Revised as of January 23, 2005
A. Five Component Funds
B. Income Ratio
C. Total Return
D. New Gifts
E. Donor Designation
F. Component Funds Description
A. Ownership of the Funds
B. Declination of Gifts
C. Expenditure of Funds
D. Reports by Vestry
A. Number and Selection
B. Resignation, Removal, Filling of Vacancies
1. Organizational Meetings
2. Trustee Meetings
A. Solicitation of Gifts
B. Acknowledgement of Gifts
C. Management of Funds
1. Right of Retention
2. Duty of Inquiry
3. Right of Extension
4. Right of Conveyance
5. Right of Apportion
6. Duty to Set Aside
7. Vestry Review
D. Accounts and Reports
The Vestry of All Saints Episcopal Church of Fort Lauderdale, Florida hereby adopts The All Saints Permanent Endowment Fund. The Fund will consist of five (5) separate Component Funds in order to better carry out the parish's mission.
A. Five Component Funds
There shall be five Component Funds in The All Saints Permanent Endowment Fund. The uses and purposes for which the moneys and assets of each such Fund shall be expended are described generally hereinafter. The Vestry of the Church, in directing expenditures pursuant to the provisions of this Agreement, shall have broad discretion to identify specific needs as they arise and evolve over time without in any way enlarging or extending the general description of the Component Funds.
B. Income Ratio
At the beginning of each calendar year, each Component Fund shall compute an income percentage based on the dollar ratio that particular component bears to the total dollar value of the Permanent Fund. The percentage thus obtained shall then be used for the determination and assignment of income available for expenditure by that Component Fund during the calendar year. Thus, for example, if the Jubilee Component Fund ratio to the Permanent Fund is 20%; then 20% of the total income generated by the Permanent Fund in that calendar year shall be available to the Jubilee Component for expenditure.
C. Total Return
The term "income" as used in the Endowment Agreement shall be defined as an amount set by the Vestry annually not to exceed five percent (5%) of the average market value of the Permanent Endowment fluid on December 31 for the prior three (3) years.
The foregoing percentage, once determined, shall apply to all component finds of the endowment except the 75th Jubilee Community Fund component. The foregoing also shall not be interpreted to change any of the provisions in the endowment document, as originally adopted, regarding the 75th Jubilee Community Fund.
D. New Gifts
In the event that any new gift is received by the Permanent Fund in excess of 15% of its total principal between January 1st and June 30th of any year, then the income percentages for all components shall be recalculated and shall control for the balance of that calendar year after the date of the gift. (prior to that date the old percentages shall control). If a gift in excess of Fifteen (15%) Percent of the total principal of the Permanent Fund is received subsequent to June 30, then none of the percentages shall be changed until the beginning of the next calendar year. Similarly, if a gift totaling less than Fifteen (15%) Percent of the principal of the Permanent Fund is received at any time during the calendar year, no changes in the income percentages of any Component Fund shall be made until the beginning of the next calendar year.
E. Donor Designation
Any donor or maker of any gift to the Permanent Endowment Fund may designate which component such donor or maker desires to receive such gift. In the event a gift shall be received without the donor designating a specific component, then such proceeds shall be added to the Unrestricted Fund Component.
F. Component Funds Description
1. Unrestricted Fund.
Income expenditures from this Fund shall be made for such uses and purposes (including, without limitation, the uses and purposes of any other Component Fund of The All Saints Permanent Endowment Fund) as will, in the judgement of the Vestry, most effectively assist, encourage and promote the overall purpose of the Church, as set forth in its Articles and By-laws, and the well being of the Church and its members.
2. Building and Grounds Fund.
Income expenditures from this Fund shall be used for the capital improvement, expansion and construction of Church properties.
3. Ministry and Music Fund Income expenditures from this Fund shall be used to support the Ministry of all persons, lay and ordained, and to fund special extra-budgetary programs that afford spiritual and musical support to the people of the Church and the community.
