Philanthropy is a spiritual act, an expression of caring for one’s fellow beings. It is a belief in the future, that the future can be good.
— Arthur Frantzreb

Investment & Gift Policies

Investment Policy Statement (PDF)
This policy statement outlines and defines responsibilities and guidelines for the investment of assets under Foundation management.

Responsibilities
These sections of the statement define the responsibilities of the Foundation Board of Directors, the Investment Consultant, Custodian and Investment Managers.

Investment Policy
The investment management policy discusses 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 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 Defined:

• Meet or exceed return of a balanced index reflecting the make-up of each fund, net of investment fees
• Total Fund benchmark is 60% S&P500/ 40% Barclay's Capital Aggregate.  For individual Fund benchmarks see Hammond's monthly report.

Investment Guidelines
The statement defines allowable assets for investment by asset class.  It also defines prohibited assets and prohibited investment transactions.  Asset allocation among various asset classes is defined.  Prudent diversification of securities is also discussed.  Limits are set to describe the maximum percentage of individual company or government agency securities.

Selection and Evaluation of Performance of Investment Managers
The process for selection of investment managers for Foundation assets and the regular performance review of managers is described in this section of the statement.

To access the full Investment Policy Statement, please click  here.

Planned Gifts Policy Statement (PDF)
This statement describes the Planned Giving Program of the Foundation, established to encourage the charitable giving of United Methodists to local churches and church-related agencies.

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
• To provide technical assistance with Planned Giving Programs in local churches and United Methodist agencies

Policies
Specific policies are described which protect the best interests of donors, the Foundation and its representatives and staff.

Guidelines Governing Planned Giving Instruments
Planned giving strategies and the guidelines and administration of the strategies is discussed.

Procedures for Establishing Planned Gifts
Procedures are outlined for the acceptance of various types of planned gifts to ensure due diligence, accurate accounting, reporting and administration of the assets.

To access the full Planned Gifts Policy, please click here (PDF).