Resolution to Establish

RESOLUTION TO ESTABLISH

A

PERMANENT ENDOWMENT FUND

OF

ASBURY UNITED METHODIST CHURCH

The Charge Conference of Asbury United Methodist Church, a nonprofit corporation organized under the provisions of Chapter 504A of the Code of Iowa, hereinafter referred to as the Church, moves to establish the Asbury United Methodist Church Permanent Endowment Fund, hereinafter referred to as the Endowment Fund. This Endowment Fund shall be subject to the Articles of Incorporation of the Church, the Discipline of the United Methodist Church, the actions of the Charge Conference of the Church, and to the following covenants:

1. The Endowment Fund is created and exists solely for charitable purposes with its primary objectives being the establishment, promotion, and development of religious, charitable, and educational activities of the Church and for non-recurring expenses of the Church not regularly budgeted. For example, no principal or income from the Endowment Fund may be used for any of the following items:

A. Apportionments assessed to the Church by the Annual Conference.

B. Utilities, insurance, and/or any other current operation budget items. Current operating budgets include those in the existing budget as established by the Administrative Council for the year in which the principal or income is to be used, and as established by the Administrative Council for the preceding year. However, this restriction is not intended to eliminate funding of any special project above and beyond the highest dollar figure for that item as established in either year’s budget.

However, if a donor makes a gift or bequest which is earmarked specifically for items in A or B above, the Endowment Fund Committee may, at its discretion, accept this gift or bequest.

2. The Endowment Fund shall receive and hold bequests and gifts made to the Church.

3. Two different types of funds will be established and donors may select either one or both of the funds. Those funds are:

A. NONDISCRETIONARY FUND. Only the income of this fund, as defined by the by- laws of the fund, the terms of a bequest, or the Administrative Council may be used.

B. DISCRETIONARY AND MEMORIAL FUND. Both the income and the principal of this fund, as defined by the donor or termsof a bequest, may be used.

4. The Nondiscretionary Fund is established to fund three different areas. Those areas are as follows:

A. Missions/People projects

Local/District/Conference

National/International

B. TRUSTEES

Major repairs

Major improvements

Special objects or furnishings.

C. Program Development/Enhancements

Education/Communication

Evangelism

Worship

Percentages for funding the three areas will be recommended to the Charge Conference by the Permanent Endowment Fund Committee annually.

Needs in the above areas are ever present. Funds should be used prudently as they become available. The only time funds may be accumulated is if the funds are earmarked by the Trustees or Administrative Council for a specific project or purpose and it takes more than a year to plan and implement the project or it takes more than a year to raise enough additional funds to do the project. All projects originated from any of the above areas must have the approval of the Administrative Council.

5. The members of the Endowment Fund committee are empowered to act as follows:

A. They will be the financial agents of the Endowment Fund. The Endowment Fund Committee has the authority to make financial decisions to open special accounts with brokerage agents, trust facilities, banks, conference/area United Methodist Foundation, or other investment firms.

B. Gifts shall be received by the Endowment Fund committee. They shall make recommendations to accept or decline a gift to the Administrative Council.

C. The investment objective of the Endowment Fund is to be long-term growth with a reasonable return of income. A prudent approach should be taken when investing the funds. A plan of investment which does not risk significant loss of capital and provides an income return to the Endowment Fund which would be deemed to be reasonable should be chosen. Part of the annual income may be reapplied to the principal to insure that the value of the principal does not significantly erode with inflation. Some of the funds should be invested to assure accessibility within a reasonably short period of time and some of the funds should be invested for long-term growth. However, original investments received may be retained.

D. They will elect their own secretary/treasurer who will prepare financial reports and acknowledge all gifts promptly.

E. They will maintain a record of all gifts and bequests made to the Endowment Fund.

F. The promotion of the Endowment Fund will be the responsibility of the Endowment Fund Committee. Promotional costs as recommended by the Endowment Fund Committee may be charged to the Endowment Fund and paid out of income.

G. The Endowment Fund Committee will report to the Administrative Council at the June and December meetings or when requested and annually to the Charge Conference. This report would include the status of the Endowment Fund, the income available for distribution, and the distributions made.

6. The terms, conditions and covenants of the Endowment Fund may be amended as follows:

A. Changes will be proposed to the Administrative Council by the Endowment Fund Committee, or may be proposed by petition of a member of the Church to the Endowment Fund Committee. Church Members must be notified 10 days prior to the vote of the Administrative Council.

B. If the changes or petitions are approved by a majority vote of the combined Administrative Council and Endowment Fund Committee, the Church secretary shall notify, in writing, the District Superintendent and every household of the congregation of the changes being proposed.

C. After the District Superintendent and the congregation have been notified, the Charge Church Conference, attended by no less than 15% of the Church membership, must approve the changes a second time by two-thirds roll call vote of those present for the change to be effective.

7. The Endowment Fund shall exist under the authority of the Charge Conference. The Endowment Fund Committee shall report to the Administrative Council and the Charge Conference. The Endowment Fund Committee shall have ten members. Six of these members shall be nominated by the Church Nominating Committee and elected by the Charge Conference. These six members shall be elected for three-year terms, not more than two terms expiring in any given year and may be re-elected for one additional three-year term only. One representative from each of the following Church committee: Board of Trustees, Finance, Memorial, and Scholarship. These representatives will be selected by each of the respective committees for a one-year term.

The Chairperson of the Endowment Fund Committee shall be elected annually from the ranks of the Endowment Fund Committee and one individual may not serve more than three successive years.

8. In the event that the corporate structure of the Asbury United Methodist Church is dissolved and it is not succeeded by a surviving corporate structure, or in the event that the corporate structure of the Asbury united Methodist Church is so affected by a split of the congregation that it is difficult to determine which portion of the congregation constitutes the Asbury United Methodist Church or successor corporate structure, then the Endowment Fund shall be transferred to the Iowa United Methodist Foundation with the income to be used for United Methodist Churches in the SoutheastDistrict as determined by the District Superintendent for said District. The authority to determine when any contingency has occurred under this paragraph shall be in the sole discretion of the Bishop of the Iowa Conference of the United Methodist Church. This article may not be amended by a Charge Conference of the Asbury United Methodist Church without express or written approval of the Bishop of the Iowa Conference of the United Methodist Church.

9. It is the intent of the Asbury United Methodist Church Charge Conference that neither the principal nor income of any funds of the Endowment Fund shall be used for the following purposes:

A. To carry on activities not permitted to be carried on by an entity exempt from Federal income tax under S501 (c) (3) of the Internal Revenue Code of 1986 or the corresponding provisions of any future United States Internal Revenue Law.

B. To do any act which would render contributions to the Endowment Fund non-deductible under S170 (c) (2) of the Internal Revenue Code of 1986 or the corresponding provisions of any future United States Internal Revenue.

10. The Finance Committee of the Church shall be responsible for an annual audit of the Endowment Fund. The findings and recommendations of the audit shall be reviewed by the Administrative Council and reported to the Charge Conference.

Dated this 6thday of December, 2015, under authority of and at the direction of the Charge Conference of the Asbury United Methodist Church by resolution duly adopted.

______Signed______Signed______

SHAUNA DUDLEY- JAVAROSKI REV. LILIAN GALLO-SEAGREN

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