4. 75th Jubilee Community Fund Income expenditures from this Fund shall be used to do God's work for those other than ourselves and to enhance the mission outreach of the Church. A minimum of twenty-five percent (25%) of the net income attributable to this Fund shall be expended each year. With approval by the Vestry, income also may be allocated, even though not actually disbursed in the year in which such allocation is made. (Income so allocated shall then be available for distribution in a later year, together with all the net income attributable to the Jubilee Fund in that later year.) Any net income not distributed or allocated in a given year shall be added to the Jubilee Fund principal. In no event shall there be an invasion of Fund principal, nor shall income or principal from this Fund be diverted into any of the other Component Funds.
5. Christian Education Fund Income expenditures from this Fund shall be used to support special Christian education, events or programs for persons of all ages.
II. Responsibilities of the Vestry of the Church
A. Ownership of Funds.
Legal title to all moneys and other assets given, granted, devised or bequeathed to Component Funds of The All Saints Permanent Endowment Fund shall be vested in the Church; and the Vestry of the Church shall exercise in respect of such moneys and assets all rights of absolute ownership other than those held by the Trustees pursuant to this Agreement. Without in any way limiting or restricting the generality of the foregoing, the Vestry shall have the power to vote upon all stocks held by it; to unite with other owners of the securities of any corporation in carrying out any plan for the reorganization thereof; to exchange the securities of any corporation for others issued by the same or by any other corporation upon such terms the Trustees shall deem proper; to assent to the consolidation or merger of any corporation whose securities are held by it with any other corporation; to lease by such corporation of substantially all of its property to any other corporation, or to lease by any other corporation of substantially all of its property to such corporation, and upon such consolidation, merger, lease, or similar arrangement; to exchange the securities held by the Trustees for other securities issued in substitution therefore; to borrow or loan money and to make such pledges and mortgages in connection thereof as may be reasonably necessary; to pay all such assessments, expenses, and sums of money as it may deem expedient for the protection of the interest of the Fund as holder of the stocks, bonds, or other securities of any corporation. The term "corporation' as used in this paragraph shall include any other business organization.
B. Declination of Gifts.
The Vestry of the Church shall have the duty and authority to decline, on behalf of the Church and, The All Saints Permanent Endowment Fund and its Component Funds, any gift, grant, bequest or devise, or any part thereof, made to a Component Fund of The All Saints Permanent Endowment Fund which, in the Vestry's opinion, will not properly serve the purposes thereof.
C. Expenditure of Funds.
The Vestry of the Church shall have the exclusive power and authority to direct the expenditure of the income and principal of each of the Component Funds of the All Saints Permanent Endowment Fund. (Such authority as to recommendation for expenditure may be delegated by the Vestry to others.) The Vestry may expend, for the uses and purposes of each Component Fund, the entire income available for expenditure as computed using the income ratio. Any Income computed for a particular Component Fund which has not been expended by the end of a calendar year may be added to the principal of that component. In the alternative, unexpended income from one calendar year may be allocated to a later year. Income so allocated shall then be available for distribution in that later year together with all the other net income available for expenditure by that Component Fund in that later year.
The Vestry may also expend in any calendar year, for the uses and purposes of any Component Fund (other than the 75th Jubilee Community Fund) in the event of an extraordinary need therefor as determined by the Vestry, such amounts of the principal of such Component Fund as shall not exceed in the aggregate five percent (5%) of the value of the principal of such Fund at the commencement of the calendar year; provided, however, that the Vestry may not so expend amounts of the principal of any Component Fund in more than two (2) successive calendar years; and provided, further, that any amounts of principal so expended shall be returned to the Component Fund out of subsequent investment income within three (3) years from the date of the last invasion. No further invasion of that component shall be made until the restoration of prior invasions have been repaid in full. Each invasion of principal shall first be approved by nine (9) members of the Vestry.
In no event may a loan be made from the Endowment if the balance in the Endowment is less than the total of the original contributions to the Endowment less approved withdrawals of these contributions.
D. Reports by Vestry.
The Vestry shall render to the members of the Church at their Annual Parish Meeting a complete report of the expenditures made or directed to be made from each of the Component Funds of The All Saints Permanent Endowment Fund during the preceding calendar year and of the uses and purposes for which such expenditures were made. If any income has not been expended for a particular Component Fund, the Vestry report shall include an explanation of the intended use of the allocated but unexpended income.
