as described in a separate document (“Sustainable Income from an Investment Portfolio”) only shall be used for the purposes specified by the Administrative Council.

 

ARTICLE TWO

 

ADMINISTRATION:

 

A.         The Permanent Endowment Fund shall be administered by The Permanent Investment Fund Committee

 

           (Pursuant to the provisions of The Book of Discipline as adopted in 1996 by the General Conference of The United Methodist Church.)

 

B.         The records of the Permanent Endowment Fund shall be audited at least as often as annually in accordance with the procedures prescribed in The Book of Discipline, and an annual report made to the Board of Trustees.

 

C.        The Permanent Investment Committee shall be accountable to the Charge Conference for the proper application of the income of the Permanent Endowment Fund, and shall provide a report at least annually to the Board of Trustees (see Flow Chart attached to these documents).

 

D.        Permanent Investment Fund Committee shall act as the legal representative of the Charge Conference and all decisions or actions shall be in accordance with the vote of the Charge Conference.

 

 

ARTICLE THREE

 

INVESTMENT OF ENDOWMENT FUNDS

 

A.         The Permanent Endowment Fund investment objectives are:

1.  Conservation of principal for the effective maintenance of purchasing power;

2.      Regular income at a reasonable rate;

3.      Growth of income and principal over and above that necessary to offset rises in the cost of

      living (inflation);

4.      Investment of assets in institutions, companies, corporations, or funds which make a positive

      contribution toward the realization of the goals outlined in the Social Principles of the United

      Methodist Church.

 

B.         The assets of the Permanent Endowment Fund shall be invested in one or more funds administered by the United Methodist Foundation of New England (the Foundation) or its successors representing the Annual Conference or area to which this church belongs, subject to article Four. When additions are made to the Permanent Endowment Fund, the Investment Committee shall determine how the additions shall be allocated among the funds administered by the Foundation, and the Committee may change the allocation from time to time.

 

C.        The Investment Committee shall keep appropriate permanent records of the identity of donors of bequests, if available, and special gifts and of any persons for whom a gift is made.

 

ARTICLE FOUR

 

CHANGE IN INVESTMENT POLICY:

 

Any transfer of the Fund assets for investment with an agency other than the United Methodist Foundation of New England must be approved by a majority vote of the Charge Conference, at which a quorum is present on recommendation of the Investment Committee, the Board of Trustees and the Administrative Council of Christ Church, United Methodist. If any assets are transferred for investment with another agency, the Investment Committee shall, in consultation with the Charge Conference, establish policies to ensure that investments will make a positive contribution toward the realization of the goals outlined in the Social Principles of The United Methodist Church.

ARTICLE FIVE

 

LIMITATION ON USE OF PRINCIPAL:

 

If the laws of this state permit expenditure of the principal of the endowment fund in certain circumstances, then in addition to any approval for such action required by state law, approval must be obtained from the Charge Conference by a two-thirds vote of the members present and voting at a meeting duly called for such purpose at which a quorum is present.

 

ARTICLE SIX

 

GIFTS TO THE FUND:

 

A.         Having in mind that overly-detailed restrictions on purposes may be impractical to administer, prospective donors shall be encouraged to. add their gifts to the unrestricted Endowment Fund permitting use of the income for broadly defined programs of the church.

 

B.         Accounts for more restricted purposes may be established by the Investment Committee with the consent of the Charge Conference. Funds accepted into these accounts, apart from the Endowment Fund, shall be used for the purposes specified by the donors, may involve the spending of principal, and a minimum of $25,000 required if principal can not be spent (i.e., a restricted endowment fund).

 

The Charge Conference may from time to time specify the minimum amount that may be allocated to any account restricted as to income.

 

  ARTICLE SEVEN

 

LIABILITY OF MEMBERS OF THE COMMITFEE:

 

No member of the Investment Committee, the Board of Trustees, or the Administrative Council shall be liable for any investment made in any fund administered by the Foundation.

ARTICLE EIGHT

 

MERGER, CONSOLIDATION OR DISSOLUTION OF CHRIST CHURCH, UNITED METHODIST:

 

If at any time Christ Church, United Methodist is lawfully merged or consolidated with any other church, all the provisions hereof in respect to the Fund shall be deemed to have been made in behalf of the merged or consolidated church which shall be obligated to administer the same in all respects and in accordance with the terms thereto. If Christ Church, United Methodist should ever be dissolved without any lawful successor thereof, the Fund, including both principal and interest to date, shall be deemed the responsibility of the United Methodist Foundation of New England with the continued distribution of income while maintaining the preservation of endowment principal and authorizing a successor United Methodist Church or institution to assume the powers afforded to Christ Church, United Methodist.

 

ARTICLE NINE

 

AMENDMENTS:

 

The provisions of Artides One and Five shall constitute a contract between Christ Church, United Methodist and the respective donors. Any amendment of Article One shall apply only to gifts made after the effective date of the amendment.

 

Subject to the foregoing, this Charter may be amended by a two-thirds vote of the members present and voting at a Charge conference duly called for such purpose at which a quorum is present.

 

All proposed amendments must conform with The Book of Discipline current at the time adopted.

 

THE UNDERSIGNED CERTIFY THAT THIS CHARTER WAS APPROVED BY A VOTE OF:

 

_ _ _ _ _    FOR                _ _ _ _ _      AGAINST        _ _ _ _ _     ABSTAINED,

 

AT A DULY CALLED MEETING OF THE CHARGE CONFERENCE OF

CHRIST CHURCH, UNITED METHODIST HELD AT THE CHURCH ON

APRIL 10, 2000, NOTICE OF THE PROPOSED ACTION HAVING BEEN

GIVEN IN THE CALL OF THE MEETING.

 

 

 

 

_________________________________________

Recording Secretary

 

 

_________________________________________

District Superintendent

 

 

_________________________________________

Pastor

 

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