Endowment Fund

St. Paul’s Episcopal Church Endowment Fund

The current Endowment Fund at St. Paul’s has existed since the enabling resolution passed by the Vestry on Oct. 21, 2008. The Endowment Board first met during 2009. 

The Endowment Fund should be seen as a foundation that is under the church for stability. St. Paul’s Endowment is still growing with a goal of having a large enough unrestricted Endowment to provide regular support to St. Paul’s as needed. The church does not receive regular income from the Endowment fund. Withdrawals of funds are made as specifically requested by the Vestry and approved by the Endowment Board.

The total value of St. Paul’s Endowment is about $1.1 million and has three parts: 

  1. The restricted part, which is restricted by the donors and is about $400,000.  There are various specific uses for this money.
  2. The unrestricted part, which is about $600,000. 
  3. The disbursement account, which is currently about $25,000 and varies from time to time. The account holds funds that have been approved by the Endowment Fund Board for specific future expenses, so those funds are not subject to changes in the markets.  

The “Policies and Procedures of the Endowment Fund” allow four uses of the money: “(i) capital needs of St. Paul’s (ii) outreach ministries and grants (iii) seed money for new ministries and special one-time projects and (iv) such other purposes as are specifically designated by donors” to the fund. It is not intended for regular operating expenses or as a reserves fund. The “Policies and Procedures” undergo regular review. The latest revision can be found here.

The “Policies and Procedures” also specify parameters for gifts to the Endowment other than direct, unrestricted cash donations. St. Paul’s is expanding its Planned Giving Program. Gifts can be made both as part of an estate plan, life insurance planning, bequests or other gifts at death. Gifts can also be made while living, in ways that may be tax-advantaged such as various remainder trusts, regular direct gifts from IRAs, etc. It is easy to name St. Paul’s as a beneficiary or partial beneficiary on a life insurance policy, but in general, significant gifts to the Endowment should be made with the counsel of an attorney or accountant.

The management of the St. Paul’s Endowment Fund is overseen by the Endowment Board, church members appointed by the Vestry for 3-year terms. The Endowment Board has made the decision to hire Wells Fargo Advisors to manage the investments according to the policies of the church and the “prudent person philosophy.”