The Endowment & Bequests Committee actively solicits gifts and bequests for the Endowment Fund and monitors and manages the finances of the Fund. Since the purpose of an endowment is to function in perpetuity, the Committee will determine whether the Endowment Fund had adequate growth to support a distribution of a percentage of that income generated in the previous year.
The purpose of the Endowment and Bequests Committee is
(1) to actively solicit gifts and bequests for the endowment fund and
(2) to monitor, manage, and recommend disbursements from the endowment fund.
An objective of the Committee is to provide a reliable annual source of supplemental revenue. Since the purpose of an endowment is to function in perpetuity, the annual payout of an endowment rarely exceeds five percent of the market value of the fund. The Committee instituted a policy to annually distribute three percent of the market value of our endowment. Under this conservative disbursement policy, the market value of our endowment must be 33 times the amount of a desired target annual distribution. (A $30,000 annual disbursement requires an endowment with a market value of one million dollars).
The Endowment and Bequests Committee administers the Endowment Fund as specified in Article VII of the By-Laws. The Committee reports to the Board on a semi-annual basis and to the Congregation at each annual meeting. At the annual meeting the report provides a full and complete account of the administration of the fund during the preceding year.
The Endowment and Bequests Committee consists of four to six members. One member is an appointed representative from the Board of Trustees. Members of the committee are members of the Congregation, with term limits as specified in the By-Laws. The members of the Committee select a chairperson, a recording secretary, and a financial secretary.
1) The Board of Trustees approved an Annual Endowment Fund Disbursement Policy on April 19, 2004, calling for the Committee to determine the disbursement amount equal to three percent of the market value of the Endowment Fund as of September 30th each year.
In accordance with the bylaws governing withdrawals from the Endowment Fund, the Endowment Committee requests the AUUC Board of Trustees (1), to authorize the redemption of shares of the Endowment Fund in the Disbursement Amount and (2), for the redemption of shares to occur as soon after January 1st as practical. The redeemed Disbursement Amount becomes part of the general funds of AUUC.
2) The Board of Trustees approved a Policy for Recording and Tracking Potential Bequests on February 14, 2005: The chair of the Endowment Committee shall maintain a bound logbook of potential bequests to AUUC.
The books are audited annually by a certified public accountant or other appropriate person who is not a member of the Committee.
The Committee may request other members of the congregation to serve as advisory members or subcommittee members and at the expense of FUND income, may provide for such professional counseling on investments or legal matters as it deems to be in the best interest of the FUND.
Distribution of Income
The committee shall determine what is principal and income according to accepted accounting procedures. Gifts and bequests to the FUND shall accumulate until a principal amount of $10,000 is achieved, after which the income generated from investment of the principal may be expended.
Income from the FUND shall be distributed at such times as deemed necessary and/or feasible to accomplish the following purposes: Not more than ninety percent for the physical plant of Accotink Unitarian Universalist Church, such as but not limited to maintenance of buildings, capital improvements or renovations and debt reduction; and not less than ten percent for outreach into the community. Programs for support are recommended by the Committee and approved by the Board of Trustees for funding. Suggestions or requests for funding are to be made to the Committee.