All Saints' Investment Fund Plan

Investment Fund Plan Table of Contents 1

Plan of Operation .................................................................................................................................. 2 1.1

2

Committee Operations .................................................................................................................. 2

1.1.1

Purpose .................................................................................................................................. 2

1.1.2

Membership .......................................................................................................................... 3

1.1.3

Meetings ................................................................................................................................ 3

1.1.4

Quorum ................................................................................................................................. 3

1.1.5

Structure ................................................................................................................................ 3

1.1.6

Vestry Meetings .................................................................................................................... 3

1.1.7

Liability ................................................................................................................................. 3

1.1.8

Fund Management................................................................................................................. 4

1.1.9

Fund Records ........................................................................................................................ 4

1.1.10

Fund Assets ........................................................................................................................... 4

1.2

Investment Policies ....................................................................................................................... 4

1.3

Gift Acceptance Policy ................................................................................................................. 5

1.4

Distribution Policies and Procedures ............................................................................................ 5

1.5

Amendments ................................................................................................................................. 5

1.6

Communication and Reports ......................................................................................................... 5

1.6.1

Auditing the Fund ................................................................................................................. 5

1.6.2

Quarterly Reporting .............................................................................................................. 6

1.6.3

Annual Reporting ................................................................ Error! Bookmark not defined.

1.6.4

Acknowledgment of Gifts ..................................................................................................... 6

1.6.5

Adoption ............................................................................................................................... 6

Gift Acceptance Policies and Procedures ............................................................................................. 7 2.1

Introduction ................................................................................................................................... 7

2.1.1

Background Information ....................................................................................................... 7

2.1.2

Unrestricted and Restricted Gifts Defined ............................................................................ 7

2.1.3

Confidentiality ...................................................................................................................... 8

2.1.4

Procedural Information ......................................................................................................... 8

2.2

Gift Acceptance Committee .......................................................................................................... 8 1|Page

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2.3

2.3.1

Cash....................................................................................................................................... 8

2.3.2

Publicly Traded Securities .................................................................................................... 9

2.3.3

Closely Held Securities ......................................................................................................... 9

2.3.4

Real Property ........................................................................................................................ 9

2.3.5

Tangible Personal Property ................................................................................................. 10

2.3.6

Other Property ..................................................................................................................... 10

2.4

3

1

Direct Gifts.................................................................................................................................... 8

Deferred Gifts ............................................................................................................................. 11

2.4.1

General ................................................................................................................................ 11

2.4.2

Bequests .............................................................................................................................. 11

2.4.3

Lifetime Planned Gifts ........................................................................................................ 11

2.4.4

Gifts of Life Insurance ........................................................................................................ 12

2.4.5

Gifts of Retirement Benefits ............................................................................................... 12

2.5

Gifts with Donor Restrictions ..................................................................................................... 12

2.6

Payment of Fees Related to Gifts to All Saints’ Episcopal Church ............................................ 13

2.6.1

Finder's Fees or Commissions............................................................................................. 13

2.6.2

Professional Fees................................................................................................................. 13

Distribution Policy .............................................................................................................................. 13 3.1

Allocation.................................................................................................................................... 13

3.2

Total-Return Principle................................................................................................................. 14

3.3

Expendable Funds Accrued ........................................................................................................ 14

3.4

Budgeting .................................................................................................................................... 14

Plan of Operation 1.1

Committee Operations 1.1.1

Purpose The Investment Committee is charged by the Vestry of All Saints’ Episcopal Church with management of the Parish Investment Fund (“Vestry Fund”). It is authorized to establish its own objectives, policies and guidelines, including selecting, monitoring, making and replacing investments and determining and

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adjusting asset allocation as needed in accordance with the Investment Policy Statement.

1.1.2

Membership The members of the Investment Committee shall be the members of the Foundation Trust Fund Board.

1.1.3

Meetings The Investment Committee shall meet at least once every calendar quarter for the purpose of reviewing the Vestry Fund or more frequently as deemed in the best interest of the Fund.

1.1.4

Quorum A quorum shall consist of a simple majority of its voting members. The committee shall function under Robert’s Rules of Order.

1.1.5

Structure The Investment Committee Chair shall select a recording secretary from among its membership. The recording secretary shall maintain complete and accurate minutes of all meetings of the Investment Committee and supply a copy thereof to each member of the Committee.

