CHARTER OF THE ENDOWMENT and MEMORIAL COMMITTEE

ARTICLE ONE

THE PURPOSE:

The Endowment and Memorial Committee of Aldersgate United Methodist Church, is established for the purpose of providing members and friends the opportunity to make charitable gifts to Aldersgate United Methodist Church.

ARTICLE TWO

ADMINISTRATION:

A. Endowment and Memorial funds shall be administered by the Endowment and Memorial Committee in accordance with the prevailing United Methodist Book of Discipline.

B. The funds managed by the Committee shall be audited annually in accordance with the procedures prescribed in The Book of Discipline. The Committee shall make reports to the Finance Committee twice a year on their investments.

C. The Committee shall be accountable to the Church/Charge Conference for the proper application of the income of all funds as specified by the donors.

D. The Committee shall act as the legal representative of the Church/Charge Conference and all decisions or actions shall be in accordance with the vote of the Church/Charge Conference.

ARTICLE THREE

PRIVATE ENDOWED FUNDS:

A. Gifts and bequests received as endowments shall have the following investment objectives:

1. Conservation of principal for the effective maintenance of purchasing power;

2. Regular income at a reasonable rate;

3. Growth of income and principal over and above that necessary to offset increases in the cost of living (inflation); and

4. Investment of assets in institutions, companies, corporations, or funds which make a positive contribution toward the realization of the goals outlined in the Social Principles of the United Methodist Church.

B. The assets of the Endowment Fund shall be invested in one or more funds administered by the United Methodist Foundation of New England (the "Foundation"), its successors representing the Annual Conference or Area to which Aldersgate UMC belongs or other United Methodist investment opportunities, pursuant to Article Four. When additions are made, the Committee shall determine how the additions shall be allocated among the funds and the Committee may change the allocation from time to time.

C. The Committee shall maintain a permanent record of the specific purpose of each endowment. The Committee may combine into a single account all gifts having the same restrictions on the use of income, and may maintain a single account for all gifts not having any restriction on the use of income. The Committee shall keep appropriate permanent records of the identity of donors of bequests and special gifts and of any persons for whom a gift is made.

D. Use of any investment agency other than the United Methodist Foundation of New England or another United Methodist investment opportunity shall be approved by the governing board of the Aldersgate United Methodist Church. If any assets are transferred for investment with another agency, the Committee shall, in consultation with the Church/Charge Conference, establish policies to ensure that investments will make a positive contribution toward the realization of the goals outlined in the Social Principles of The United Methodist Church.

E. If the laws of the state permit expenditure of the principal of restricted endowments, then in addition to any approval for such action required by state law, approval must be obtained from the Church/Charge Conference by a two-thirds vote of the members present and voting at a meeting duly called for such purpose at which a quorum is present.

F. Having in mind that overly-detailed restrictions on purposes may be impractical to administer, prospective donors shall be encouraged to add their gifts to consolidated accounts permitting the use of the income for broadly defined programs of the church including, but not limited to, the following:

Endowment Fund: A fund in which principal is protected and disbursements are limited to income and growth as appropriate to maintain the fund value, after the Fund reaches a value of $100,000..

1. Additional accounts may be established from time to time by the Committee, and accounts for more restricted purposes may be established by the Committee with the consent of the Church/Charge Conference.

2. The Church/Charge Conference may from time to time specify the minimum amount that may be allocated to any account restricted as to income.

ARTICLE FOUR

PRIVATE MEMORIAL AND LIVING MEMORIAL FUNDS

A. The Memorial and Living Memorial Fund’s investment objectives are:

1. Regular income at a reasonable rate

2. Investment of assets in institutions, companies, corporations, or funds which make a positive contribution toward the realization of the goals outlined in the Social Principles of the United Methodist Church.

B. The assets of the Memorial and Living Memorial Fund shall be invested in one or more funds administered by the United Methodist Foundation of New England (the "Foundation"), its successors representing the Annual Conference or Area to which this church belongs or other investment opportunities. When additions are made to the Memorial and Living Memorial Fund, the Committee shall determine how the additions shall be allocated among the funds and the Committee may change the allocation from time to time.

C. The Committee shall maintain a permanent record of each account that has a restriction on the use of the gift. The Committee may combine into a single account all gifts having the same restrictions and may maintain a single account for all gifts not having any restriction. The Committee shall keep appropriate permanent records of the identity of donors and for whom a gift is made.

D. The intent of the Memorial and Living Memorial Fund is to provide people an opportunity to honor their loved ones in death and in life. These donations are intended to be used within a specific time frame for a variety of purposes within the Aldersgate Church. All donations become the property of Aldersgate United Methodist Church, and may be used at the discretion of the Committee in consultation with the governing body of the church. If a memorial gift is not used within two years of its inception, it may be transferred to the Endowment Fund and so noted in the Annual Church Report.

ARTICLE FIVE

LIABILITY OF TRUSTEES AND MEMBERS OF THE COMMITTEE:

No member of the Committee shall be liable for any investment made in any fund administered by an outside organization.

ARTICLE SIX

MERGER, CONSOLIDATION OR DISSOLUTION OF ALDERSGATE UNITED METHODIST CHURCH:

If at any time Aldersgate United Methodist Church is lawfully merged or consolidated with any other church, all the provisions hereof in respect to the Fund shall be deemed to have been made on behalf of the merged or consolidated church which shall be obligated to administer the same in all respects and in accordance with the terms thereto. If Aldersgate United Methodist Church should ever be dissolved without any lawful successor thereof, the Fund, including both principal and interest to date, this document shall empower the United Methodist Foundation of New England to continue distribution of income while maintaining the preservation of endowment principal and authorizing a successor United Methodist Church or institution to assume the powers afforded to Aldersgate United Methodist Church.

ARTICLE SEVEN

AMENDMENTS

The provisions of Articles One and Five shall constitute a contract between Aldersgate United Methodist Church and the respective donors. Any amendment of Article One shall apply only to gifts made after the effective date of the amendment.

Subject to the foregoing, this Charter may be amended by a two-thirds vote of the members present and voting at a Church/Charge conference duly called for such purpose.

All proposed amendments must conform to the current edition of The Book of Discipline.

THE UNDERSIGNED CERTIFY THAT THIS CHARTER WAS AMENDED BY A VOTE OF:

____FOR ____AGAINST ____ABSTAINED

AT A DULY CALLED MEETING OF THE CHARGE CONFERENCE OF ALDERSGATE UNITED METHODIST CHURCH HELD AT THE CHURCH ON ______________________________ (date).

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Recording Secretary

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Pastor