A. Number and Selection.
The Trustees of The All Saints Permanent Endowment Fund shall be six (6) in number and selected as follows:
Three members of the Church who are not members of the Vestry shall be elected, by ballot, as Trustees by the members of the Church at their Annual Parish Meeting. At the first Annual Parish Meeting of the members of the Church following the adoption of this Resolution, the members shall elect three Trustees; one to serve until the next Annual Meeting and until his or her successor shall be elected and shall have qualified; one to serve until the second Annual Meeting following his or her election and until his or her successor shall be elected and shall have qualified; and one to serve until the third Annual Meeting following his or her election and until his or her successor shall be elected and shall have qualified. At each Annual Parish Meeting of the members of the Church thereafter, the members shall elect one Trustee to serve until the third Annual Meeting following his or her election and until his or her successor shall be elected and shall have qualified. No person may serve more than two consecutive terms as a Trustee whether elected by the members of the Church or by the Vestry.
Two members of the Vestry of the Church shall be elected as Trustees by the Vestry. At the first meeting of the Vestry after the first Annual Meeting of the members of the Church following the adoption of this Resolution, the Vestry shall elect two Trustees, one to serve until the first meeting of the Vestry after the next Annual Meeting and until his or her successor shall be elected and shall have qualified, and one to serve until the first meeting of the Vestry after the second Annual Meeting following his or her election and until his or her successor shall be elected and shall have qualified. At each first meeting of the Vestry after the Annual Meeting of the members of the Church thereafter, the Vestry shall elect one Trustee to serve until the first meeting of the Vestry after the second Annual Meeting following his or her election and until his or her successor shall be elected and shall have qualified.
The sixth Trustee shall be the Rector of the Church who shall serve ex-officio (without vote).
B. Resignation, Removal, Filling of Vacancies.
Any Trustee, except the Rector of the Church, may at any time resign by written notice mailed or delivered to the Rector. The resignation of a Trustee shall be effective at the time specified therein and, unless otherwise specified therein, the acceptance of a resignation shall not be necessary to make it effective.
A Trustee shall cease to be a Trustee if and when he or she ceases to be a member of All Saints Parish. A Trustee elected by the members of the Church shall cease to be a Trustee if and when he or she is elected to the Vestry. A Trustee elected by the Vestry shall cease to be a Trustee if and when he or she ceases to be a member of the vestry.
Removal by a Trustee of his or her principal residence from Fort Lauderdale, Florida, or vicinity, or failure by a Trustee to attend three consecutive meetings of the Trustees without a reason satisfactory to the Vestry, or a Trustees' conviction of a crime involving moral turpitude, shall, at the discretion of the Vestry, operate as an accepted resignation of such Trustee.
If and when a Trustee elected by the members of the Church dies, resigns or otherwise ceases to be a Trustee, the vacancy shall be filled for the unexpired term by election by the remaining Trustees of a person from among the members of the Church who is not a member of the Vestry. This action by the Trustees shall be subject to Vestry approval.
If and when a Trustee elected by the Vestry dies, resigns or otherwise ceases to be a Trustee, the vacancy shall be filled for the unexpired term by election by the Vestry of a person from among the Vestry.
1. Organizational Meetings.
The Trustees shall hold an Organization Meeting during the calendar month following the first meeting of the Vestry following each Annual Parish Meeting of the members of the Church; and they shall elect a Chairperson and a Secretary from among their number, and may transact any other business at said Organization Meeting.
2. Trustee Meetings.
The Trustees shall hold meetings during each of the second, third and fourth calendar quarters of each calendar year at such times and places as they shall determine. Other meetings of the Trustees may be called by the Chairman or at the request of two Trustees and held at such times and places as the Chairman shall determine.
Five of the Trustees shall constitute a quorum for the transaction of business at any meeting of the Trustees, and a majority vote of those present.shall be required for the taking of any action by the Trustees.
The Secretary shall give ten (10) days notice to each other Trustee either by mail, telephone or personally of the time and place of each meeting of the Trustees.
