Holiday Park United Methodist Church – Endowment Fund Policy

 We, the Charge  Conference of the Holiday Park United Methodist Church of Pittsburgh, PA, 15239, move to establish The Holiday Park United Methodist Church Endowment Fund, hereinafter referred to as “The Church”.

The Endowment Fund shall be subject to the laws of the State of Pennsylvania, the Articles of Incorporation of the Church, The Discipline of the United Methodist Church, the actions of the Charge/Church Conference of the Church, as well as the following articles:

 Article 1:  Establishment

 The Endowment Fund shall exist under the authority of the Charge/Church Conference and shall be overseen by the Endowment Fund Committee. The Endowment Fund Committee will report its activities to Church Council on, at least, a quarterly basis. The Endowment Fund shall consist of seven (7) members appointed by the Church/Charge Conference. Each member will serve no more than a five (5) year term. Initial terms shall be assigned to ensure that a rotation system is in place. Members should include the Finance Chair and a Trustee.

 Article 2:  Purpose

 The Endowment Fund is created and exists solely for the charitable purpose of the Church, with its principle objectives being the promotion and development of religious, charitable and educational activities and for capital and maintenance projects not regularly budgeted by the Church. In no case shall the Endowment Fund be used for recurring budget expenses. Each generation shall fund its own ministries and attempt to expand them as appropriate.

 Article 3:  Alignment

 The Wills and Memorials fund and function will be included under the auspices of the Endowment Committee, but will be maintained as a separate account.

The Endowment Fund Committee will generally operate parallel to the Trustee Committee and will maintain open communication and close cooperation with that committee.

 Article 4:  Receipt of Assets

 The Endowment Fund shall receive and hold all gifts made to the Church, from sources such as bequests, final gifts of faith, insurance policies, trusts, or other planned or deferred arrangements such as cash gifts which are not designated. The Endowment Fund Committee may accept or reject any gifts to the Church that include restrictions or designations. Gifts other that cash, such as jewelry, valuable collections, stocks or real estate, upon acceptance, shall be evaluated by a reputable source approved by the United Methodist Foundation, and converted to cash as soon as appropriate.

 Article 5:  Fiscal Responsibility

 The Endowment Committee shall transmit all funds to the United Methodist Foundation of Western Pa (UMF). The United Methodist Foundation shall determine and oversee the investment of the Endowment Fund. The UMF shall use the Book of Discipline and their published Investment Policy as a guide in its investment decisions and regularly evaluate appropriate investment opportunities. The UMF is empowered to act on behalf of the Endowment Committee as follows:

  1. Be the fiscal agents of the Endowment Fund.
  2. Invest the monies of the Endowment Fund in such a way as to achieve an adequate and reasonable growth of the fund while not incurring significant risk to the principal of the fund.
  3. Maintain a complete accounting of all UMF Endowment Fund investments, including investment vehicles used form time to time, the principal of the Endowment Fund, capital gains, earned income and dividends, distributions and expenses.
  4. Report to the Holiday Park Church Endowment Committee when requested, the current state of the Endowment Fund. This reporting shall be done not less the annually and should include a statement of any distributions made from the Endowment Fund, and of the amount of money currently available for distributions. This information shall be included in all Church audits. In the absence of gross negligence or fraud, no member of the Endowment Committee shall be personally liable for any action made or omission with respect to the Endowment Fund.

 Article 6:  Disbursements

 No disbursements will be made from the Endowment Fund without review by the Endowment Committee and approval of the Church Council. Requests for fund may originate with the Church Trustees or any Program Chairperson. Disbursements will come from interest earned, dividends, share price increases and/or increases of real estate values, accumulated by the Endowment Fund. The principal of the Endowment Fund shall not be spent, except in extreme circumstances bordering on the survival of the Church itself. Any withdrawal of principal must be approved by a vote of two-thirds of the Endowment Committee as well as two-thirds of the special Charge Conference of the Church called for that purpose.

Disbursements are intended for capital or ministry projects which are not part of the regular Church operating budget. Disbursements are never intended to be used for current expenses. Any undistributed earnings for any year shall be added to the Endowment Fund but earmarked as potentially available for future legitimate disbursement or added to the Principal at the determination of the Endowment Committee.

In the event of a controversy surrounding a decision of the Endowment Committee and/or the Church Council, a special Church Conference shall be called. The decision reached by the Church Conference is final.

 Article 7:  Amendments and Changes

 Any changes to the foregoing provisions of the Endowment Fund may only be considered if they are consistent with the UM Book of Discipline and the laws of the Commonwealth of Pennsylvania. Suggested changes are to be submitted in writing to the Church Council. The Church Council shall call a special Church Conference to consider adoption of the proposed changes. Any change will require a two‑thirds favorable vote by the Church members present at the Church Conference.

 Article 8:  Church Mergers

 In the event that the Holiday Park UMC is lawfully merged with any other Church, the Endowment Fund shall be assigned to that merged Church, which shall be obligated to administer the funds in accordance with the policies and guidelines set forth here.

 Article 9:  Ratification

 The preceding terms and conditions establishing and maintaining the Endowment Fund shall be considered to be effective and binding upon approval of the Church Council and a Charge Conference for the Holiday Park United Methodist Church.

 Article 10:  Additional Guidelines and Procedures

 Additional promotional, educational and operational guidelines which are instructive to the congregation will be added from time to time by majority vote of the Endowment Committee and submitted to the Church Council for approval.

 Adopted at the HPUMC Charge Conference: June 18, 2013


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