Permanent Endowment Program Charter
CHARTER OF THE
FIRST UNITED METHODIST CHURCH
OF OAK RIDGE, TENNESSEE
PERMANENT ENDOWMENT PROGRAM
I. PURPOSE
The Permanent Endowment Program of First United Methodist Church of Oak Ridge, Tennessee, referred to in this document as the" Endowment Program", is established for the purpose of providing members and friends the opportunity to make charitable gifts to First United Methodist Church that will become a permanent endowment of financial support. The Endowment Program is separate from the Annual Operating Budget of the Church and is not intended to take the place of our commitment to the annual budget. A gift to the Endowment Program is given in addition to regular offerings, is generally for purposes beyond the day-to-day needs of the church and is another means by which the faithful may express their gratitude to God and strengthen the church's ministries. Planned giving through the Endowment Program can provide significant and needed resources for fulfilling the church's ministry and mission in a way which might not otherwise have been possible.
II. ADMINISTRATION
The Endowment Program will be administered by the Permanent Endowment Fund Committee of First United Methodist Church, referred to in this document as the "Committee", under the authority granted by the Charge Conference. The members of the Committee and its chairperson shall be elected by the Charge Conference and shall serve until their successors have been elected. The Committee shall elect a secretary and such other officers and sub-committees as appropriate. The Committee shall meet and keep such records as it deems necessary and appropriate. The Committee shall cooperate with the Finance Committee in assuring that the annual audit process as stated in The Book of Discipline is followed. The Committee shall make a full report to the Church Council at least annually.
III. GIFTS TO THE ENDOWMENT PROGRAM
Donors may give gifts of real or personal property, in addition to cash, to the Endowment Program. Gifts received in kind, at the discretion of the Committee, will generally be converted to cash and invested. Gifts to the Endowment Program shall be classified by the Committee as "designated" or "undesignated". Gifts designated by the donor to any of the endowment areas listed below shall be used for the donor's specific endowment purpose. Gifts undesignated or not clearly designated by the donor shall be assigned to any of the endowment areas by the Committee by majority vote in the Committee's sole discretion. The Endowment Program areas are:
A. Mission Endowment Funds
(for missions in and beyond the local church and community)
B. Property Endowment Funds
(for major purchase, construction, maintenance, and improvement of physical facilities)
C. General Endowment Funds
(for special needs and ministries determined by church leadership)
All decisions of the Committee regarding administration of the Endowment Program, sale and investment of assets and limitation of use and distribution of earnings shall be applicable to both designated and undesignated gifts. All gifts made to the Endowment Program shall be given and received subject to the terms and limitations set forth in this document.
The Committee shall have the authority and responsibility to accept or reject any and all gifts to the Endowment Program in keeping with the authority granted by the Charge Conference. The specific purpose of each donor account authorized by the Committee shall be stated in order to fulfill the wishes of the donor and thereby to segregate and maintain gifts for their stated purposes. Earnings from designated gifts shall be distributed to designated purpose(s) as appropriate. Establishment of new endowment areas shall be at the discretion of the Committee.
IV. INVESTMENT OF ENDOWMENT FUNDS
The Endowment Program's objectives are:
A. Preservation and growth of principal through prudent investment practices;
B. Regular earnings at a reasonable rate with appropriate risk; and
C. Investment of Endowment Program assets in institutions, companies, corporations, or Programs which make a positive contribution toward the realization of the goals outlined in the Social Principles of the Church.
All gifts received by the Endowment Program and reduced to cash or marketable securities shall be invested through the establishment of one or more accounts with the Holston Conference of the United Methodist Church Foundation, Inc., as the Endowment Program's investment advisor. The investment of Endowment Program assets with the Holston Conference of the United Methodist Church Foundation, Inc. is defined as a prudent investment practice.
V. CHANGES IN INVESTMENT ADVISOR
Any transfer of Endowment Program assets for investment with an investment advisor other than the Holston Conference of the United Methodist Church Foundation, Inc. must be approved by a majority vote of the Charge Conference upon the recommendation of the Committee and the Church Council.
