First United Methodist Church, Pearland Financial Stewardship Policy (Ministry Council Approved & made effective 01/17/2011)

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1 Statement of Goals First United Methodist Church, Pearland Financial Stewardship Policy (Ministry Council Approved & made effective 01/17/2011) FUMC Pearland, the Ministry Council and Finance Committee will promote financial stewardship in the following ways: Purpose 1. Encourage tithes and unrestricted giving toward the general budget 2. Stimulate major gifts and bequests to build the church s Permanent Endowment Fund 3. Maintain a minimal amount of designated funds, with support of these funds through above and beyond gifts This document establishes the policy of FUMC Pearland for the receipt, accounting and disbursement of designated funds and restricted gifts. The policy applies to gifts whether or not a specific purpose for the use of the gift has been specified. These funds are not included in the general budget that has been approved by the Ministry Council. Donations or restrictions on donations that are contrary to the ministry and mission of FUMC Pearland or that would violate IRS regulations on charitable donations will not be accepted. FUMC Pearland reserves the right to refuse any gift. It is the responsibility of the Finance Committee to implement this policy, with oversight by the Ministry Council. Definitions Designated Funds are those funds that have been voted on by the Ministry Council to be used for a particular purpose. These funds can be redesignated or terminated by the Finance Committee or Ministry Council. Restricted Gifts are those funds or gifts that have a donor imposed stipulation that limits the use to a specified purpose. The restriction may be lifted by the donor or donor s representative, with a written or oral waiver. Should the original restriction become difficult to fulfill in light of changing circumstances of the community or the church, the Ministry Council, with a majority vote, may modify or lift the restriction to move the funds to the general fund of the church for the best use of its ministries. Procedures and Administration of the Policy Establishment of a Designated Fund - The request to establish a new fund must originate with a committee chair. The Designated Fund and Restricted Gift Request Form must be completed and submitted to the Finance Committee for review and then the Ministry Council for approval. The purpose of each fund should be to receive, hold, record and expend funds and unrestricted gifts. Whenever possible, the fund should be managed on a pass-through basis. 1

2 That is, receipts for a specified use should be spent when received in order to maintain a zero balance in the fund. Temporary designated funds are established to meet a ministry or mission of the church which is event or need specific and whose accomplishment can be reasonably predicted and defined. Permanent designated funds are established to meet long range or continuing needs of the church ministries and missions which do not properly belong within the annual operating budget. The number of designated funds should be maintained at a workable minimum by using broader designations. The list of designated funds with their descriptions follows. MEMORIAL FUND FUMC Pearland, in exercise of its religious and charitable purposes, has established a memorial fund to honor the memory of deceased individuals. The church welcomes contributions to the fund. The administration of the fund, including all disbursements, is subject to the control and discretion of the Sr. Pastor, Business Administrator and/or Finance Committee of the church. All disbursements from this fund for ministry use will be made no later than six months after the contribution is given. The Finance Committee may consider recommendations from anyone, but the committee is not bound in any way to honor the recommendations. Donors will not be permitted to recover a contribution because the committee failed to honor the donor s The memorial fund is part of the continuing mission of the church and has established this fund as an ongoing fund. Should at any time in the future the Ministry Council vote to close this fund, all money in the fund at that time will go in the general budget of FUMC Pearland. CAPITAL PROJECTS FUND FUMC Pearland, in exercise of its religious purposes, has established a Capital Projects Fund to assist in maintaining the church buildings, equipment and grounds. The church welcomes contributions to the fund. The administration of the fund, including all disbursements, is subject to the control and discretion of the Trustees Committee and/or Ministry Council of the church. The Trustees Committee may consider recommendations from anyone, but in no event is the committee bound in any way to honor recommendations. Donors will not be permitted to recover a contribution on the grounds that the committee failed to honor the donor s The church recognizes that maintaining the church buildings, equipment and grounds is a practice of good stewardship and has established this fund as an ongoing fund. Should at any time in the future the Ministry Council vote to close this fund, all money in the fund at that time will go in the general budget of FUMC Pearland. MISSIONS FUND FUMC Pearland, in exercise of its religious and charitable purposes and mission, has established a Missions Fund to provide resources for the church to assist individuals and charitable organizations both locally and globally. The church welcomes contributions to the fund. The administration of the fund, including all disbursements, is subject to the control and discretion of the Missions Committee, Sr. Pastor and/or the Ministry Council of the church. 2