1.1.6

Vestry Meetings The Investment Committee shall provide a written report of its activities to the Vestry at least once every calendar quarter.

1.1.7

Liability Members of the Investment Committee shall be covered by All Saints’ Episcopal Church’s Director's and Officer's liability insurance. Members of the Investment Committee shall not be liable for any acts or omissions committed by them (including losses that may be incurred upon the investments of the assets of the Vestry Fund) only to the extent that such acts or omissions were in good faith and did not involve intentional misconduct. Each member shall be liable only for his/her own intentional misconduct or for his/her own acts or omissions not in good faith, and shall not be liable for the acts or omissions of any other members.

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No member of the Investment Committee shall engage in any self-dealing or transactions with the Vestry Fund by entities (other than the Church) in which the member is an officer, has a controlling interest or any direct or indirect financial interests and they shall at all times refrain from any conduct in which their personal interests would conflict with the interest of the Vestry Fund.

1.1.8

Fund Management The Investment Committee shall provide for professional management of investments by retaining an investment manager or managers with proven skills working with Endowments and Trust Funds. Professional assistance regarding legal matters may be sought as the Investment Committee deems to be in the best interests of the Vestry Fund. If there are real estate assets, the Investment Committee may also seek a real estate manager to be retained by the Vestry.

The Investment Committee is expected to hold regular meetings with the investment manager to review investment performance evaluate the current investment outlook and discuss investment strategy.

1.1.9

Fund Records The Parish Treasurer, together with the investment manager, shall maintain complete and accurate books of account for the Vestry Fund.

1.1.10 Fund Assets All assets donated to and accepted by All Saints’ Episcopal Church for inclusion in the Vestry Fund will be held in the name of “THE VESTRY FUND OF ALL SAINTS’ EPISCOPAL CHURCH.” Actions to buy, hold, sell, exchange, rent, lease, transfer, convert, invest, reinvest and in all other respects to manage and control the financial assets of the Vestry Fund, including stocks, bonds, debentures, mortgages, notes, warrants of other securities, as in their judgment and discretion they deem wise and prudent, are to be made by the investment manager(s) consistent with policies and procedures established by the Vestry on recommendation of the Investment Committee.

1.2

Investment Policies The Investment Committee shall recommend to the Vestry appropriate Vestry Fund Investment Policies.

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1.3

Gift Acceptance Policy The Investment Committee shall recommend to the Vestry appropriate Gift Acceptance Policies and Procedures through which the decision is made whether a gift to the Vestry Fund shall be accepted. These will include appropriate reviews to determine whether the best interests of All Saints’ Episcopal Church are served by accepting or rejecting the gift. See Section 2, “Gift Acceptance Policies and Procedures”.

1.4

Distribution Policies and Procedures The Investment Committee shall recommend to the Vestry appropriate Distribution Limits consistent with Section VIII of the Investment Policy Statement. Any deviation from the distributions recommended by the Investment Committee must be approved under the Changes to Policy and Procedures section below.

Collateral and Borrowing – None of the restricted portions of the Vestry Fund may be used for collateral on loans. Nor shall any portion of the principal amount of the Vestry Fund be "borrowed," including any "temporary usage" for other Church needs.

1.5

Amendments Any amendment to this Section I, including this Section itself, shall be adopted by a 65% supermajority of the Vestry in each of three successive monthly meetings, followed by a confirmation vote of 70% of the members of the congregation who choose to vote at a regularly scheduled meeting or at a special meeting called specifically for the purpose of amending these resolutions.

In the event the Church ceases to exist, whether through merger, dissolution, or some other event, disposition or transfer of the Vestry Fund shall be at the discretion of Vestry in conformity with the approved Diocesan constitution and consistent with the laws of the State of California governing such matters. Consultation with a professional manager may be desirable for appropriate marketing advice.

1.6

Communication and Reports 1.6.1

Auditing the Fund The Investment accounts shall be audited from time to time but at least once every three years by a certified public accountant. The accounts shall be subject to annual review, except in those years when a formal audit is taking place, by a person deemed by the Diocese as being competent to conduct such reviews.

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1.6.2

Reporting All gifts to the Vestry Fund shall be reported to the Vestry on a monthly basis.

