The Endowment Fund
Frequently Asked Questions about The Endowment Fund
Q: What is the purpose of the Endowment Fund?
A: To be able to provide special funding for expansion, buildings, mission projects, special programs, etc., which are not part of the regular budget.
Q: How will the Endowment Fund be funded?
A: By gifts from the members or friends of the Isle of Hope United Methodist Church. These gifts can be in the form of bequests in Wills or Trusts, retirement accounts, real estate (if approved by the Board of Trustees), gift annuities, and other forms of gifts that can be readily converted to cash.
Q: Is there a written statement of investment objectives?
A: Yes, the written statement is on file in the Church office. In basic terms, the statement places emphasis on the growth of income and the capital appreciation of the fund.
Q: Who will oversee the Endowment Fund?
A: The Endowment Committee, which is presently composed of five (5) members of the congregation. These committee members should have some experience in investment management or endowment funds, and can be nominated by the Lay Leadership (nominations) Committee.
Q: Who will be the investment manager responsible for investing the money in the Endowment fund?
A: The investment manager will initially be the Georgia United Methodist Foundation, a non-profit foundation established by all of the Methodist Churches in Georgia. The foundation has a special investment arm, which presently handles all of the investments for the health and pension fund. This fund is invested according to the socially responsible investment principles of the United Methodist Church.
Q: Who makes the decisions about distributions from the Endowment Fund?
A: The Board of Trustees makes the final decisions about spending of distributions from the fund, and recommendations can come from the Endowment Committee or other members of the congregation. It is anticipated that no distributions will be made from the fund for several years, to allow the fund to grow.
Q: For what purposes can distributions from the Endowment Fund be made?
A: Construction of buildings, acquisition of land, renovation of buildings,mission projects, new church programs, or any other things that are not normally part of the annual budget.
Q: Can the principle of the Endowment Fund be distributed?
A: No, only the income (interest and dividends) and 2% of the capital appreciation of the fund can be distributed. The amount is designated annually by the Endowment Committee and the amount can be distributed by the Board of Trustees, or left in the fund to appreciate in value.
Q: Can gifts be made in honor of, or in memory of any person?
A: Yes, gifts can be made in honor of or in memory of, any person. The Endowment Committee will establish an annual recognition for all donors.
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