3 The Missions Committee may consider recommendations from anyone, but in no event is the committee bound in any way to honor the recommendations. Donors will not be permitted to recover a contribution on the grounds that the committee failed to honor the donor s When assisting individuals in need, the following data should be recorded to satisfy the Internal Revenue Service requirement for these types of requests: 1. Complete description/purpose for which assistance was given 2. How recipient was selected 3. Name, address and amount distributed to recipient 4. Relationship, if any, between the recipient and members or staff of FUMC Pearland The church recognizes that assisting others and spreading the gospel of Jesus Christ is the primary purpose of the church and has established this fund as an ongoing fund. Should at any time in the future the Ministry Council vote to close this fund, all money in the fund at that time will go in the general budget of FUMC Pearland. YOUTH/CHILDREN MISSION, CAMP & RETREAT FUND FUMC Pearland, in exercise of its religious purposes and mission, has established a Youth/Children Mission, Camp & Retreat Fund to provide resources for youth and children of the church to attend mission events, camps and retreats. The church welcomes contributions to the fund. The administration of the fund, including all disbursements, is subject to the discretion of the Youth Ministry Council, Director of Youth Ministries, Children s Ministry Council, Director of Children s Ministries, Sr. Pastor and/or Finance Committee. The church committees and staff listed above may consider recommendations from anyone, but in no event is the church bound in any way to honor the recommendations. Donors will not be permitted to recover a contribution on the grounds that the church failed to honor the donor s The church recognizes that youth/children mission events, camps and retreats are a vital part of the church s purpose and has established this fund as an ongoing fund. Should at any time in the future the Ministry Council vote to close this fund, all money in the fund at that time will go in the general budget of FUMC Pearland. Establishment of a Restricted Gift Restricted gifts can be given for the ministry of the church, however, the donor must complete the Designated Fund and Restricted Gift Request Form whenever possible. The form will be submitted to the Finance Committee for review and then the Ministry Council for approval. A restricted gift account must be established before the church receives the donation. Some restricted gifts may be more appropriate for an already established designated fund. The Sr. Pastor, Finance Chair or Ministry Council Chair or their designees will provide guidance to the donor if this is the circumstance. The spirit and intent of the donor s gift will be respected and noted, however, the donor will not be permitted to recover a contribution on the grounds that the church failed to honor the donor s Gifts that are not restricted for specific items, including all non-restricted bequests, memorials and trusts, will be placed in existing designated fund accounts. 3

4 Expenditures of Designated Funds and Restricted Gifts The Finance Committee will evaluate and review expenditure requests, with input from staff and ministry teams assigned to the fund or gift. In order not to impede the purchase of routine and/or non-controversial items, the Sr. Pastor, Finance Chair, Ministry Council Chair or their designees, may approve a request of $1000 or less without waiting for their next meeting. At the end of each month an actual expenditure record will be provided to the Finance Committee. Conclusion The FUMC Pearland policy regarding designated funds and restricted gifts will be handled in accordance with the procedures set forth above and as far as reasonable for the purposes for which they were designated. Nevertheless, FUMC Pearland, through the Ministry Council and Finance Committee, retains the right to remove the restriction on a gift when it is in the best interest of the church to do so. The reservation of right shall be set forth on all church materials relating to donations, gifts or fund raising such as, but not limited to, offering envelopes, event and fundraising flyers, receipts, building or other designated fund materials, etc. All such similar documents shall contain the following statement: All gifts to FUMC Pearland are conditionally accepted and subject to the best interests of the church standard, set forth in the Financial Stewardship Policy. Exclusions to this policy 1. Physical items that are donated for use by the church 2. Giving which is part of an annual pledge or specified to be used for the general budget, including loose plate giving 3. Gifts to the Permanent Endowment Fund 4. Special capital campaign funds which the church might vote to establish from time to time Amendments The terms and conditions of this policy may be amended only by a majority vote at a dulyannounced Ministry Council meeting of the church. 4

5 This policy was approved and adopted by Pearland First United Methodist Church Ministry Council on January 17, 2011, and will remain in effect until amended in writing. Don Bailor, Ministry Council Chair Date Harold Coffman, Finance Committee Chair Date 5

6 First United Methodist Church, Pearland Designated Fund and Restricted Gift Request Form (Ministry Council Approved 01/17/2011) Complete and return this form to the church office. You will be notified by or phone if the fund or gift is accepted and ready for contributions. Please direct any questions regarding the completion of this form or the status of the request to the Business Administrator at Please apply the gift to one of the following established funds: (circle one) Permanent Endowment Fund Capital Projects Fund Memorial Fund Missions Fund Youth/Children Mission, Camp & Retreat Fund OR Fill out the following for a new fund or gift to a ministry not listed above. Name of fund/gift: Purpose of fund/gift: Time necessary to achieve purpose of the fund/gift: Donor/Requestor Name (or source of funds): Phone: Amount: Signature: Date: ***CHURCH USE ONLY *** Finance Committee Chair Review (Print Name) Signature Date All gifts to FUMC Pearland are conditionally accepted and subject to the best interests of the church standard, set forth in the Financial Stewardship Policy. Unused or excess balances will be applied to the general fund for the best use toward the mission and ministries of the church. 6

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