Capon Bridge UMC

Glenn Eanes is the Chair of the Finance Committee of Capon Bridge United Methodist Church in the Potomac Highlands District. He called our office with a problem we regularly see. His church had a long-term certificate of deposit (CD) that was earning a good interest rate. It was reaching maturity, and the bank was offering drastically lower interest on a renewal. He asked what the Foundation could offer.Capon Bridge UMC

Many churches find that a custodial account with the United Methodist Foundation is a good alternative to a CD. While a CD offers a guaranteed interest rate, the rates are generally low. Moreover, the principal is committed for the term of the CD. If the church needed to make a withdrawal, it would incur a penalty. 

In contrast, with a custodial account at the United Methodist Foundation, the total market value of the account is available at any time. There is no maturity date; there are no transaction fees; there are no penalties. 

Glenn invited Jeff and Kim to make a presentation to the rest of the Committee. The committee found that investing through the Foundation made good stewardship sense for a couple of reasons. First, they could garner a better investment return over time than they received through the CD. They were willing to give up the “guarantee” of the CD because they understand that, in the long-run, a balanced portfolio has always outperformed guaranteed CD rates. See this link to our historical returns.

Second, they liked the idea that the Foundation practices sustainable investing. The church’s funds would not be invested in enterprises that are contrary to their Christian principles, such as alcohol, tobacco, weapons, gambling, pornography, and private prisons. They were pleased that their funds would be invested in companies that have a commitment to the environment, social values, and good corporate governance. 

The Foundation offers reasonable investment returns with low fees. Consider learning more about how we can assist your church.