First Congregational Church

Investment Ministry Team

For a printable PDF of this document click here "FCC Plan of Operation.pdf"

FIRST CONGREGATIONAL CHURCH IN AMHERST (UCC)
 165 MAIN STREET              AMHERST, MA 01002              413-253-3456
FINAL
 DRAFT
PLAN OF OPERATION AND GUIDELINES

FOR THE INVESTMENT MINISTRY TEAM (IMT)

The stated purpose of the Endowment is “to enhance the mission and ministry of the First Congregational Church in Amherst (UCC) by providing enduring resources for programs and projects.”  The IMT’s objectives for the Endowment, therefore, are to preserve the real purchasing power of the principle in perpetuity, while providing a predictable and stable stream of income to serve the purpose of the Endowment.  All investment actions and decisions must be based solely on the best interest of the Church.

 

SECTION 1:   THE INVESTMENT MINISTRY TEAM (IMT)

The Investment Ministry Team (IMT) shall be the manager of all the endowment investment funds, hereafter referred to as the Endowment, of the First Congregational Church in Amherst (UCC) not specifically designated to be managed by some other team within the Church. The IMT will abide by current investment guidelines as established by the Congregation.  It shall be composed of three (3) to six (6) members of the Congregation who will serve at the pleasure of the Elected Leadership Team (ELT) and be elected annually at the Congregational Annual Meeting. The Pastor,Moderator and Treasurer will be ex-officio members.

The IMT shall meet at least semi-annually.  A quorum shall consist of two (2) members if the Team consists of three (3); of three (3) members if the Team consists of four (4) to six (6) members.  A majority present and voting shall carry any motion or resolution.  In the event of a tie vote, the rest of the Team members’ voteswill be solicited.

Complete and accurate accounts of all actions taken shall be maintained and given to each member and to the Elected Leadership Team. 

The Convener of the IMT shall assist the Congregation’s Treasurer in maintaining complete and accurate books of accounts for the Endowment.  The Congregation’s Treasurer shall sign all checks and other necessary documents on behalf of the Congregation in furtherance of the purposes of the Endowment.  The books shall be audited annually by a certified public accountant or other appropriate person who is not a member of the IMT, with the Endowment bearing the expense of the audit. 

The IMT shall render at each Annual Meeting of the Congregation a full and complete account of the administration of the Endowment during the preceding year.

The IMT may request other members of the Congregation to serve as advisory members and, at the expense of the Endowment, may provide for such in-house or outside professional counseling on investments or legal matters as it deems to be in the best interest of the Church.

In carrying out this Plan of Operation, the IMT, the ELT and any members or employees of these are fiduciaries of the First Congregational Church in Amherst (UCC) and must act with the care, skill, prudence and diligence that applicable law requires.

Members of the IMT shall not be liable for any losses which may be incurred upon the investments of the assets of the Endowment except to the extent such losses shall have been caused by bad faith or gross negligence.  No member shall be personally liable as long as he/she acts in good faith and with ordinary prudence.  Each member shall be liable only for his/her own willful misconduct or omissions, and shall not be liable for the acts or omissions of any other member.  No member shall engage in any transaction with the Endowment in which the member has direct or indirect financial interest and shall at all times refrain from any conduct in which his/her personal interests would conflict with the interest of the Endowment.

Recommendations to hold, sell, exchange, rent, lease, transfer, convert, invest, reinvest, and in all other respects to manage and control the assets of the Endowment, including stocks, bonds, debentures, mortgages, notes, or other securities, as in their judgment and discretion they deem wise and prudent, are to be made by the IMT with subsequent execution by the Convener of the Team.

 

SECTION 2:    RECEIPT AND MANAGEMENT OF GIFTS AND BEQUESTS

All assets are to be held in the name of the First Congregational Church in Amherst (UCC).

Unless otherwise stated, undesignated (unrestricted) gifts over One Thousand Dollars ($1,000.00), except gifts to the annual budget or to approved special fund drives, will be designated as Endowment Funds pending authorized disposition of such gifts through the IMT.  A gift shall be defined as anything of tangible value including, but not limited to, cash, stocks, bonds, jewelry, furniture, vehicles, real estate, etc.  Undesignated gifts or memorials of less than One Thousand Dollars ($1,000.00) may be assigned to the operating fund.

 All gifts received in the form of property, other than cash or gifts intended for use by the
Church, will be converted to cash at their fair-market value as soon as practicable.  Gifts intended for use by the Church, such as furniture, artwork, kitchen equipment, etc., can be converted to cash only upon approval by the donor, if appropriate and possible, and by the Elected Leadership Team.