The Secretary shall make and keep minutes of the meetings, and any other proceedings of the Trustees, and shall mail or deliver copies of all such minutes to the Senior Warden and the Clerk of the Vestry.
The Trustees shall serve without compensation; but expenses incurred in connection with their duties, including compensation for services and expenses of attorneys, advisors and agents, when such expenses have been incurred with the prior approval of the Vestry of the Church, shall be paid out of the available income of the Component Funds of The All Saints Permanent Endowment Fund in proportion to the respective amounts of principal of such Fund at the commencement of the calendar year during which such expenses shall have been incurred, or shall be paid out of the available income of any Component Fund on account of which such expenses shall have been incurred.
A. Solicitation of Gifts.
The Trustees shall formulate and implement continuing programs (1) to make members of the Church and others in the community aware of the existence, structure, goals and activities of The All Saints Permanent Endowment Fund and its Component Funds; (2) to encourage others to make gifts, grants, and bequests to The All Saints Permanent Endowment Fund and its Component Funds; and (3) to acquire by direct and personal solicitation from persons of wealth and persons of modest means alike and from large and small entities, such sums of money and other assets as will enable The All Saints Permanent Endowment Fund and its Component Funds to meet the needs which have given rise to their creation or such needs as have been recently identified by the Vestry.
B. Acknowledgement of Gifts.
The Trustees shall publicly acknowledge those persons and entities that have made gifts and shall maintain a permanent record of such persons.
C. Management of Funds.
The Trustees shall have the control and direction of the investment and reinvestment of any and all moneys and other assets received and accepted into each Component Fund of the All Saints Permanent Endowment Fund. In carrying out these duties, the Trustee shall be guided by investments which a prudent person would make in investing his or her own property, having in view the preservation of the Fund and the amount and regularity of the income sought to be derived. In extension of the common law and statutory investment powers of fiduciaries (FS 518.11), the Trustees shall have the following powers:
1. Right of Retention.
To retain any and all property, real or personal, which may come into a Component Fund in the form and condition in which it may be, notwithstanding the same be not a lawful investment for trust funds under the laws of the State of Florida; or, if they shall deem it advisable, from time to time, to sell, exchange, mortgage, lease, or otherwise dispose of any or all such property, and to execute and deliver any and all such instruments of conveyance or otherwise as the Trustees, in their discretion, deem necessary or proper to effect any of the uses and purposes of such Fund.
2. Duty of Inquiry.
No purchaser of any securities or property sold or otherwise disposed of by the Trustees, and no transfer agent or other transferor of security, shall be bound to ascertain or inquire into the necessity or propriety of any such disposition, or shall be bound to see to the application of the purchase money paid thereon, and the receipts or receipt in writing of the Trustees for the purchase money of any property sold or for any moneys, stocks, funds, shares, or securities which may be paid or transferred to them shall effectually discharge the purchaser or purchasers or other person or persons paying or transferring the same therefrom or from being answerable for the application or misapplication thereof.
3. Right of Extension.
To consent to the extension, refunding or renewal of any such securities and to the extension or renewal of any mortgage or lien securing the same.
4. Right of Conveyance.
To make, execute, and deliver all proper receipts, bills of sale, conveyances, assignments, transfers, powers of attorney and agreements as the Trustees shall deem best in the management and control of the securities and property constituting a Component Fund.
5. Right to Apportion.
To apportion any losses to principal or income as the Trustees shall deem best, with full power to decide all questions as to what is income and what is principal, and to decide whether securities or investments are wasting securities or investments.
6. Duty to Set Aside.
To refrain, in their discretion, from setting aside any part of the income received from securities taken or purchased as part of a Component Fund at a premium as a sinking fund to amortize such premium.
7. Vestry Review.
In making investment and reinvestment decisions in accordance with the aforesaid standards and powers, the Trustees shall be vested with broad discretion, subject only to Vestry Review. In carrying out its investment functions, the Trustees may delegate some or all of its duties to other agents subject to the provisions and limitations of this instrument and subject to monitoring by the Trustees of any agent's recommendations.
