OF
THE RELIGIOUS SOCIETY OF FRIENDS
ENDOWMENT MANAGEMENT
POLICY
1. Gifts and Bequests: Unless it is
determined otherwise by the donor, memorial gifts and bequests to the meeting
will be contributed to the meeting's endowment funds. If not specifically
identified as part of a bequest, family members will be asked if there is a
preference as to the use of the money. If no preference has been expressed, the
gift or bequest will go to the General Fund. The Treasurer will inform the
family of the gift, and send the thank you acknowledgment to the donor.
2. The Treasurer shall maintain a permanent
record of all gifts and bequests to the meeting. A written cumulative report of
all gifts and bequests shall be provided annually.
3. Endowment funds shall be placed in the care
of bond, stock, or money market funds which employ socially responsible
investing policies. “Socially Responsible” indicates that the invested funds
will be used in a manner substantially in agreement with Friends testimonies -
emphasizing investments that reflect the use of capital in producing goods and
services that are beneficial and useful to people and to peace time industry.
Except as approved by the meeting at large (for example, to invest in a bond
issue from a Friends institution), the meeting shall not invest directly in
stocks or bonds.
4. The meeting's present spending policy is to
utilize 3.5% of the Funds' average market value (“investment return”),
calculated over the most recent twelve calendar quarters.
5. Endowment funds shall be accounted for:
a. General Fund spending will be included
in the annual budget of the meeting, as recommended by the Financial Oversight
Committee. General Fund investments are allocated to a Money Market fund with
check writing privileges, a corporate bond fund, and an equity mutual fund.
General Fund investments should target approximately a 65% equity/35% fixed income mix. From time to time, the
Treasurer may reallocate some investments to retain this mix.
b. Scholarship Fund: Principal is to be
invested through Friends Fiduciary Corporation; FFC Unit Income is to be
distributed by the Treasurer as instructed by the Scholarship Committee.
c. Friends in Need Fund:
Principal is to be invested through Friends Fiduciary Corporation; FFC Unit
Income is to be distributed by the Treasurer as instructed by the Friends in
Need Committee. The financial Oversight Committee is authorized to consider and
respond to requests for General Fund income from the Friends in Need Committee.
d. Perpetual Care Fund: Principal is to
be invested through Friends Fiduciary Corporation; the entire FFC Unit Income
is to be transferred to the Meeting's Operating Fund to defray expenses of
graveyard maintenance.
6. Gifts and bequests for maintenance of graves,
and purchase money for graveyard plots, shall be added to the principal in the
Perpetual Care endowment.
7. Unexpended balances at the end of each fiscal
year (June 30) in the Friends in Need Budget shall be available to the Scholarship
Budget; and subsequently any unexpended balances from the Scholarship Budget
will go to the General Fund.
8. Except as provided in paragraph 5.d., it is generally the policy of the
Meeting to raise from current members sums sufficient for ordinary operating
expenses, using endowment income only for assistance to members and special
needs of the Meeting.
9. The Financial Oversight Committee is asked to
be alert to opportunities to periodically reinvest unneeded income to
strengthen the endowment.
10. The Treasurer will be guided by minutes of the
Monthly Meeting that:
a. Make decisions on the disposition of new
gifts or bequests;
b. Authorize expenditures from General Fund; or
c. Authorize the drawing down of endowment to
pay expenses.
Endowment
funds shall be invested in the following current Endowment Accounts, with
disposition as indicated:
Account Use
of Income
Vanguard Money Market Reinvested
Vanguard Long Term Corporate Bond Transferred to Vanguard Money
Market
Vanguard Money Market - Building
Addition Reinvested
Domini Social Investments Reinvested
Friends Fiduciary Corp Distributed
to NMM, deposited
in
Vanguard Money Market