The IMT reserves the right to refuse any gift.

SECTION 3:    DISTRIBUTION OF INCOME

Distribution of income from Donor-Restricted Funds will be based on the principles of Total Real Return, as defined in Appendix A, and will be governed by any legal restrictions on each fund. 

Funds not legally restricted by their donors may be kept in separate accounts, designated for specific purposes by vote of the Congregation, and known as Designated Funds. 

The amount available for distribution from all funds not donor restricted  shall be determined by the term Fund Withdrawal as defined in Appendix A.  The IMT shall recommend a sensible and prudent share of Fund Value to be distributed as Fund Withdrawal each year.  These expenditures can be used for the following purposes, which are listed in no particular order:

1. The acquisition of capital equipment to enhance worship and music and the accessibility to it.

 

1. Scholarships or grants to members of the First Congregational Church in Amherst (UCC) or those enrolled in its Church School or youth programs for:  undergraduate or graduate education in preparation for Christian service; Church-related camping, conferences or retreats; or such other training or education activities which enable this congregation to grow in Christian faith and service to God’s people.

1. Capital improvements to, or a building program of, the First Congregational Church in Amherst (UCC).  The ongoing presence of our historic building, and its use for civic and charitable purposes, is an important component of First Church mission and ministry. 

 

1. Outreach into the community including, but not limited to, special programs designed for those persons in our parish area who are in economic need, grants to social service agencies or institutions meeting such a need in the community or projects designed to promote justice in the local community.

1. Wider mission of the church at home and overseas, including, but not limited to, educational ministries, global mission projects, grants for professional development.    

 

1. Contributions to annual operating expenses.   Budget relief as necessary, or for unbudgeted “surprise” expenses, to help with the operating expenses of the Church.    

1. “Loans to ourselves” for capital improvements to church facilities. 

 

Certain Designated Funds, such as property escrows, will be exempt from regular distributions when their specific purpose is to build reserves against future contingencies or projects.  

Members of the Congregation are encouraged to suggest projects for funding.  The IMT shall receive all such requests and make recommendations to the Church Treasurer for presentation to the Elected Leadership Team for final decisions and funding.  

SECTION 4: AMENDING THIS PLAN OF OPERATION

All or any portion of this document may be altered or amended by a two-thirds vote of the members present at two Congregational Meetings held at least one (1) month apart and called specifically for the purpose of altering or amending this Plan and held in accordance with the Bylaws of this Church.

SECTION 5: ADOPTING THIS PLAN OF OPERATION

This Plan of Operation, recommended by the Elected Leadership Team acting as the ExecutiveCommittee, and voted on by the Congregation at two legally called Congregational Meetings, is hereby accepted.

First Congregational Vote: Dated this______ day of _______________, 2010

Second Congregational Vote:  Dated this _____ day of ______________, 2010

 

For the First Congregational Church in Amherst (UCC):  

By             ______________________________                                                                                                Moderator (Print Name)

                     
_______________________________                        Moderator (Signature)

                                      and     _______________________________
Clerk (Print Name)
_______________________________
Clerk (Signature)

 

Dated this ______day of _____________, 2010 

 

 

APPENDIX A

Designated Funds: These are Segregated accounts for which the Congregation has voted certain restrictions on how the money can be spent.  

Fund Value: The total net assets of the various funds as periodically reported by the Investment Ministry Team make up the Fund Value. The year-end value of each fund will appear in the Church Annual Report.

Fund Withdrawal:   A sensible and prudent portion of the Fund Value which shall be

 available for current use as determined by the IMT.  Under exceptional circumstances, this

 can be as much as ten percent (10%)  of the Fund Value based upon the six-year rolling

average of the Fund Value as of December 31, or whatever is the last business day, of each

 year.

 

Restricted Funds:  Limited to their donor’s rules on the use of the money.

 

The Endowment:   The total of reserve funds which may be invested for the long-term benefit of the Church. 

Total Real Return:  The summation of the annual appreciation of a fund from interest, dividends and capital gains, expressed as a percentage, minus a reasonable allowance for current inflation. New contributions to funds will be treated as Real Return in the year added.    

Unrestricted Funds:  Can be used in any way; the donor has made no specification(s) with regard to specific use.  

Working Funds: These Funds are available for current use in the form of cash, checking accounts or similar liquid assets.