D. Accounts and Reports.
The Trustees shall cause to be entered regularly in books kept for that purpose a full and complete account of all moneys and other assets received by each of the Component Funds of The All Saints Permanent Endowment Fund of the investment and reinvestment thereof, of the income earned thereon, and of moneys expended therefrom. The Trustees shall render to the Vestry a detailed report of their accounts and actions in these regards for each semi-annual calendar period ended June 30 and December 31, and shall include in each such report a separate statement of the amount of accumulated but unexpended income in each Component Fund as of the end of such period. The Trustees shall also provide to the Vestry such other reports of their accounts and actions as the Vestry may request from time to time.
V. Modification and Termination of the Permanent Endowment Fund
The maker of any gift, grant, devise or bequest to a restricted Component Fund of The All Saints Permanent Endowment Fund, and all persons claiming by, through or under such donor, shall be conclusively deemed to have agreed that:
If the Trustees of The All Saints Permanent Endowment Fund and the Vestry of the Church determine that there has been no substantial need for finds to serve the uses and purposes of one of the restricted Component Funds for five (5) consecutive calendar years, they may, by identical resolutions adopted by the affirmative votes of two-thirds of the members of both such bodies taken at meetings of each such body held in two (2) successive calendar years and at n interval of not less than twelve (12) calendar months, transfer the money and other assets in such Component Fund to another restricted Component Fund, the uses and purposes of which, in the judgment of the Trustees and the Vestry most closely resemble those of such unneeded restricted Component Fund, or if, in the judgment of the Trustees and the Vestry, no other restricted Component Fund has uses and purposes which resemble those of such unneeded restricted Component Fund, then to the Unrestricted Fund. (The foregoing shall not apply to the 75th Jubilee Fund Component.)
Any change or modification to this Agreement, other than A. above, shall first be presented by the Vestry to the Congregation at the Annual Parish Meeting and be approved by a majority vote of those electors entitled to vote. Such change or modification shall not be effective until or unless the Congregation has approved the proposal by a majority vote at its Annual Parish Meeting for three (3) consecutive years.
If the Church is dissolved, all money and assets in The All Saints Permanent Endowment Fund and its Component Funds shall be transferred and paid over by the Vestry of the Church to the Diocese of Southeast Florida for its general use and purposes.
OPERATING PROCEDURES - updated Dec 4, 2012
ALL SAINTS EPISCOPAL CHURCH PERMANENT ENDOWMENT FUND
CURRENT GOVERNANCE SUMMARY
Under the terms and conditions of The All Saints Permanent Endowment Fund (“The Fund”), as currently constituted under The Fund’s governing endowment agreement dated February 28, 2005 (“The Agreement”), The Fund has a total of six Trustees. Three of The Fund’s Trustees are elected by the voting membership of All Saints Episcopal Church of Fort Lauderdale, Florida (“The Church”) at its Annual Meeting (each such Trustee is elected to serve for a three-year term); Two Trustees are selected by the Vestry of The Church (each such Trustee is selected to serve for a two-year term) and The Rector of The Church serves ex-officio as the sixth Trustee of The Fund.
The responsibilities of The Fund’s Trustees under The Agreement include (1) the investment and reinvestment of The Fund’s assets (subject only to Vestry Review), the (2) solicitation and (3) acknowledgment of gifts to The Fund, and (4) rendering detailed reports to The Church’s Vestry semi-annually, and such other reports as The Church’s Vestry may request from time to time.
The responsibilities of The Church’s Vestry under The Agreement include (1) exercising, on behalf of The Church, all rights of absolute ownership of The Fund’s assets other than those rights expressly given to The Fund’s Trustees, (2) declining the acceptance of any gift that the Vestry deems will not properly serve The Fund’s purposes, (3) the exclusive power and authority to direct the expenditure of The Fund’s assets in accordance with The Agreement’s provisions, and (4) rendering to the members of The Church at each Annual Meeting of The Church a complete report of expenditures from The Fund, and of the uses and purposes thereof, during the preceding calendar year.
