Policies

One of the most important jobs of the Foundation Board of Directors is to protect the mission and reputation of the Foundation.  To do that, the Board has established policies pertaining to the acceptance of gifts, our investment choices, and distribution of funds.

Gift Acceptance Policy

The gift acceptance policy outlines the types of gifts we can accept and what the Foundation can and can’t do when soliciting or accepting those gifts.

The types of gifts we expect to receive most often are cash, securities, or insurance policies.  We will also consider accepting real estate, personal property, life income gifts, or ownership in privately held companies.  Obviously, each of these has its own concerns that must be considered before the gift is accepted, be it the expense of owning the gift, the potential for liability, or the difficulty in turning the assets into cash.

The Board must also review the appropriateness of the gift by ensuring the gift does not compromise the core values of the Foundation or damage its reputation.  The Board will also make certain the intent of the donor is compatible with the Foundation’s future use of the gift.

Read the complete Gift Acceptance Policy by clicking here.

Investment Policy

Our investment policy is designed to guide the Board in its future investment decisions, striking a balance between income, growth, and long-term safety of principal.

The Endowment Fund has a long term investment outlook and, therefore, will generally have a greater percentage of equity securities than fixed income securities in its portfolio.  For the General Purpose Fund, Capital Expenditures Fund, or Donor Designated Fund, the investment timeline is generally much shorter, which means the safety of principal is a much higher priority than investment growth.  As a result, fixed income investments will make up a nearly all of the purchases for these funds.

Read the complete Investment Policy by clicking here.

Distribution Policy

The Distribution Policy for the Endowment Fund provides a guide to the Board for determining the amount of annual distributions. The policy takes into consideration the assets of the Endowment Fund over a five-year period. The Board also considers the inflation rate and the overall return earned by the Endowment Fund over the same five-year period. While the amount distributed may vary somewhat from year to year, the approached being used by the Board generally results in an annual amount equal to about three percent of the assets of the Endowment Fund.

Distributions from the General Purpose Fund are made from the principal donated to the fund. The timing and the amounts to be distributed will be determined by the Board. The Board will consider the perceived need and benefit of the opportunities identified for possible distributions from the Special Purpose Fund. Generally, it is expected that donations to the Special Purpose Fund will be distributed within three years of receipt. The Returns earned while the principal is held will be placed into the Endowment Fund.

Distributions from the Capital Expenditures Fund will only be made to help Bethel Presbyterian Church fund a future Expansion or major capital project. The distributions will be made from the principal donated. The Returns earned while the principal is held will be placed into the Endowment Fund.

Read the complete Distribution Policy by clicking here.

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