WACC Permanent Endowment Program Policy
( October 25, 2009 )
The primary purpose of the Winchester Avenue Christian Church ( WACC ) Permanent Endowment Program is to provide a means to aid the future operation and programs of the church. It is primarily an “end of life” type gift program. It is not intended to compete with or replace the regular giving of church members, memorial contributions, the Trustees Fund or donations for specific programs or projects. It is not a reserve fund, a rainy day fund, or building fund. It also is not intended to replace the responsible stewardship of church resources by current or future members.
All assets received by the Permanent Endowment Program ( PEP ) shall be considered permanent to be invested with the goal of preserving the value of the original gifts and to generate income. Each year an amount will be withdrawn from the PEP and distributed to supplement the needs of the church. The annual amount to be withdrawn will vary depending on the change in the value of the PEP for the year and the need to maintain the value of the original gifts.
II. Types Of Gifts:
The PEP is not a traditional memorial fund although qualifying gifts, designated for the PEP, can be made in the memory of someone. Gifts and bequests to the program can be in a variety of forms including stocks, bonds, real estate, tangible property, cash etc. All gifts received in any form other than cash will be converted to cash at its fair market value as soon as practical. In some rare cases the WACC may want to refuse a gift or bequest to the PEP. This can be done by a majority vote of the Church Board upon recommendation of the Trustees.
Since all gifts designated for the PEP are considered permanent to be invested to supplement the future needs of the church, they can not be spent.
Undesignated gifts to the church in the form of bequests, residual value of trusts, annuities, life insurance etc. shall become the property of the PEP.
III. PEF Trustees:
The PEP shall be managed by the Church Trustees who are elected by the Congregation. The Senior Minister and the Board Chairman will serve as advisors without a vote.
The responsibilities of the PEP trustees shall be:
A. Meet quarterly during the first month of each calendar quarter. They shall elect officers each year ( President, Vice President, Secretary/ Treasurer ) from the Trustees as needed.
B. Publicize the program to the Congregation, sponsor “planned giving seminars”, confer with prospective donors, and promote other activities which will bring growth to the program.
C. Provide a written annual report to the Church Board and the Congregation which shall include a list of gifts received, investment transactions, amount available for spending, any expenses incurred by the trustees relating to the program and the total value of the program at year end.
D. Allocate year end funds available for spending according to item IV. The Trustees shall not have the responsibility for determining how the amount available for spending is spent except for the portion designated to be allocated to the Church Trustees Fund.
E. Invest the amounts received consistent with the goals of the program. When making this decision, the agencies of the Christian Church ( DOC ) which are designed for this type of investment management should receive consideration.
F. Although it is not required, the Trustees are encouraged to make provisions in their own financial planning to provide a gift to the PEP.
IV. Annual Spending From The PEF.
Operational and promotional expenses incurred by the Trustees in the performance of their duties for the PEP will be paid from the Trustees General Fund. Moneys available annually for distribution from the PEP will distributed as follows:
1. 50 % of the amount available for distribution shall be allocated to the Trustees General Fund.
2. The remaining 50% shall be distributed as recommended by the Stewardship Department with the approval of the Church Board.
V Amending Procedure
Since this policy is designed to carry out the wishes of those who donate to the PEP, the policy can only be amended by a 80 % majority vote of the entire Church Board at two consecutive regular scheduled meetings after the proposed changes have been posted and announced to the congregation two weeks prior to the first meeting. The congregation must then approve the changes by a 80% of those present at a meeting announced and scheduled two weeks in advance. Reasons to amend may include catastrophic events such as earthquakes, fires, or floods.
In the event that WACC should terminate its ministry, the assets of the PEP shall be transferred to a trustee with instructions from the Church Board concerning future spending of the income from the program. The Christian Church Foundation Inc. ( DOC ) should receive consideration to provide this service.