OPERATING PROCEDURES OF THE FUND
To strengthen and enhance the effective performance of their respective responsibilities under The Agreement, the Trustees of The Fund hereby recommend to the Vestry the establishment of the operating procedures described below. The operating procedures
hereby adopted may be amended, waived, or revoked, in whole or in part, by The Church’s Vestry or The Fund’s Trustees, in their exclusive discretion, acting either jointly or severally, at any time. Further, The Church’s Vestry and The Fund’s Trustees believe that nothing in the recommended operating procedures would produce a result inconsistent or be in conflict with any term or condition of The Agreement.
The Board of Trustees recommend the adoption of these Operating Procedures and Appendices A and B by the Vestry of All Saints Episcopal Church. Approved by the Trustees the 27th day of November, 2012. And, also approved, as revised by the ASEC Vestry on the 4th day of December, 2012.
All Saints Episcopal Church Endowment Gift Acceptance Guidelines
These guidelines are intended for use by members of The Church’s Vestry, The Fund’s Trustees, and others who may be involved in the solicitation or acceptance of gifts to The Fund, and to prospective donors who may wish to make gifts to The Fund. These guidelines are intended only as an outline of the considerations that may be involved in the solicitation and acceptance of gifts to The Fund, and they are therefore structured to allow for reasonable flexibility on a case-by-case basis.
The Gift Review Committee of The Fund’s Trustees
The purpose of The Gift Review Committee is to assist in properly evaluating proposed gifts to The Fund. The Gift Review Committee is encouraged to use its members’ expertise, the expertise of other members of The Church, and any other appropriate advisors to help assess proposed gifts. The Gift Review Committee may make such recommendations to the Vestry, as its members deem appropriate to use in the consideration and decisions to accept or reject a proposed gift to The Fund.
The Fund will generally accept all gifts of cash, regardless of the amount.
Checks shall be made payable to The All Saints Permanent Endowment Fund. In no event shall a check be made payable to any individual who represents or purports to represent The Church’s Vestry, The Fund, the Fund’s Trustees, or The Church in any capacity.
Publicly Traded Marketable Securities
The Fund will generally accept gifts of publicly traded marketable securities.
1) The value of the gift of such securities will usually be deemed to be the average of the high and low prices on the date of the gift.
2) A proposed gift of such securities to The Fund will generally be referred, prior to acceptance, to The Fund’s Investment Managers for their prospective consideration concerning the retention, or the liquidation and reinvestment of the proceeds of, such securities.
Non-publicly Traded or Otherwise Unmarketable Securities
1) A proposed gift of non-publicly traded or otherwise unmarketable securities will generally be submitted to The Gift Review Committee for review and recommendation concerning the rejection or acceptance of the gift.
2) The Gift Review Committee may consider possibilities for liquidation or other appropriate disposition of such securities prior to acceptance. The Gift Review Committee will generally also seek to determine:
a) Any legal restrictions on transfer
b) When a public offering or private placement of the securities might be possible or anticipated
c) Any other considerations appropriate to the specific legal and investment characteristics of the proposed gift
3) No commitment concerning any sale, repurchase or other disposition of any closely held, non-publicly traded or otherwise unmarketable securities, or any other similar agreement concerning a gift of such securities, may be made prior to completion of the gift in the form and manner required for acceptance of the gift by The Church’s Vestry.
The Gift Review Committee will generally submit a proposed gift of real estate to The Church’s Vestry for approved acceptance only after a thorough review.
1) The donor will usually be held responsible for obtaining and paying for an appraisal of
the value of the property. This appraisal will be required to be performed by an independent and professional agent acceptable to The Gift Review Committee.
2) The methodology of the appraisal must include a personal visitation and complete inspection of the property by the professional appraiser who will be issuing the appraisal.
3) The formal appraisal must contain all reasonably available information relevant to the legal description and status of the property and to the market valuation of the property, including but not limited to: photographs of the property, the tax map number, the assessed value, the current asking price, a legal description of the property, the zoning status, and complete information regarding all mortgages, liens, litigation or title disputes, and the documented valuations of all comparable properties.
4) A professionally conducted and certified environmental assessment will also generally be required for any potential real estate gift.
5) No commitment concerning any sale, repurchase or other disposition of any real estate, or any other similar agreement concerning a gift of real estate, may be made prior to the transfer of ownership to the Fund of the gift in the form and manner required for acceptance by The Church’s Vestry.
