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Our Endowment Funds continued:
Last week we had a peak at what funds make up our endowment.This week, we’d like to give you a scenario of what would happen if you donated $100,000 to the church in your will. If you gave the funds as unrestricted, 80% would go into the general endowment, 10% would go into the Memorial Reserve Fund and 10% would go into the Emergency Reserve Fund.
The general endowment contribution to our operating budget is currently 24% of our income. We spend 5% of a 3-year rolling average to come up with the annual figure.
The Memorial Reserve Fund is used for major facility maintenance and improvements, functioning as a capital reserve. Currently the balance is $2,322. Our current policy is to keep the balance at $30K. In the last 5 years, we have averaged spending $100,000 a year on facility maintenance.
The Emergency Reserve Fund is used to absorb operating budget surpluses when they occur and then cover deficits when they happen. Currently the balance is $67K, which is too low to cover 3 months of operating expenses, an industry guideline.
Of course, you could also designate your donation to one of our restricted funds. More about those next time.
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