The guidelines in this policy are to be followed by the Social Justice Endowment Committee of the Lexington United Methodist Church in the receipt, investment and distribution of financial gifts, bequests and contributions to the Social Justice Endowment Committee of the Lexington United Methodist Church.  The primary objective for the management of these gifts is to provide resources to further the mission of the Church now and in the future.  It is the intention of this policy that these gifts will be handled with care and prudence.

WHEREAS, it is the desire and intention of this congregation to provide resources for future social justice programs.

WHEREAS, it is the purpose of the Social Justice Endowment Committee to enhance the funds available for the social justice programs of the Lexington United Methodist Church.

BE IT RESOLVED, the following statements and policies shall govern the investment of existing funds and any new funds received or solicited by the  Social Justice Endowment Committee of Lexington United Methodist Church.

I. Investment Goals and Objectives 

The investment goals and objectives for the Endowment Fund shall be to invest the corpus of the fund so that investment return may be used to obtain the goals and purposes of the fund as specified by the Administrative Council or the donor. 

II. Definition of Terms

Unrestricted Gift:  Moneys or other property given to the Church which may be used for social justice projects as recommended by the Social Justice Endowment Committee and approved by the Administrative  Council.

Restricted Gift:  Moneys or other property given to the Church which may only be used for a particular purpose as specified by the donor.

Endowment Funds:  Funds whose principal is intended to be preserved indefinitely or until the occurrence of a specific event.

Trust funds:  Special funds with the purpose designated by the donor and the principal plus earnings may be utilized for the intended purpose.

Social Justice Programs:  A program which promotes and enhances the dignity and welfare of people in unjust circumstances and programs which  address the  underlying  systemic  inequities and  causes of injustice.

Social Justice Endowment Committee:  Members of the congregation who have been nominated by the Charge Conference or delegated to the Committee via their representation on various other committees within the church. 

III. Investment Guidelines

All Endowment Funds received by the Lexington United Methodist Church shall be invested in one or more of the managed accounts currently held and managed by the United Methodist Foundation of New England or other professionally managed socially responsible funds.  The primary objective of investment is to provide a satisfactory return on the  investment  for  the  support  of the Church and its investment goals and objectives. 

The Endowment Funds of the Lexington United Methodist Church may be pledged as collateral or security for loans made to the church with an affirmative vote of two-thirds of those in attendance at a duly called Charge Conference.

IV. Receipt of Funds

Types of Gifts:
Gifts of an enduring nature may be given to the Church directly or as bequests in such forms as wills, charitable remainder trusts, life income agreements, assignments of life insurance, transfers of property (cash, stock, bonds, real estate, personal property), memorial gifts or through other governing documents.  Gifts may be unrestricted or restricted and may be in the form of a Trust Fund or an Endowment Fund.

Acceptance of Gifts:
The Social Justice Endowment Committee shall have the responsibility of recommending the acceptance or rejection of all gifts to the Administrative Council.  Gifts, which are unwieldy to manage or not in keeping with the mission of the Church, will be carefully reviewed, and their acceptance may not be recommended to the Administrative Council.  Properties transferred to the Church will generally be sold promptly and the proceeds placed with our investment managers.

V.  Endowment Fund Policies

Understanding that the needs of the Church change over the lifetime of an endowment, gifts to the Lexington United Methodist Church are encouraged to be made without restrictions.  The Administrative Council of the Church regularly establishes the  funding priorities for the Endowment proceeds and directs them to the specific programs that reflect the needs and interest of the congregation.  Priorities will be adjusted by future generations of leadership with respect to the mission of the Church and the resources available at the time.

Donors wishing to restrict their gifts are encouraged to include the following provisions in their directions to the Church:

a) That the Church body responsible for managing the program toward which the funds are directed be allowed to redirect the proceeds to similar or related programs should the designated program become overly endowed or discontinued. 

b) That the restrictions be limited to a time period not to exceed 10 years at which time the governing body of the Church could redirect the funds according to the current priorities of the Church.

c) That, by a two-thirds vote of a Charge Conference, the corpus of the Endowment Fund can be invaded in response to an urgent or critical need.  The funds used for such an extraordinary need are to be considered loans (not expenditures) and to be repaid an interest rate equaling the Federal prime interest rate in effect at the time of the loan. 

VI. Administration

In accordance with the Book of Discipline of the United Methodist Church, the Social Justice Endowment Committee is responsible for all our assets, real and personal.  All investable funds are delegated to the United Methodist Foundation of New England or any other professionally managed social responsible fund which oversees, and is in regular communication with, professional money manager(s) on at least a quarterly basis.

Having made a “good faith” effort to comply with the terms of this policy, the Social Justice Endowment Fund Committee shall be released from liabilities incurred in such a good faith effort.  Any member having a direct or indirect personal interest in any dealings or transactions involving these funds shall refrain at all times from any conduct in which personal interests would conflict the interest of the Lexington United Methodist Church.

VII. Spending Policy

Spending from the gifts received by the Social Justice Endowment Fund Committee will be on the realized cash basis only and all the spending from these gifts will be reviewed on a periodic basis. 

VIII. Reporting

The Social Justice Endowment Committee shall report the status of all  gifts for  Endowments  at  periodic  Administrative  Council meetings and in writing at the Annual Church Conference.

IX.  Revisions 

This document may be revised at any time on the recommendation of the Social Justice Endowment Fund Committee and approved by a two-thirds vote of those in attendance at a meeting of a Charge Conference. 

THE UNDERSIGNED CERTIFY THAT THIS STATEMENT OF PURPOSE WAS APPROVED BY A VOTE OF:

AT A DULY CALLED MEETING OF THE CHARGE CONFERENCE OF THE LEXINGTON UNITED METHODIST CHURCH HELD AT THE CHURCH ON OCTOBER 21, 2001, NOTICE OF THE PROPOSED ACTION HAVING BEEN GIVEN IN THE CALL OF THE MEETING.

Louise M.  Kreutziger, Recording Secretary

Rev.  Susan J.  Morrison, Pastor