The St. Luke's Heritage Fund
For many people, annual gifts are often made from earned income or income from investments or retirement plans. Gifts to the Heritage Fund, or planned gifts in general, are usually made from assets, which are transferred during one's life or at death. The St. Luke's Heritage Fund (see text of the Enabling Resolution below on this page) has been established to accept gifts which can provide a reliable source of income to the Parish for generations to come. The Vestry intends the Fund to be managed in perpetuity as a true endowment, meaning the principal will not be invaded. Allocation of funds are found in Spending Rules Policy. Distributions from this fund will flow to the following areas:
Annual spending limits are recommended to the Vestry by the Heritage Fund Committee, with the goal to grow, or at least maintain, the purchasing power of the Fund, taking into account market performance and inflationary effects and to preserve principal. Gifts to The Heritage Fund are most welcome and can be made in a number of ways.
Enabling Resolution
Establishing The Heritage Fund, a General Endowment Fund for St. Luke’s Episcopal Church, Durham, NC
WHEREAS, Christian stewardship involves the faithful management of all of God’s gifts – time, talents, the created world and money, including accumulated, inherited and appreciated assets; and
WHEREAS, Christians can give to the work of the Church through a variety of gift vehicles in addition to cash and securities, including bequests in wills, charitable remainder trusts and other life income gifts, other trusts, life insurance policies, real estate, securities and other property; and
WHEREAS, it is the desire of this parish to encourage, receive and administer these gifts in a manner faithful to the loyalty and devotion to God expressed by the donors and in accord with the canons of the Episcopal Church and the Diocese of North Carolina and the policies of this parish:
THEREFORE BE IT RESOLVED, that this parish, through action of its Vestry, establishes a new and separate fund to be known as The St. Luke’s Heritage Fund (hereafter called the “FUND”) of St. Luke’s Episcopal Church, 1737 Hillandale Rd. Durham, NC 27705.
BE IT FURTHER RESOLVED that the purpose of the FUND is to enable the Parish to more completely fulfill its mission by developing its Christian-based ministries beyond what is possible through its annual operating funds, and therefore distributions from the FUND shall be limited to:
* Christian Education
* Clergy and Staff Enrichment* Mission and Outreach
* Music and Worship* Capital Improvement
* Rector’s Discretionary Fund
* Seed Money for New Ministries and Special One-Time Projects
* Such other purposes as are specifically designated by donors to the PARISH whose gifts are approved and included in the FUND;
BE IT FURTHER RESOLVED that the distributions from the FUND shall not be made to the operating budget of the PARISH except to fulfill the purposes described above;
BE IT FURTHER RESOLVED that a HERITAGE FUND COMMITTEE (hereafter called the “COMMITTEE”) be and is hereby established, which COMMITTEE shall provide oversight of the FUND and the composition and function of which shall be as set forth in the following Plan of Operation, as it may be amended from time to time.
1. Composition of the Heritage Fund Committee
The COMMITTEE shall consist of three (3) regular members, all of whom shall be members in good standing of St. Luke’s Episcopal Church; they shall be appointed by the vestry. Additionally, the Rector, Treasurer, and Senior Warden shall be ex-officio members of the COMMITTEE without vote. Except as herein limited, the term of each non permanent member shall be three (3) years. Upon adoption of this resolution, the Vestry shall appoint the following members as follows: one (1) member shall be appointed for a term of three (3) years, one (1) member for a term of two (2) years and one (1) member for a term of one (1) year. Thereafter, the Vestry shall appoint the new member for a term of three years.
2. Roles of the COMMITTEE
The COMMITTEE will make recommendations and oversee the selection of managers of the invested funds and distributions from the FUND in compliance with the approved Spending Rules Policy and in accordance with the purposes as defined in this resolution.
3. Frequency of Meetings
The COMMITTEE shall meet at least quarterly, or more frequently as deemed by it in the best interest of the FUND.
4. Quorum
A quorum shall consist of two (2) members. The affirmative vote of two (2) members shall be necessary to carry any motion or resolution.