6) The donor may be asked to pay for all or a portion of the following:
a) Maintenance costs
b) Real estate taxes
d) Real estate broker’s commission and other costs of sale
e) Appraisal costs
7) For gift crediting and accounting purposes, the value of the gift will generally be deemed the appraised value of the real estate. This value may be adjusted by the costs of maintenance, insurance, real estate taxes, broker’s commission and other expenses of sale, or any other factors that may affect the net value of the property to The Fund.
l) A proposed gift of a life insurance policy will generally be referred to The Gift Review Committee for review and recommendation to The Church’s Vestry prior to final Vestry review and decision.
2) The Fund may be named a contingent beneficiary or the beneficiary of a percentage of a life insurance policy.
3) The Church’s Vestry will generally accept the ownership of a life insurance policy as a gift only if The Fund is named as the owner and beneficiary of 100% of the policy.
4) If the gift is a paid-up policy, the value for gift crediting and accounting purposes will generally be the policy’s replacement cost.
5) If the policy is partially paid-up, the value for gift crediting and accounting purposes will generally be the policy’s cash surrender value.
Tangible Personal Property
1) A proposed gift of tangible personal property will generally be referred to The Gift Review Committee for review and recommendation prior to final Vestry review and decision.
2) Gifts of jewelry, artwork, collections, equipment, software and the like will generally need to be assessed for their value to The Fund. Their value may be realized either by being sold or by being used in connection with The Fund or The Church’s purposes.
3) Depending upon the anticipated value of the gift, the donor may be asked to provide for a qualified outside appraiser to determine the gift’s value.
l) The Fund may accept deferred gifts through a variety of vehicles, including but not limited to:
a) Charitable gift annuities (or deferred gift annuities)
b) Pooled income funds
c) Charitable remainder trusts
d) Charitable lead trusts
f) Retained life estates
No person or entity acting or purporting to act, on behalf of The Church, The Fund, The Church’s Vestry, or The Fund’s Trustees, may act in such capacity as an executor or personal representative for any estate. Any person who is associated in any capacity with The Church or The Fund and who is simultaneously serving as executor or personal representative for an estate does so in a purely personal or independent professional capacity only, and not as a principal or agent of The Church or its Vestry, or of The Fund or its Trustees. In no event will The Church or The Fund act as trustee of any charitable remainder trust or otherwise on behalf of any donor or donor’s estate.
When donors or prospective donors are provided with planned gift illustrations or other informational documents, these will be provided free of charge. For all planned gift illustrations or informational documents, materials, illustrations letters or other correspondence, the following disclaimer should be included:
We strongly urge you to consult with your legal, financial and tax advisors to review all information that we have provided to you before you take any action. Any information that we have provided to you, or that we may provide to you hereafter, is provided to you without charge or obligation, and no information that we have provided or may provide hereafter constitutes legal, financial or tax advice.
Approved by the Board of Trustees this 27th day of November, 2012.
Approved, as revised by the ASEC Vestry this 4th day of December, 2012.
All Saints Episcopal Church Endowment Investment Policy Statement
This Investment Policy Statement articulates the philosophy, operating procedures, guidelines and investment objectives for the management of The Fund’s investments.
The assets of The Fund are to be invested with the same care, skill and diligence that a prudent investor would use to invest institutional permanent endowment funds considering the purposes, terms, distribution requirements and any other appropriate circumstances of The Fund. The primary investment objectives of The Fund are to provide long-term growth of principal and income without undue exposure to risk.
The Fund’s investment objectives and strategic asset allocation reflect its long-term time horizon.
Because of its long-term time horizon, The Fund can tolerate a reasonable degree of interim fluctuation in market value and rates of return suitable to its objectives. However, very high-level risk, extreme volatility and low quality rated, speculative investments should be avoided.
The Fund will not invest in private placements, restricted stocks or other illiquid issues, commodities futures, or securities arbitrage or other uncovered options positions. Further, The Fund will not engage in short sales, margin transactions or other similar specialized investment activities in the pursuit of speculative strategies: however, The Fund may invest in mutual funds or other similar vehicles that may engage in these activities from time to time in a reasonably prudent manner, particularly when such use may be reasonably expected to reduce The Fund’s exposure to emerging or otherwise previously unforeseen sources of extreme potential risk.
