Trustees Charter and Documents

CHARTER

First Parish Arlington – Trustees of the Trust Funds

Adopted April 2011; revised May 2021

Introduction (as revised in May 2021)

This Charter was adopted by the Trustees is April 2011 in order to place the First Parish congregation and future Trustees on notice that First Parish’s unrestricted endowed trust funds would be used to ensure the long term survival of First Parish and to that end the Trustees would restrict use of distributions from the unrestricted endowment to funding long-term capital projects relating to the building.

The COVID 19 pandemic and the terrible health, social and economic impacts of the pandemic have persuaded the trustees to re-evaluate the restrictions on use found in the original Charter. AOer all, short term emergencies from a pandemic or a severe recession could, unless mitigated, bring into question the survival of the church. Recognizing that the unrestricted endowment funds managed by the Trustees can serve to mitigate such impacts, the Trustees wish to modify the Charter to provide guidelines for addiBonal uses of the endowment during unexpected emergencies.

Purpose

The following statement of purpose was initially adopted in April 2011 and revised April 2021.

STATEMENT OF PURPOSE

Trustees of the Trust Funds of First Parish Unitarian Universalist of Arlington

The purpose of the trust funds is to ensure that over the long term First Parish Unitarian Universalist Church of Arlington (the “Church”) thrives and fully supports the Church community in realizing its goals. To accomplish this the following principles are considered by the Trustees in deciding how to invest funds and spend funds.

1. 1. Restricted funds managed by the Trustees must be distributed and used in accordance with restrictions as set by the donors.

1. 2. Under normal circumstances, the benchmark amount of the unrestricted trust funds’ may only be used for long-term capital projects. In addition, subject to the conditions of this Charter, the benchmark amount may be used to mitigate the financial effects of financial and operational emergencies. When supporting the Church during financial or operational emergencies the Trustees will work with the Parish Committee to agree on a plan for the restoration of the trust funds utilized in such event whether through congregational fund raising and pledges or a repayment schedule by the Church from operating funds over time.

1. 3. The benchmark amount is $1,677,202.00 which was the market value of the unrestricted General Trust Fund as of the end of the last fiscal year of the Church at June 30, 2020:

1. 4. The Trustees may, from time to time, modify the benchmark amount to maintain the purchasing power of the trust funds, to reflect donations to the trust funds and/or to reflect expenditures made in accordance with these purposes.

1. 5. Accumulated earnings and gains in excess of the benchmark amount may be disbursed when, in the judgment of the Trustees, it is prudent to do so. The Trustees take note that institutions with endowments often target returns of 4-5% (net of inflation) over a multiple year period. The Trustees will target disbursements to the Church from the endowment to be proportionally commensurate with actual returns on the endowment funds over time.

1. 6. The Trustees will encourage planned giving to the Church in keeping with their purpose to ensure the long-term survival of the Church.

Leadership and Membership

Trustees are elected to 3-year terms by vote at the Annual Meeting in May of each year. The Trustees must be members of First Parish Unitarian Universalist of Arlington. Trustees may be elected to two consecutive terms.

The chair or co-chairs of the commi^ee are chosen by the commi^ee members.

Specific Duties

• Determine the amounts that should be distributed to the Church each year and for what purposes consistent with the Statement of Purpose.
• Manage and invest the Trust Funds under the advice of a professional financial advisor selected by the Trustees and other assets under the fiduciary responsibility of the Trustees, including restricted and unrestricted trust funds and the contents of the vault.
• Organize and encourage planned giving to trust funds.
• Receive gifts of stock/pledges for Stewardship, facilitate transfer to church’s investment management firm, sale of stock and transfer back to church.
• Present annual reports at the First Parish annual meeting.
  

  Outcome Measurements

  The Trustees keep the following statistics, which are reported to the congregation in the annual report at the end of the church fiscal year:

  Endowment investment results compared to industry benchmarks Donations
  Endowment expenses
  Rate of return and growth of the endowment

  In addition, the Trustees monitor quarterly and annual reports from the financial advisor.

Annual Budget and Spending Authority

Fees and costs relating to management of the endowment funds are needed from such funds.

Reporting Relationships

The Trustees shall report in writing annually to the congregation in conjunction with the congregation’s customary annual reporting process. The Trustees provide investment results to the Parish Committee upon request.

Authorities Reserved to the Trustees

The Trustees are an independent body with a fiduciary duty to manage the endowment. The Trustees are responsible to the congregation per the bylaws of First Parish Unitarian Universalist of Arlington and are not supervised by, or under the direction of, any other committee, entity or individual within the church other than the congregation. The Trustees are audited by the church auditor.