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Acorn Endowment Fund
What is the function of the Acorn Endowment Fund?
- Offers an opportunity for those who support the ministries of MPC to share their financial blessings with the assurance that their gifts will maintain long-term viability
- Provides yearly resources for ministries to innovate and meet ever-changing needs
- Supplies a monetary incentive for creative projects and solutions as directed by the Session
- Emphasizes the importance and immediacy of MPC’s outreach and mission
- Makes it possible to leave sizeable gifts that might not be possible during a lifetime
- Presents an opportunity to honor a loved one or to celebrate an event in the life of MPC
How does the Acorn Endowment Fund work?
- Gifts are combined with all existing donations to the AEF and invested conservatively
- Gifts are not meant to replace annual stewardship pledges
- Value of accumulated gifts (corpus) will never be withdrawn (invaded)
- Gifts will continue to produce meaningful income via investment earnings
- Only administrative fees and investment management fees, which will be minimal, will be deducted
- Investment earnings are not reinvested into the fund; growth will be accomplished by faithful giving
How are Acorn Endowment Funds distributed?
- Distribution is under direction of the Session
- Initial distribution will not be made until fund reaches amount of $50,000
Why are the AEF investment earnings not included in the church’s annual operating budget revenue?
- To help ensure the congregation’s faithful response to annual stewardship
- Because its aim is to challenge, encourage, and allow MPC to reach beyond what its annual budget is capable of providing
Why not reinvest investment earnings to grow the endowment?
- Since all gifts to the AEF are considered gifts for the glory of God, the sooner their fruits are put to use, the better
- Immediate application of funds may encourage more donations
- Immediate access to funds is key to timely response
What is the AEF’s investment philosophy?
- To safeguard the principal while producing meaningful annual cash payouts
- Growth of the fund corpus is through continued donations
- Speculative or risky investments are prohibited
What are the financial goals of the AEF?
- Immediate goal is to accumulate $50,000 to begin initial distribution of about $2,000
- Long-term goal is to reach $1,000,000 in ten years, which could generate up to $40,000 per year
When will distributions be announced?
- January 31 of each year, allowing Session to plan for projects after annual budget has been decided, the sum to be recorded in MPC’s end-of-year report for the congregation
What if there are no earnings, or the corpus loses value in a year?
- No distribution will be made without investment earnings; distributions may resume the following year
- Since investment strategy stresses conservative, balanced, fixed-rate investing, this scenario should be rare
- In the rare case of a loss of value in the corpus, distributions may be resumed once earnings exist, resetting corpus value and calculating earnings based on current value
- Board will monitor safety and progress of fund
Who decides how the AEF distribution is used?
- Session determines, in compliance with the AEF resolution, how fund will be used
In case of emergency, can the corpus be invaded for other purposes?
- No
- AEF gifts are protected so that their earnings may be used each year
- In the rare instance in which the corpus of any non-profit endowment is legally invaded, legal proceedings are required
Oak Tree Capital Reserve Fund
What is the rationale behind creating the Oak Tree Capital Reserve Fund?
- For maintaining and upgrading our church facility
- For the inevitable large expenses as well as unpredicted emergencies
How does the Oak Tree Capital Reserve Fund work?
- All donated gifts plus all their earnings may be used as needed
- Until needed, these monies will be carefully invested
- Session directs the use of these funds to support major maintenance projects
What is the goal of the Oak Tree Capital Reserve Fund?
- Anticipating the necessity of major maintenance and replacements within the next five years, the sum of $250,000 is the short-term goal
General Questions
How do I make a gift to either Legacy fund?
- By giving cash or transferring assets, clearly designating the intended fund
- Through giving annual required distributions from IRA
- By designating deferred gifts such as wills, life estates, trusts, or annuities to either fund
What type or size donation can be given?
- Cash, or any items of value—stocks, mutual funds, real estate, jewelry, collectibles, art, vehicles, royalties, IRA distributions, annuities—that can be transformed into cash
- Investment earnings from donor-advised funds, trust-named beneficiaries, and bequests through wills
- Gifts to honor, celebrate, or memorialize
- Periodic gifts, such as monthly or quarterly donations
- Online giving that rewards non-profit donations
- Gifts of all sizes are welcome
- Note: Gifts will be combined with all other investments once deposited in the fund, and therefore will not be tracked as its own entity unless specified by Session
How will gifts to these Legacy funds be publicized?
- Donor names and honoree or memorial names—but not the amount given—will be publicly acknowledged
- Donors may choose to remain anonymous
- Donors become honorary members of the Legacy Circle, an informal recognition program designed to express appreciation to donors
May I restrict what my donations are used for?
- Restricted gifts will not be accepted into the Acorn Endowment Fund
- Gifts to the Oak Tree Capital Reserve Fund may be restricted only with Session approval with restrictions honored as much as is feasibly possible
- Restricted gifts may be deposited into other church accounts with Session approval
How will these two funds be managed?
- By a committee of five board members, comprised of a Moderator of Session, the MPC treasurer, and three at-large members
- At-large members may serve up to two consecutive three-year terms; a one-year hiatus is required before serving again
- Board will report quarterly to Session and annually to congregation
- Any unusual, non-traditional, complicated, or restricted gifts will be referred to Session for approval
- Wells-Fargo advisors will manage funds with board oversight; this arrangement will be reviewed periodically
How are the rules for either fund to be amended?
- By considering both the sacred covenant between MPC and the donor, and the original intent of the resolution
- Amendments must be passed by 75% of the Session at two consecutive stated Session meetings
- The established rule of ‘non-invasion of the corpus’ in the Acorn Endowment Fund cannot be changed
What happens if MPC’s status changes?
- If MPC merges with another church, the funds will accompany MPC
- If MPC splits, the funds remain with the entity named MPC
- If MPC dissolves, the funds become the property of the Shenandoah Presbytery PC(USA)
- If MPC leaves the PC(USA), the funds become part of the total assets, along with real property and personal property—for purposes of an exit valuation—of the Shenandoah Presbytery PC(USA)
- In all cases, funds and investment earnings will continue to be applied as described in the resolution
How can I make a periodic gift or designation in my will or trust?
- By specifying that your gift—e.g., a specific dollar amount, a periodic disbursement, a percentage of your estate, or the residue of your estate after your beneficiaries have received their bequests—be designated for either Legacy fund.
- In all cases, consult your financial advisor and an attorney concerning your wishes
- Massanutten Presbyterian Church is a corporation (federal tax identification number 54-1117956) that allows for certain tax benefits for gifts. Please include this ID number in any estate documents.
I have more questions. Who should I speak with?
- Ask either pastor, the church treasurer, or any member of the MPC Legacy board.