The investment objectives should be achieved through a diversified portfolio, which may include but is not limited to, large-cap, mid-cap, and small-cap U.S. equities, international equities (both developed and emerging markets), bonds, notes and cash. Mutual funds, common trust funds, exchange traded funds, and other similar vehicles representing any of these asset classes also may be used.
These guidelines are not intended to restrict or impede the efforts of The Fund’s Trustees in pursuit of The Fund’s objectives, nor are they intended to prevent The Trustees from taking advantage of appropriate emerging opportunities as they arise in any manner allowed to them under The Agreement. In particular, The Trustees shall have full discretion and flexibility for implementing the objectives and policies herein set forth.
Because conditions in securities markets may vary greatly throughout a market cycle, The Trustees and outside investment managers may change the asset mix of The Fund within the following target ranges in reasonably prudent pursuit of the overall objectives and policy guidelines herein set forth. The majority of The Fund’s investments will ordinarily be balanced between equity investments and investments in fixed income securities.
As guidance for outside investment managers and investment advisors to The Fund’s Trustees, the Trustees have established target asset allocations within the following ranges:
Asset Class Permissible Range
Equities: 40% to 75%
Large Cap US 15% to 70%
Mid Cap US 0% to 20%
Small Cap US 0% to 20%
International Developed Markets 10% to 20%
International Emerging Markets 0% to 15%
Fixed Income 25% to 50%
Cash Reserves 0% to 20%
All outside investment managers will be held accountable for managing the assets entrusted to them in accordance with the target asset allocation permissible ranges established by The Fund’s Trustees, and such managers will be required to bring any departure outside of these permissible ranges to the attention of The Trustees within a reasonable period of time. Only market value changes can increase the asset class exposure beyond the permissible ranges. However, the investment manager can propose to the Trustees prospective changes they deem appropriate in the permissible range of any asset class. Further, no single stock position should be allowed to exceed 5% of the total equity exposure of The Fund’s assets. And - except for US Government guaranteed or US Government Agency issues - no single bond position should be allowed to exceed 5% of the bond exposure of The Fund’s assets. Moreover, foreign fixed income securities should not be allowed to exceed 10% of The Fund’s total assets.
The target allocation among the asset classes may be determined at any time by The Fund’s Trustees in their discretion to reflect a prudent response to current market conditions.
Investment Goals of Performance
While maintaining the asset mix within the above guidelines, The Fund’s Trustees anticipate a risk level for The Fund’s overall investment program consistent with an expected return adequate to cover these components: expected distributions from The Fund to The Church under The Agreement, inflation, and overall growth of principal to the Fund.
Investment performance, measured on a total return basis, including gains, losses and income, should rank above the median of a universe of balanced portfolios with similar asset mix, similar risk and similar investment objectives over rolling five-year periods. The performance of the separate asset classes should rank above average over rolling five year periods when compared to the appropriate indexes.
All outside investment managers will be expected to provide detailed investment reports to The Fund’s Trustees at least quarterly, and at other times as requested by The Trustees on an exigent basis. Such reports should include information assessing the achievement of all applicable objectives and adherence to all other aspects of this policy statement and its guidelines.
All outside investment managers will be expected to keep The Fund’s Trustees informed of their organization and decision-making structure. Any significant changes in ownership, decision-making process, style or personnel should be promptly communicated in writing to The Fund’s Trustees. Any material instances of non-compliance with investment guidelines should also be promptly communicated to The Fund’s Trustees upon discovery, and corrective measures taken by the investment manager.
Decisions concerning manager retention will be based on investment performance, responsiveness, compliance with this investment policy statement and any other factor deemed important by the Trustees. The right to terminate a relationship with any retained investment manager, at the exclusive discretion of The Fund’s Trustees, will ordinarily be included as one of the essential terms of The Fund’s investment manager retention agreements.
Approved by The Fund’s Trustees this 27th day of November, 2012.
Approved by the ASEC Vestry this 4th day of December, 2012.