5. Officers and Duties
The COMMITTEE shall elect from its membership a chairperson and a secretary. The chairperson, or member designated by the chairperson, shall preside at all COMMITTEE meetings. The secretary shall maintain complete and accurate minutes of all meetings of the COMMITTEE and supply a copy thereof to each member of the COMMITTEE. Each member shall keep a complete set of minutes to be delivered to his or her successor. The secretary shall also supply a copy of the minutes to the Vestry in a timely manner. The Treasurer of the Parish shall maintain complete and accurate books of account for the FUND. At the discretion of the Vestry, the books may be audited annually, or from time to time, by a certified public accountant or other qualified person. Such person shall not be a member of the COMMITTEE.
6. Reports
The COMMITTEE shall report quarterly to the Vestry, as outlined above, and, at each annual meeting of the congregation, shall render a full and complete account of the administration of the FUND during the preceding year.
7. Professional Counsel
The COMMITTEE, at the expense of the FUND, may provide for such auditing, professional counseling on investments or legal matters as it deems to be in the best interests of the FUND.
8. Investments
The FUND will be invested for the long term in a manner that provides reasonable risk-adjusted returns with the intent to protect principal. All funds will be invested in accordance with the investment guidelines established in the Investment Policy Statement(s) of the selected money manager(s), who will be recommended by the Heritage Fund Committee and approved by the Vestry.
9. Funds for Specific Purposes
At the discretion of the Vestry, the FUND may establish sub-funds for specific purposes. Also, donors may designate their gifts for a specific purpose; however, any donor-designated gifts must be approved by the Vestry and meet the requirements of the Donor Designated Funds Policy.
10. Liability of Fund Committee Members
Members of the COMMITTEE shall be liable for any acts or omissions committed by them (including losses which may be incurred upon the investments of the assets of the FUND) only to the extent that such acts or omissions involved intentional misconduct or malfeasance. Each member shall be liable only for his/her own intentional misconduct or malfeasance, and shall not be liable for the acts or omissions of any other members. No member shall engage in any self dealing or transactions with the FUND in which the member has direct or indirect financial interest and shall at all times refrain from any conduct in which his personal interests would conflict with the interest of the FUND.
11. Holding of Assets
All assets are to be held in the name of the Heritage Fund of St. Luke’s Episcopal Church, Durham, NC.
12. Acceptance of Gifts to the Heritage Fund
According to the Gift Acceptance Policy of St. Luke’s, if a gift of property other than cash or publicly traded securities is offered to the Heritage Fund, there will be conducted a careful review to determine whether the best interests of the congregation are served by accepting or rejecting the gift. Guidelines for conducting such a review are incorporated in the Gift Acceptance Policy. .
13. Distributions from the Fund
It is the intent of this resolution that the FUND shall be managed as a true endowment employing the objective that the principal shall not be invaded; however, distributions from the FUND shall be made utilizing a Spending Rules Policy that incorporates a designated percentage of the corpus that will be available for expenditure annually. The COMMITTEE shall formulate a policy defining the spending rules and protocols, with the approval of the Vestry, which will provide for the withdrawal and use of funds consistent with the stated purposes of the FUND as defined in the first section of this Resolution. No portion of the principal amount of the FUND shall be “borrowed,” including any “temporary usage” for other needs of the Parish.
14. Amendment of these resolutions
Any amendment to this Resolutions shall be adopted by a vote of at least two-thirds (2/3) of the membership of the Vestry at a regularly scheduled meeting or at a special meeting called specifically for the purpose of amending these Resolutions.
15. Disposition or transfer of FUND
In the event the PARISH ceases to exist, whether through merger, dissolution, or some other event, disposition or transfer of the FUND shall be at the discretion of the Vestry in conformity with the approved congregational constitution and in accord with diocesan canons and the Bishop of the Diocese of North Carolina and through consultation with the Episcopal Church Foundation to determine the manner in which Fund obligations will be met after the PARISH ceases to exist.
The foregoing resolutions are hereby ADOPTED by the Vestry this 11th day of May, 2009. St. Luke’s Episcopal Church, 1737 Hillandale Rd, .Durham, NC 27705