Perpetual
Fund
Wesley United Methodist Church
Distribution
Plan
(as
amended November 18, 2009)
NAME AND DESCRIPTION
The following Plan proposed by Perpetual Fund Committee was adopted by the members of Wesley United Methodist Church at a called Church Conference, July 17, 2005, replacing the Perpetual Fund Articles. The Plan was amended on October 29, 2006 at the annual Charge Conference and again at the annual Church Conference on November 18, 2009.
"The Perpetual Fund" shall be made up of named endowments that wish to have distributions placed in accordance with Perpetual Fund Distribution Plan in the Perpetual Fund distribution accounts.
The Margaret Martin estate, given to Wesley United Methodist Church as an undesignated gift, shall be known as the " Perpetual Endowment ." Gifts and contributions made from time to time by living or testamentary gifts, devises, bequests, and insurance and received by Wesley United Methodist Church that are for "the Perpetual Fund" shall be added to the Perpetual Endowment, unless they are specified to be separate named endowments that are designated for Perpetual Fund distribution.
SELECTION OF THE FUND MANAGER
AND INVESTMENT OF THE FUND
The Trustees of Wesley United Methodist Church, Shawnee, OK, shall sign a Charter with the Oklahoma United Methodist Foundation (OUMF) to establish an Endowment Program. The Trustees shall sign an endowment agreement for the Perpetual Fund Principal Account #6445 to create the Perpetual Endowment and enter into Management Agreements to set up distribution accounts for the Perpetual Fund.
MANAGEMENT OF THE FUND
The market value of the Principal Account #6445 in the Diversified Fund shall be placed in the Endowment Investment Fund on August 1, 2005. The annual distribution shall be based on the OUMF's annual declared endowment distribution rate. That money shall be made available for quarterly distributions to Perpetual Fund distribution accounts.
Money in the Perpetual Endowment accounts at the OUMF cannot be loaned to any person or entity, including Wesley United Methodist Church, Shawnee, OK. Perpetual Fund endowment accounts shall not be used as collateral for a loan. Repayment of loans through the OUMF shall be set up on a pre-authorized payment plan from Perpetual Fund distribution accounts.
APPORTIONMENTS WITHHOLDING
BEFORE DISTRIBUTIONS
When Perpetual Fund money from distributions is spent, some has an effect on our church's annual apportionments assigned by our Oklahoma Annual Conference and our South OKC District. So that the Perpetual Fund does not create an undo apportionments load on the congregation, quarterly distributions from the Principal Account will have an amount taken out before going to the distribution accounts, and sent separately to Shawnee, Wesley UMC, to be placed in the Apportionments designated account, to apply toward Conference and District apportionment payments.
An apportionments withholding rate has been calculated to reflect the overall effect the Perpetual Fund distributions have had on our apportionment total. This rate will be used as the rate of apportionments withholding, to be deducted from the quarterly distribution amount before it is divided among the distribution accounts, in accordance with the "Allocation of Distributed Monies" of this Distribution Plan.
The withholding rate shall be 6% (six percent).
The withholding procedure will begin with the first quarterly distribution of 2007.
ALLOCATION OF DISTRIBUTED MONIES
The Perpetual Fund Committee shall request that the quarterly distributions be moved to separate holding accounts at the OUMF: 60% to the Trustees Account administered by the Board of Trustees, to be used for capital expenditures to include all items otherwise deemed as normal maintenance and upkeep if the item is greater in cost than $1,000, capital improvements, a Future Building Fund, and a Trustees Emergency Account (10% of the total annual disbursement); 12.5% to the Missions Account administered by the Outreach Work Area; 10% to the New Programs Account administered by the Church Council; 10% for the Youth Account administered by the Youth Council; 7.5% for Children’s Account administered by the Children’s Council. Unused money from Trustees, New Programs, Youth, Children’s, Missions, and Emergency accounts shall accumulate in each separate holding account for the following year. All expenditures shall fall within the goals and priorities established by the Church Council.
10% of the total annual disbursement of the Fund shall be placed in a separate sub-account at the OUMF, the "Trustees Emergency Account," to accumulate and be used for major and unexpected failure of the building and capital equipment. This emergency account is, therefore, part of the 60% Trustees Account disbursement, and shall have a $50,000 ceiling. Amounts in excess shall flow to the Trustees Account.
Missions Account money specifically shall not be used for salaries.
Each new program receiving New Programs Account money (which may include salaries) shall be eligible for support by the Fund for five years.
The Children’s Account and Youth Account may be available for any approved children or youth activities. They may also be used to subsidize salaries for children and/or youth ministries’ staff.
(lined-out text and chart temporarily replaced for 2010 calendar year)
The 2010 quarterly distributions to the Perpetual Fund Distribution Plan for calendar year 2010 will be placed in the Administrative Council Reserve Account #6457. The Administrative Council will make decisions for the Administrative Council Reserve Account. This procedure will be temporary and for one year. The 2011 Perpetual Fund Distribution Plan will revert back to the distribution plan in place that was last amended on 10/29/2006.
- Temporary amendment dopted at annual Church Conference on November 18, 2009
FUND DISBURSEMENT RESTRICTIONS
The disbursements of the Perpetual Fund shall not be used for expenses/programs we do not support in our mission as a Church, currently established program budgets, and apportionments or benevolences. The disbursements of the Perpetual Fund Missions account shall not be used for salaries.
(lined-out text temporarily deleted for 2010 calendar year)
CHANGE PROCEDURE
The Perpetual Fund Distribution Plan can be changed with a two-thirds (2/3) majority vote of a Charge/Church Conference.