Spending Rules Policy

 St. Luke’s Episcopal ChurchDurham, NC

Allocations of funds available for distribution from the Heritage Fund will be made in two general ways: 

  1. Upon the recommendation by the Heritage Fund Committee and written request of the Vestry, funds may be transferred to the parish treasurer for those uses which conform to the purposes and restrictions incorporated in the enabling resolution adopted by the Vestry on May 11, 2009.
  2. As set forth in this enabling Vestry resolution, the Heritage Fund Committee members may obligate monies for general expenses incident to the management and administration of the Fund.  Extraordinary initiatives contemplated by the Committee to be undertaken for Heritage Fund development will be approved by the Vestry before implementation.

 

Expendable funds will be determined on the basis of a total return principle and will not be dependent upon income generated through interest or dividends.  The funds available for distribution during any one year will be limited to 4% of the market value of the corpus that is based on a three-year rolling average, or, if applicable, the formula for income distribution recommended by the selected custodian/professional investment managers.  The market value for this purpose will be taken net of the fees for investment management.  

All other expenditures, whether in categories 1) or 2) above, will be taken from funds available for distribution. 

The normal percentage of the corpus to be made available shall be communicated to the Vestry each year by the Heritage Fund Committee.  In so doing, market performance of the portfolio will be an important consideration.  However, it will be the goal of the Committee to grow, or at least maintain, the purchasing power of the Fund, taking inflationary effects into account. 

Any unexpended funds from those available for distribution in a given year will be accrued and will continue to be considered "available for distribution" in subsequent years, unless otherwise designated by action of the Heritage Fund Committee, with the approval of the Vestry. 

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