Donor Designated Funds Policy

St. Luke's Episcopal Church Durham, NC

A separate and designated fund within the Heritage Fund may be established for gifts in the amount of $25,000 or more.   These assets are merged with other assets of the Heritage Fund for investment purposes, but the identity and designated purpose of each fund is preserved individually.

Any donor-designated fund within the Heritage Fund must be approved, per the St. Luke's Gift Acceptance Policy.  Upon approval the new donor-designated named fund is established effective as of the date both receipt of the donation and investment is confirmed by the administrator/custodian of the Heritage Fund.

Income, realized gains or losses, and unrealized gains or losses are allocated quarterly to each fund based on its market value relative to the total market value of the Heritage Fund at the end of the previous quarter.  New gifts are then added and withdrawals are subtracted to arrive at the new value of the designated fund on the last day of the quarter.

The funds made available for expenditure, under the formula defined in the Spending Rules Policy, are limited to the purposes specified in the designation.  Unless otherwise restricted by the donor, the Vestry may accumulate any unspent funds and allow them to remain in the fund, where they could be available for expenditure in subsequent years, as stipulated in the Spending Rules Policy.  These unspent funds increase the total market value of the designated fund and continue to accrue earnings until expended. 

The Heritage Fund Committee may agree to recommend the establishment of an individual fund with a lesser amount than $25,000, with the assurance of the donor(s) that the fund will be added to over time and that the $25,000 minimum level will be reached in a reasonable time.  Until such time as the minimum level is reached and a designated fund is established, no earnings will be available for expenditure.  The portion of the earnings attributed to that fund will be accrued and become part of the corpus to more readily move the fund to the $25,000 minimum level.

Adopted by action of the St. Luke’s Vestry this 11th day of May, 2009.