Appendix 3

Draft Endowment Fund Policies 

TCC ENDOWMENT FUND

STATEMENT OF GOVERNANCE

 I.          The TCC Endowment Fund shall be under the general direction of the Board of Trustees, but shall be administered by an Endowment Committee consisting of five members, one of whom shall be the Senior Minister, ex officio, or his/her appointee.  TCC Trustees shall appoint four other members of the congregation annually for one year terms beginning July 1, two of whom shall be current members of the Board.  There shall be no limit to the number of terms an appointed member may serve.

 II.          The Endowment Committee shall work with the congregation to identify specific enduring programs worthy of endowed status.  Each program shall be described as to its purpose, shall have a target funding level and date by which the congregation wishes to see the program launched.  No program will be included in the Endowment Fund without the support of the congregation as expressed in a duly called congregational meeting. 

 III.         The Endowment Fund shall be entirely isolated from the accounts of TCC.  Further, there shall be no borrowing of endowment corpus, nor pledging of security.  The TCC Endowment may be used only to further the objectives of endowed programs; that is, other objectives are not to be pursued if such use can reasonably be understood to detract from the primary purpose of the funds or increase the risk of achieving such objectives. 

 IV.        The Endowment Committee shall report on its funds and programs at the annual meeting of the congregation. 

 V.         Income from endowment gifts shall be defined at the rate of the ten year Treasury bond at the beginning of each year.  This rate shall be applied to each endowed program's average quarterly assets of the prior two years.  This calculation determines the income produced for the subsequent year in support of that program. 

 VI.        Until an identified enduring program has realized 75% of the endowed level targeted by the congregation, all income for that program shall be retained in the endowment and reinvested.  Other program income shall be distributed to operating reserve accounts after the end of year reconciling calculation.

 VII.       Such other operational rules as the Endowment Committee shall find useful may be established, provided that they do not conflict with this Statement.

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 Secretary, Board of Trustees of TCC                        date adopted