The Investment Committee shall report at from time to time, as requested by the Vestry, to the Vestry on the following:

1.6.3

1.6.4



Investment performance and portfolio status.



Current investment outlook and investment strategy.



Recommended modifications to the Investment Policy Statement and in investment strategy.



Significant changes in management of the portfolio.



Audit or review results.



Other communication that the Investment Committee feels is necessary to facilitate the Vestry Fund’s objectives and goals.

Acknowledgment of Gifts to the Vestry Fund 

All Saints’ Episcopal Church and the Rector shall acknowledge all accepted gifts within thirty (30) days of acceptance.



The Treasurer will record each gift, keeping in mind the appropriate IRS Guidelines and Rules.

Adoption The foregoing Plan of Operations is hereby ADOPTED by the Vestry this __ day of __________ 2011.

Attest: Vestry Members _______________________________

______________________________

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2

Gift Acceptance Policies and Procedures 2.1

Introduction 2.1.1

Background Information These Sections 2 and 3 defines the Gift Acceptance policies and procedures for All Saints’ Episcopal Church of Carmel, California, a 501c3 California religious corporation (Parish).

All Saints’ Episcopal Church wishes to encourage broad and diverse giving to support its mission and goals and to be able to respond quickly to the offer of gifts by prospective donors. The present policies and procedures provide guidance for both donors and Parish representatives in the acceptance of gifts.

Some gift situations can be complex, and decisions should be made only after careful consideration of a number of interrelated factors. Therefore, these policies and procedures require that, prior to acceptance, the Investment Committee must consider the merits of a particular gift and a final decision be made by the Vestry.

2.1.2

Unrestricted and Restricted Gifts Defined Gifts to All Saints’ Episcopal Church in whatever form may be unrestricted, temporarily restricted, or permanently restricted.

Unrestricted gifts support general Parish operations, and carry no restrictions from the donor as to use. Unrestricted gifts may also be made to the Endowment Funds, with no condition on the use of the funds generated.

Unrestricted gifts may come in any acceptable form – such as cash, check, securities, or bequests. The common element is the absence of specific required purpose beyond supporting general Parish operations. The Vestry may designate the use of such funds on a temporary basis.

Restricted gifts support specific purposes designated by the donor and accepted by All Saints’ Episcopal Church. Restricted gifts may support the annual operating budget, a specific project or campaign, or they may be intended to support in perpetuity a specific purpose designated by the donor and accepted by All Saints’ Episcopal Church. Restricted gifts may come in any acceptable form – such as cash, check, securities, or bequests. The common element is support of a specific, designated purpose.

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2.1.3

Confidentiality All information obtained from or about a donor shall be held in the strictest confidence. The name, amount or the conditions of any gift shall not be published or otherwise be made generally known within All Saints’ Episcopal Church without the express written consent of the donor and/or beneficiary.

2.1.4

Procedural Information All gifts received by All Saints’ Episcopal Church will be processed by either (1) the Church Treasurer, if specifically designated for operating budget or an existing special fund or (2) the Investment Committee, for a decision on the disposition of the gift. If there is any question about the form of the gift, the purpose or the wishes of the donor, the gift must be referred to the Investment Committee.

2.2

Gift Acceptance Committee The Investment Committee of All Saints’ Episcopal Church shall serve as the Gift Acceptance Committee.

The Investment Committee shall report to the Vestry on all gifts received on a monthly basis or more frequently as may be warranted by circumstances of specific gifts.

All Saints’ Episcopal Church will not accept any gift if there is any question as to whether the donor has sufficient title to the assets, or whether the donor is legally able to transfer the property as a gift. Taking into consideration the due diligence performed by the Investment Committee, the Vestry has final discretion on the acceptance of any gift to All Saints’ Episcopal Church.

2.3

Direct Gifts Gifts made to All Saints’ Episcopal Church will normally be received by the Investment Committee on behalf of the Church, or be received by others and passed on to the Investment Committee for processing as outlined below. The Vestry will then be notified and advised, and will make any decisions about the gifts.

2.3.1

Cash Gifts in the form of cash and checks may be accepted regardless of amount when in accordance with this Plan and at the discretion of the Vestry. All

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checks must be made payable to All Saints’ Episcopal Church and shall in no event be made payable to an employee, agent, or volunteer of the Church.

