East Shore is very fortunate to have a substantial endowment to assure the long term success of the congregation. The endowment was established in 1983 and has received donations ever since. Legally, it is a “quasi-endowment.” There have been many donors and in accordance with the charter and policies, the principal can be used in accordance with the Charter.
The Endowment Committee Charter allows for an annual distribution to the operating fund of 3.5% of the 3 year average market value as of December 31, providing it will not drop the balance below $900,000. Additional withdrawals up to $100,000 above the annual distribution can be approved by the Board of Trustees. Above that amount requires a congregational vote with a quorum of 25%.
As of the end of October, the balance in the endowment is about $980,000. Funds are deposited with Charles Schwab in Socially Responsible investments. East Shore has an assigned fund manager who provides a detailed report quarterly to Financial Stewardship and the Endowment Committee. He is also available for consultation at any time.
The Charter anticipates that the endowment would grow sufficiently to meet all of the Capital need for the future. That has not happened and to assist in the funding of East Shore’s capital needs the 2024 budget allows for the creation of a separate Building Reserve Fund to handle scheduled major repairs over time while maintaining at least the minimum balances in the Endowment fund.
Donations to East Shore are always welcome. It is hoped that many folks will include East Shore in their wills or trusts. Special donations can and should be designated to go to Operating, Endowment or now the Building Reserve. Undesignated funds will remain in the Operating Fund.
by Geri Kennedy, Treasurer