Endowment Committee Report

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. 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 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. 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. 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

Me a d e S o c i e t y R e p o r t

The following list includes the Meade Society members as of December 31, 2021. We are deeply grateful for their commitment to help preserve Trinity’s unique campus and to sustain its mission and ministries. Their generosity will help ensure that future generations are able to worship God and learn of our Lord and Savior in this beautiful sacred space, nestled in the Piedmont hills of Northern Virginia.

All parishioners are welcomed and encouraged to become a member of the Meade Society. Joining with those listed below simply indicates that you have included Trinity in your estate plan and have informed our Parish Administrator of your intention. If Trinity is already a beneficiary of your will, please notify us, so that we may add your name to the Meade Society membership, should you wish.

“All things come of thee, O Lord, and of thine own have we given thee.” (I Chron. 29:14b, KJV)

M e a d e S o c i e t y M e m b e r s

Anonymous Anonymous Anonymous Robert & Kathy Appenzeller, Jr. *John D. Archbold The Rev. Robert & Mrs. Janie C. Banse, Jr. Mr. & Mrs. Henry O. Chapman, III Barbara Tragakis Conner Josephine F. de Give Guy O. Dove, III *Benjamin W. Dulany *H.G. Dulany *H. Rozier Dulany C. Greg & Sarah Ellison *Helen Norris Fletcher *Joshua Fletcher *Joshua Norris Fletcher Joe & Ginny Fluet Bradley & Melinda Gable *Gordon & Laura Mae Grayson John & *Georgiana Greely Mr. & Mrs. Sydney D. Hall The Rev. & Mrs. James A. Hammond James L. Hatcher, Jr. Charles M. Hassett & Neil R. Peddicord James & Rebecca Hoecker *Edward F. & India Pickett Lilly Howrey *Isham & Lucy Keith Mr. & Mrs. Clyde C. Lamond III Sheryl Heckler Mazzatenta *Paul Mellon Ed & Margaret Moore *Patricia Zipprodt O’Brien *Richard T.C. Peard Nicole H. Perry *Mr. & Mrs. James Marshall Plaskitt *John Siebert Edith & *Bruce Smart *Norman & Carolyn L. T. Smith *Marguerite Stewart Heather & Richard Taylor Pamela Jean Wynfield