2.3.2

Publicly Traded Securities All Saints’ Episcopal Church may accept securities that are traded on any public Exchange. In most cases, All Saints’ Episcopal Church or its investment manager will immediately sell such securities and temporarily invest the proceeds pending final disposition of the gift in accordance with the donor’s wishes. In no event shall any employee or volunteer working on behalf of All Saints’ Episcopal Church commit to a donor that All Saints’ Episcopal Church will hold a particular security unless authorized by the Investment Committee to do so.

Stocks may be accepted in one of the following forms: 

A physical certificate registered in the name of All Saints’ Episcopal Church.



A physical certificate in the name of the donor with properly executed stock powers attached with signatures properly guaranteed.



By transfer to an account of the church from a bank, brokerage firm or similar financial institution.

Stock controlled under SEC Rule 144 will be held until the restriction on sale expires and then will be immediately sold.

2.3.3

Closely Held Securities Non-publicly traded securities may only be accepted after approval of the Investment Committee, which will consider the disposition of or income from the securities. The Committee must review any restrictions, financial exposure, fungibility of the security, and timing of sale and any of the conditions that might impact its desirability.

2.3.4

Real Property No gift of real estate shall be accepted prior to a review by the Investment Committee and an appraisal from a qualified appraiser approved by the donor and Investment Committee. The appraisal shall be paid for by the donor.

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The Investment Committee may require that an environmental audit, inspection or impact study be made of real property being considered as a gift to All Saints’ Episcopal Church. The Committee may not accept a gift that would expose All Saints’ Episcopal Church to expense of cleanup, litigation, etc. that may result from the acceptance of such property.

Special attention may be given to the receipt of real estate encumbered by a mortgage. Real property that is encumbered by debt shall not be accepted unless there are sufficient assets provided to fully service or retire the debt.

2.3.5

Tangible Personal Property No gift of personal property shall be accepted and acknowledged prior to a review by the Investment Committee and an appraisal from a qualified appraiser approved by the donor and Investment Committee. The appraisal shall be paid for by the donor.

Jewelry, artwork, collections, and other personal property may be accepted if an agent working on behalf of All Saints’ Episcopal Church shall have reason to believe the property has a realizable net value and that it can be readily liquidated. Personal property that obligates All Saints’ Episcopal Church to ownership of it in perpetuity may or may not be accepted.

Only the Investment Committee may represent to a donor that property will or will not be held by All Saints’ Episcopal Church for a requisite period of time.

Donors should be notified at the time of receipt of a gift that All Saints’ Episcopal Church would, as a matter of corporate policy, cooperate to the full extent required by law, in all matters related to IRS investigations of non-cash charitable gifts.

2.3.6

Other Property No gift of other property shall be accepted and acknowledged prior to a review by the Investment Committee and an appraisal from a qualified appraiser approved by the donor and Investment Committee. The appraisal shall be paid for by the donor.

Other property of any description including mortgages, notes, copyrights, royalties, easements, whether real or personal, shall only be accepted by action of the Vestry after consultation with the Investment Committee.

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2.4

Deferred Gifts 2.4.1

General All Saints’ Episcopal Church or any of its agents acting on behalf of the Church, shall not act as a Personal Representative of a donor's estate. All Saints’ Episcopal Church or any of its agents shall not act as a trustee or cotrustee of a charitable remainder trust.

All information obtained from or about a donor shall be held in the strictest confidence. The name, amount or the conditions of any gift shall not be published or otherwise be made generally known within All Saints’ Episcopal Church without the express written consent of the donor and/or beneficiary.

2.4.2

Bequests All Saints’ Episcopal Church shall actively encourage gifts through wills (bequests).

Gifts from the estates of deceased donors consisting of property that is not acceptable shall be rejected only by action of the Vestry in consultation with the Investment Committee. The Committee shall expeditiously communicate the decision of the Investment Committee to the Vestry and the legal representatives of the estate. If the representative of the estate or any family member of the deceased is dissatisfied with the decision, they may review the decision with the Investment Committee and the Vestry. politzer

2.4.3

Lifetime Planned Gifts In general, All Saints’ Episcopal Church will encourage the use of the services of a professional manager, when donors desire to enter into lifetime planned gifts, such as a Charitable Remainder Trust, Charitable Gift Annuity agreements, life estate gifts, and pooled income funds. In all cases, the Parish encourages donors to seek their own counsel regarding tax advice as the Parish is not qualified to provide such advice.