VI. LIMITATIONS ON USE OF PRINCIPAL
The Endowment Program, as directed by the Committee, is to invest principal and make use of the earnings from Endowment Program gifts. All or any part of the principal amount of a gift may be withdrawn as directed by the donor at the time of the gift or with the later consent of the donor and the concurrence of the Committee. All other withdrawals of principal may occur only in the event of extreme and overwhelming circumstances and must be approved by a two-thirds (2/3) vote of the Charge Conference of First United Methodist Church with the consent of the Committee and the Church Council.
VII. LIMITATIONS ON USE OF EARNINGS
In the Committee's sole discretion and by majority vote, a portion of the earnings from the investment of Endowment Program gifts may be converted to principal.
VIII. ALLOCATION OF EARNINGS
The earnings of the Endowment Program shall be allocated by the Committee as directed by the donors at the time of their gift or as directed by will or other gift document if such direction is in conformity with the general purposes set forth herein. If no such direction is given by the donor, the earnings shall be allocated by the Committee within the framework of the Endowment Program areas. Earnings from principal shall be allocated to the same endowment area as the donor's gift. A portion of earnings may be converted to principal at any time in the Committee's discretion.
IX. DISTRIBUTION OF EARNINGS
Distributions of designated Endowment Program earnings shall be made by the Committee as directed by the donor. Distributions of undesignated Endowment Program earnings shall be made by the Committee subject to approval by the Church Council before disbursement.
The Committee may receive requests for distribution of undesignated earnings. Upon receipt of a request and after evaluation, the Committee may accept or reject the request for funding in its sole discretion, by majority vote. The Committee shall obtain requested earnings by redeeming those earnings from the investment advisor and shall disburse those earnings for approved purposes.
X. LIABILITY OF MEMBERS OF THE COMMITTEE
In the absence of gross negligence or fraud, no member of the Permanent Endowment Fund Committee of the First United Methodist Church shall be personally liable for any action or omission with respect to the Endowment Program.
Xl. MERGER CONSOLIDATION. OR DISSOLUTION OF THE FIRST UNITED METHODIST CHURCH OF OAK RIDGE. TENNESSEE
If at any time, First United Methodist Church is lawfully merged or consolidated with any other church, all the provisions hereof in respect to the Endowment Program shall be deemed to have been made in behalf of the merged or consolidated church which shall be obligated to administer the same in all respects and in accordance with the terms thereto. If First United Methodist Church should ever be dissolved without any lawful successor thereto, the Endowment Program assets, including both principal and interest to date, shall be distributed to the Holston Conference of the United Methodist Church Foundation, Inc., which shall use the Endowment Program assets for the charitable purposes identified by the Endowment Program.
XII. AMENDMENTS
Amendments to the Endowment Program Charter which do not substantially alter the stated purpose of the Endowment Program shall be made only by a two-thirds (2/3) vote at a duly announced Charge Conference of First United Methodist Church. The rights, duties and obligations of a donor and the Endowment Program regarding a gift are determined at the time of the gift by written direction of the donor or by the later agreement of the parties and are unaffected by subsequent Charter amendments.
XIII. SEVERABILITY
If any provisions or any application of any provisions of this Endowment Program Charter shall be held or deemed to be or shall be illegal, inoperative, or unenforceable, the same shall not affect any other provisions or any application of any provisions herein contained or render the same invalid, inoperative, or unenforceable.
THIS PERMANENT ENDOWMENT PROGRAM CHARTER WAS ADOPTED THIS DAY OF ,2003, IN A DULY AU1HORIZED CHARGE CONFERENCE OF THE FIRST UNITED METHODIST CHURCH OF OAK RIDGE, TENNESSEE, BY A VOTE OF
FOR, AGAINST AND, ABSTAINED. DAY OF ,2003, IN A DULY AU1HORIZED CHARGE CONFERENCE OF THE FIRST UNITED METHODIST CHURCH OF OAK RIDGE, TENNESSEE, BY A VOTE OF FOR, AGAINST AND, ABSTAINED.
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Recording Secretary
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District Superintendent
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Pastor
