1. Definition of Endowment Fund

a. The “Endowment Fund” (hereinafter called the “FUND”) is a separate Board-designated fund into which certain gifts and bequests are deposited.

b. The Planned-Giving/Endowment Committee (hereafter called the PGEC) shall be responsible for promoting planned giving and other methods of contributing to the FUND. Promotional activities may include publicity and education about the FUND program, and recognition of FUND contributors. The cost of these promotional activities may be paid from the FUND.

2. Management of the FUND

a. The Board of Directors shall provide broad oversight of the FUND and the Planned Giving/Endowment Committee.

b. Management of the FUND shall be the responsibility of a Board-appointed PGEC consisting of five members serving terms of three years each, except that some members may be appointed to shorter terms in order to have at least two terms expiring each year. A quorum shall consist of three members. No more than two active members of the Finance Committee will be eligible to serve.

c. Each member of the PGEC shall lead by example. Within their first year on the committee, if they have not already done so, each will make his/her own planned giving commitment to the FUND.

d. The PGEC shall elect from its members, a Chair and Recording Secretary.

1.) The chair shall be the principal liaison with the Board.

2.) The recording secretary shall maintain complete and accurate minutes of all meetings of the PGEC and supply a copy thereof to each member of the PGEC, the Finance Committee and the Board of Trustees.

e. The PGEC shall meet at least quarterly, and more frequently if necessary to properly manage and promote the FUND.

f. The PGEC shall make a formal report to the Board on a quarterly basis and to the congregation at each annual meeting.

g. With the approval of the Board the PGEC, at the expense of the FUND, may engage such professional services as it deems appropriate and in the best interest of the FUND.

h. Members of the PGEC shall not be liable for any losses which may be incurred upon investments of the assets of the FUND except to the extent such losses shall have been caused by bad faith or gross negligence.

i. All FUND assets are to be held in the name of the Unitarian Universalist Church in Fullerton in account(s) separate from other church assets.

3. Statement of Investment Policy

a. It shall be the investment policy of the FUND to invest its assets and to seek the maximum possible long-term total investment return (including investment income received and realized and unrealized appreciation and depreciation) that is consistent with a prudent level of long-term investment risk. Care will be taken to invest in a socially responsible manner.

b. To the extent feasible the FUND shall at all times be fully invested in equities.

c. The FUND’s investments shall be diversified by investment sector and issuer. Not more than 10 percent of FUND assets shall be invested in the securities of a single issuer. Nevertheless, any or all plan assets may be invested in one or more mutual funds, provided that the underlying investments of such mutual fund or funds satisfy this 10 percent requirement.

d. Investment expenses will be minimized to the extent possible consistent with the above objectives or as deemed prudent.

e. Except as otherwise provided herein, all assets shall be invested in one or more mutual funds selected by the PGEC.

f. UUCF may maintain a dedicated brokerage account for the purpose of receiving gifts and bequests of securities into the FUND and holding such securities until they are sold to be invested as outlined above. The PGEC may direct that a minimum amount of assets be held in such account in order to satisfy any minimum requirements to maintain such account or to reduce or eliminate the account fees.

g. Whenever a gift or bequest of securities is received in the FUND, such securities shall be sold as soon as it is feasible to do so, unless the PGEC determines that such sale is not in the best interest of the FUND.

4. FUND Revenue

a. Beginning January 1, 2009, all unrestricted bequests that are received by UUCF shall be deposited in the FUND account when they are received.

b. If any operating surplus occurs in the UUCF budget for a given year, the Board of Trustees may opt to allocate all or part of the surplus funds to the FUND.

c. The PGEC shall ordinarily accept any unrestricted gift or bequest to the FUND of cash or marketable securities. The PGEC shall, in consultation with the Board, have the full authority to decline any gift or bequest and any restrictions a donor may wish to place on the management of a donated asset.

5. Expenditures from the FUND

a. Transfers shall commence when the FUND December 31 balance reaches at least $25,000 and shall continue thereafter, as described below, regardless of the FUND account balance.

b. Thereafter, during the first 60 days of each calendar year a transfer shall be made to the Church’s operating funds from the interest, dividends and principal of the FUND equal to four percent (4%) of the market value of the FUND as of December 31 of the preceding calendar year, but not less than the amount of such transfer made during the preceding calendar year.

c. Except as provided above, in general, the principal of the FUND and its income designated for re-investment should be regarded as sacrosanct. Even in difficult budget years, these funds should not be invaded. However, in circumstances where the existence of UUCF or the execution of its core programs are, in the judgment of the Board, significantly threatened, the following steps may be taken in the order listed:

1. Appropriate all of the total investment return (including dividends, interest, and realized and unrealized appreciation and depreciation of the FUND during the preceding year) to the operating fund.

2. Authorize a “loan” to UUCF from the FUND principal. The terms of such loan, including interest rate and time frame for repayment, shall be set by the Board in consultation with the Finance Committee at the time of the loan. Such terms will be formalized by a written agreement.

3. Authorize the expenditure of the FUND principal without requiring repayment. In this case, an attempt should be made to limit the expenditure to no more than half of the FUND principal.

6. Disposition of or transfer of FUND assets

a. In the event that UUCF ceases to exist, disposition or transfer of the FUND shall be in conformity with the The Bylaws of UUCF.

7. Amendment of these PGEC Policies and Procedures

a. Be it resolved that any Amendment to these Policies and Procedures that will change, alter or amend the purpose for which the FUND is established shall be adopted by a two-thirds (2/3) vote of the members of the congregation present at an annual meeting called specifically for the purpose of amending these policies.