“Life Estate Gifts” may be accepted by approval of the Vestry in consultation with the Investment Committee in situations where the asset involved appears to be a portion of the donor's wealth that is not significant, and the committee is satisfied that there has been full disclosure to the donor of the possible future ramifications of the transaction.

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2.4.4

Gifts of Life Insurance The Church will encourage donors to name All Saints’ Episcopal Church to receive all or a portion of the benefits of life insurance policies that they have purchased on their lives.

All Saints’ Episcopal Church will not, however, as a matter of course agree to accept gifts from donors for the purpose of purchasing life insurance on the donor's life. Gifts of life insurance must be unencumbered.

In no event shall donor lists be furnished to anyone for the purpose of marketing life insurance for the benefit of donors and/or the church.

2.4.5

Gifts of Retirement Benefits All Saints’ Episcopal Church will encourage donors to name All Saints’ Episcopal Church to receive all or a portion of the proceeds of retirement benefits.

Gifts of retirement benefits must be unencumbered.

In no event shall donor lists be furnished to anyone for the purpose of marketing retirement benefits for the benefit of donors and/or the church.

2.5

Gifts with Donor Restrictions All Saints’ Episcopal Church will encourage potential donors to make donations into the Unrestricted Fund or the Church’s generic Restricted Funds, if those generic purposes can be seen to closely match the objectives of the donor.

If a donor desires to initiate a new permanently restricted fund, a minimum investment of $100,000 is required.

All Saints’ Episcopal Church will accept such gifts with donor-imposed restrictions on the use of the gift corpus and/or income as long as the gift supports the mission and goals of All Saints’ Episcopal Church.

Written documentation, signed by the donor, clearly defining the donor-imposed restrictions should be obtained and maintained permanently by the Treasurer.

All reasonable efforts should be made to encourage donors to make provisions to allow All Saints’ Episcopal Church to use the assets for an alternate purpose in the event the primary purpose is deemed no longer appropriate.

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If a restricted fund balance falls below $25,000, the restricted fund will be terminated, and the balance of the fund swept into a closely related Fund or into the unrestricted portion of the Vestry Fund. An attempt shall be made to notify the donor of such change if the change is made within twenty (20) years after the gift is made. After 20 years, no notification of this action will be required.

2.6

Payment of Fees Related to Gifts to All Saints’ Episcopal Church 2.6.1

Finder's Fees or Commissions All Saints’ Episcopal Church will pay no finder’s fees or commissions to any person as consideration for directing a gift to All Saints’ Episcopal Church.

2.6.2

Professional Fees All Saints’ Episcopal Church will pay reasonable fees for professional services rendered in connection with the completion of a gift to All Saints’ Episcopal Church. Such fees will be paid only with prior written approval of the Investment Committee.

In the case of legal, accounting and other professional fees, an attempt shall be made by the Investment Committee to ascertain the reasonableness of these fees prior to payment.

3

Distribution Policy 3.1

Allocation Allocations of funds will be made in two general ways: 1. Upon written request of the Investment Committee, distribution of Vestry Funds may be transferred to the Church Treasurer for those uses that conform to the purposes and restrictions incorporated in the enabling resolution adopted by the Vestry. Funds will be proportionally distributed to the named subendowment accounts.

2. The Investment Committee may obligate monies for general expenses incident to the management and administration of the Vestry Fund.

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3.2

Total-Return Principle Expendable funds will be determined on the basis of a total-return principle and will not be limited to income generated through interest and/or dividends. Funds invested in real estate shall not be considered in this calculation.

3.3

Expendable Funds Accrued Any unexpended funds from those available for distribution in a given year will be accrued and will continue to be considered “available for distribution” in subsequent years, unless otherwise designated by action of the Investment Committee.

3.4

Budgeting All allocations and distributions of available endowment generated funds (restricted or unrestricted) shall be budgeted by the Investment Committee and appear as a budgeted line item and such reported on the Church’s balance sheet and income statement. In all cases, the Investment Committee will adhere to the Generally Accepted Accounting Principles for the recording, management and distribution of Funds under its care.

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