Jesse Brake is the Treasurer of the Flemington United Methodist Church in the MonValley District. He contacted us because his church had a CD in the amount of $1,500.00 given to them many years ago with the restriction that the church could only spend the interest. They chose to cash it out because, as you are no doubt aware, interest rates are at an all-time low. He and the leadership of the church were interested in learning about the options The Foundation could offer as an alternative.
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.
Jesse invited Jeff Taylor to make a presentation to the rest of the Finance Committee. The committee found that investing through the Foundation made good stewardship sense for a couple of reasons. First, since this gift had been a long-term investment, 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. Click here for a chart showing our historical investment performance.
Second, they appreciated the flexibility The Foundation could offer in tailoring the account to fit their needs. In fact, during the meeting, they decided that they had another account they could invest as a reserve fund, where they would treat it as endowment but under certain circumstances the principal could be withdrawn. Read more about custodial accounts here.
Finally, they welcomed the concept of sustainable investing and appreciated that their 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. Explore sustainable investing at this link.
The Foundation offers reasonable investment returns with low fees. Consider learning more about how we can assist your church.
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.
Jesse invited Jeff Taylor to make a presentation to the rest of the Finance Committee. The committee found that investing through the Foundation made good stewardship sense for a couple of reasons. First, since this gift had been a long-term investment, 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. Click here for a chart showing our historical investment performance.
Second, they appreciated the flexibility The Foundation could offer in tailoring the account to fit their needs. In fact, during the meeting, they decided that they had another account they could invest as a reserve fund, where they would treat it as endowment but under certain circumstances the principal could be withdrawn. Read more about custodial accounts here.
Finally, they welcomed the concept of sustainable investing and appreciated that their 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. Explore sustainable investing at this link.
The Foundation offers reasonable investment returns with low fees. Consider learning more about how we can assist your church.