LORD OF LIFE MISSION ENDOWMENT FUNDS

STATEMENT OF PURPOSE

Lord of Life has established three mission endowment funds (Funds) to be maintained in perpetuity.  The purpose of these Funds is to provide an investment in the long-range capability of this congregation to glorify God and further his works by providing assistance to and expansion of mission programs as follows:

  1. The Gebert Mission in Outreach Fund – established in honor of Barbara and Don Gebert to provide financial assistance to mission programs outside of Lord of Life and support social outreach activities of the ELCA and in the greater Houston area.
  2. The Mission in Ministry Fund – to provide financial assistance to special projects or programs inside and  outside Lord of Life in music, worship, education or for children and youth.
  3. The Mission in Facilities Support – to provide funds for capital improvements and projects, major repairs or debt reduction for Lord of Life facilities to support all missions of the church.

The programs and projects to be funded are solely for activities in addition to normal operating budget items and any other normal outreach programs of Lord of Life. 

MANAGEMENT – ENDOWMENT FUNDS ADMINISTRATION COMMITTEE

The investment, monitoring and accounting of the Funds’ assets and a determination of monies available for distribution shall be administered by a committee of five voting members (the Administration Committee) and one non-voting member as follows:

  1. Chairman of the Lord of Life Finance Committee
  2. Treasurer of the Church
  3. One member of the Lord of Life Congregational Council appointed and/or removed by the President of the Council
  4. Two members of the congregation appointed and/or removed by the Lord of Life Congregational Council
  5. Chairman of the Stewardship Committee (non-voting)

The committee will serve from April 1st of any year to March 31st of the subsequent year.  There is no limit on the number of terms a member may serve.  The committee will elect a chairperson and will rule by majority.  Vacancies on the committee will be filled promptly to ensure continuity.

MANAGEMENT – ENDOWMENT FUNDS DISTRIBUTIONS COMMITTEES

All distributions from the Funds shall be approved by the Congregational Council.  The identification of programs and recommendations for funding shall be made to the Council by the Distribution Committees constituted as follows:

  1. The Gebert Mission in Outreach Fund – The Administration Committee plus the Chairperson of the Lord of Life Social Ministry Committee
  2. The Mission in Ministry Fund – The Administration Committee plus the Chairperson of the Lord of Life Worship and Music and Faith Formation Committees.
  3. The Mission in Facilities Support – The Administration Committee plus the Chairperson of the Lord of Life Property Committee.

Identification of programs and missions for proposed funding will be made by the Committees of the Congregation for each Chairperson serving on the Distribution Committees named above.  The Distribution Committees may develop additional grant application and approval procedures, subject to approval by the Administration Committee and Congregational Council.

 FUNDING

All gifts to each Fund will become part of the permanent endowment of each Fund.  It is the intent that these endowments will be funded by memorials, bequests, gifts of property, securities or cash, and from other estate planning, including as designated beneficiaries of insurance policies or retirement plan assets.  This funding may be supplemented from time to time with other fund raising activities as determined by the Administration or other ad hoc Committees.

All proposed gifts of real or tangible personal property are subject to review and confirmation by the Administration Committee and Congregational Council prior to acceptance.

The Administration Committee shall liaise with the Stewardship Committee of the Congregation no less than annually to ensure the Funds are incorporated in and communicated as a component of the stewardship opportunities for the congregation.

STATEMENT OF INVESTMENT POLICY

The primary investment objective of the Funds is to prudently invest the corpus of the Funds in a conservative fashion, using, but not limited to, common stocks, mutual funds, REITS, ETFs, government and corporate bonds and certificates of deposit.  A professional investment advisor will be engaged to make recommendations for specific investments to the Administration Committee. 

The monies in the Funds may be pooled for purposes of investment; however detailed records segregating the historic dollar value, earnings and appreciation in each Fund will be maintained.  The historic dollar value of each fund shall be the sum of the values of contributions to each Fund as of the date of contribution.  The historic dollar value of the Gebert Fund shall include the fair market value of the Gebert Fund assets as of the end of the month preceding any pooling of funds plus the historic dollar value of subsequent designated contributions.  Earnings and appreciation of pooled investments shall be prorated among the Funds based on relative average historic dollar value balances for each Fund for each calendar year.

ASSET ALLOCATION PARAMETERS

Cash/cash equivalents – Cash balances will be kept at a minimum and deposited in Federally insured deposits, checking or money market accounts, or money market mutual funds.  Assets shall be allocated within the following parameters:

Cash/cash equivalents

0%-15%

Common stock/equity funds

25%-80%

REITS

0%-20%

Bonds/bond funds

25%-80%

DISTRIBUTION GUIDELINES

To permanently maintain the Funds, the historic dollar value as defined above of all contributions shall be retained and shall not be distributed from the Funds except by a two thirds majority vote of the Congregation.

Following the close of each calendar year the Administration Committee shall determine the available distributable monies in respect of that year for each Fund.  Distributable monies shall be the greater of (1) the market value of the Funds’ investments in excess of the historic dollar value of each Fund or (2) the actual realized income (interest and dividends) of the investments in each Fund as of the end of each calendar year.

The Gebert Mission Outreach Fund shall distribute all available monies each year.  Recommendations for distributions shall be made by April 30

th of the year following the end of each calendar year.  At its discretion the Distribution Committee may reserve a portion of the total distributable funds beyond April 30th for emergency situations, however all distributable monies in respect of a calendar year shall be paid out prior to December 1st

of the subsequent year.
Distributable monies from the Mission in Ministry and Mission in Facilities Support Funds are not required to be distributed each year and may remain invested until a program is determined to be funded.  Recommendations for distributions and a report of distributable money balances recommended to be retained and any projects anticipated to be funded will be made by the Distribution Committees to the Congregational Council for approval by April 30

th

of the year following the end of each calendar year.    Distributions may occur following the close of or during the year upon Congregational Council approval, but in no event shall monies in excess of actual realized income for any year be distributed before the end of that year.