Endowment Fund Task Force

Charge From the Standing Committee

(Revised Draft, 4-6-2008)

Background

The WUS is partially financed by the earnings of a collection of endowment trust funds that are directly managed by the WUS.  In simple terms, we have approximately $2.1 million in an “unrestricted” trust fund that can be used for any purpose, and a collection of approximately 20 “restricted” trust funds whose uses are restricted by guidelines specified by the donors.  The restricted funds total approximately $470,000.  For the purposes of this charge, we will refer to the entire collection as “the endowment.”

At present the endowment is managed on a volunteer basis by three trustees who are members of the WUS.  After his recent assessment visit, one of Wayne Clark’s recommendations was that the WUS consider developing written procedures and investment guidelines for the endowment, and consider using an outside investment manager.  The purpose of this task force is to respond to those recommendations.

It should be noted that the WUS is also the beneficiary of two outside trust funds over which the WUS has no management control.  These two trusts, the Meyer and Downs trusts, are not included within the scope of this charge.

Scope of Work

1)      As general background, review pages 73-75 and 141-147 in Wayne Clark’s book titled “Beyond Fundraising.”  These pages discuss endowment funds.  Also review the UUA “Endowment Fund Guide” by Marcy Bailey Adams.

2)      Meet with the current trustees to discuss how the endowment is presently invested and managed.  Solicit any suggestions the trustees have for ways in which the management of the endowment could be simplified or improved.

3)      Conduct telephone interviews with representatives of at least three other Unitarian churches that have endowments of at least $1 million.  Determine how their endowments are managed, and solicit any suggestions or advice they have to offer.

4)      Investigate the option of using the endowment management services offered by the UUA.

5)      Evaluate the option of restricting the endowment investments to “socially responsible” investments that reflect the values of the WUS.

Deliverables

1)      Review the defining documents that presently govern the management of the endowment, and describe how the present documents define the relationships among the Standing Committee, the Trustees, and the Congregation regarding the management and use of the endowment.  Identify any recommended changes or additions to these documents.

2)      Provide a brief written narrative of how the WUS endowment is presently invested and managed.  Compare this to other arrangements that could be considered.  Factors to be included in the comparison should include, but are not limited to:

·         Amount of time and effort required on the part of the trustees

·         Ease of bookkeeping and reporting

·         Historical data on investment returns

·         Estimated annual costs and fees

3)      Provide any other information or recommendations that the Endowment Task Force feels would be helpful to the Standing Committee in making decisions about the management and use of the Endowment.

Time Frame

It is the Standing Committee’s intention that the Endowment Task Force will serve for a limited period of time and will be dissolved after the above tasks and deliverables have been completed.  The goal is to make it easier for members of the congregation to volunteer for this activity without having to make a long term commitment.

With this in mind, the Standing Committee seeks a final report within three months after the formation of the Task Force.  This period can be extended upon request if the Task Force feels that additional time is needed.