En d o w m e n t C o m m i t t e e R e p o r t restricted (by the terms of the will) to repairs and maintenance of the church. (The church is not permitted to use the principal of these Mellon or Siebert funds.) Proceeds of the Repairs and Maintenance Fund (separate from the Mellon R & M Fund) (approximately 3%) are considered restricted to use for repairs and maintenance. As of December 31, 2021, these sub-accounts totaled $5,699,476.03, representing, for 2021, an increase of $596,772 from December 31, 2020, even after four quarterly draws totaling $185,000.
Trinity Episcopal Church has had the services of a parish led Endowment Committee since 1995. Created by resolution of the Vestry, it was initially charged with making recommendations to the Finance Committee to: (1) use a percentage of total return over the trailing 12 quarters for distribution; (2) change the investment strategy to increase equities and further reduce cash equivalents so that the Endowment would return enough to make distributions to the Vestry and also grow at a rate to keep up with inflation; and (3) establish a policy of distributing 4% to support the operating budget and 1% to be set aside to fund renovation and capital projects approved by the vestry.
For the last several years, as Endowment Committee members have desired to retire, the Vestry has been considering getting a professional investment advisor. In September 2021, an RFP (Request for Proposal) Committee consisting of Vestry members Daniel Leger and Chandler Van Voorhis, Treasurer, Gina Hammond, Endowment Committee members Guy Dove and Brad Gable, and the Rector (ex officio) issued an RFP to six firms. Five chose to respond. After an initial evaluation of the responses, two firms (PNC and the Trustees of the Funds- TOTF) were eliminated and the remaining three firms (Atlantic Union Bank, Truist and RBC) were each contacted by Zoom and asked to answer further questions. After considering these answers. the RFP Committee then made a final selection of Atlantic Union Bank. This recommendation was taken to the Vestry in a special meeting held on December 10, 2021 and approved.
In 2007-2008, the committee was reconstituted. The committee consolidated most of the fund accounts in one investment account at PNC, but retained management by the committee, hence the costs of management have been negligible. The committee also proposed a revised charter which was adopted by the Vestry. It retained the provision for distributions to the Vestry of 5 percent of the average balance over the trailing 12 quarters. Later, the withdrawal rate was reduced to 4 ½ percent in line with best practices. In October 2019, on the recommendation of the committee, the Vestry extended the period for calculating the average balance for the 2020 distribution to the trailing 16 quarters. In 2021 this committee consisted of David Hartley, Chair and members, Guy Dove, Stanley Dees, Brad Gable, Hudnall Ware and Gina Hammond. The chair of the Finance Committee, the Senior Warden and the Rector served as ex-officio members. (Please note that David Hartley and Hudnall Ware resigned in August 2021 to avoid a conflict of interest with future actions of the committee.) At this time, the Endowment fund has five subaccounts, including the Music Fund (which the Endowment Committee invests, but is not considered part of the Endowment.) The proceeds of the General Fund (approximately 63%) are not restricted. Proceeds from the Mellon General Fund (approximately 15%) are restricted (by the terms of the will) to general operating expenses. Proceeds of the Mellon Repairs and Maintenance Fund (approximately 15%) are restricted (by the terms of the will) to repairs and maintenance of the church and campus. Proceeds of the Siebert Repair and Maintenance Fund (approximately 2%) are 28
Actions are now being taken to establish our new account at Atlantic Union Bank. A resolution and charter for a new Endowment Committee have been drafted by Stanley Dees and were approved at the January 2022 Vestry Meeting. The new committee will consist of three voting at-large-members appointed by the Vestry, with the Treasurer serving ex officio. The atlarge-members shall serve for terms of three years and may be reappointed for one additional three-year term. One of the members will be a member of the Finance Committee and all members should have some familiarity with investment of securities. Initially, the three at-large-members will be appointed for staggered terms of one, two and three years respectively, and the member appointed initially for a one-year term may be appointed to two additional three-year terms. Trinity Church is indebted to the retiring members of the Endowment for their outstanding service to the church. After the 2021 Annual Meeting, the new Vestry will be taking names of persons interested in serving on the new Endowment Committee. Gina Hammond, Treasurer
