Investment & Gifts Policies

These important policies provide guidance and direction in the Foundation’s work as a fiduciary.

Investment Policies

Our Investment Policy Statement outlines and defines responsibilities and guidelines for the investment of assets under Foundation management.  Sections of the statement define the responsibilities of the Foundation Board of Directors, the Investment Consultant, Custodian and Investment Managers.

Guiding Principles

The Foundation’s investment management policy has three guiding principles:

  • Preservation of Capital
  • Risk Aversion
  • Adherence to Investment Discipline

 Social Responsibility

The Foundation takes seriously its role as a leader in Christian stewardship for United Methodists in northern Illinois. It follows socially responsible investment practices with the funds under its management. The social screening guidelines established by the General Board of Pensions is used by the Foundation.

Investment Objectives and Goals

The Foundation’s investment strategy emphasizes total return. The objectives for investment assets are to:

  • Preserve purchasing power
  • Achieve a balanced return of current income and growth of principal

 Investment Benchmarks

  • Achieve returns in excess of the rate of inflation over the investment horizon to maintain purchasing power.
  • Meet or exceed the market index, or blended market, agreed upon by the Board of Directors that most closely corresponds to the style of investment management.
  • Total Fund benchmarks are 60% S&P500/ 40% Barclay’s Aggregate Bond Index and 60% MSCI ACWI/40% Barclays Aggregate Bond Index. Individual asset class benchmarks are defined in the regular performance report provided by the Foundation’s investment consultant,  Mercer Investment Consulting.

Planned Giving Program Policies

This Planned Giving and Gifts Policy statement describes the Planned Giving Program of the Foundation, established to encourage lifelong generosity among United Methodists to local churches and church-related agencies.

Planned Giving Program Objectives

The program objectives are as follows:

  • To provide an organized effort to secure commitments of estate gifts;
  • To assist individuals who wish to make charitable gifts to United Methodist churches or agencies from their accumulated assets, and
  • To provide technical assistance with planned giving programs in local churches and United Methodist agencies.

Guidelines Governing Planned Giving Instruments

Detailed descriptions of various planned giving strategies and the Foundation’s role in administering and stewarding these gifts are outlined. The gift acceptance policy establishes due diligence, accurate accounting, reporting and administration of the assets while honoring the intent of the donor and offering protections to Foundation staff and volunteers.