• 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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