ENDOWMENT FUND REPORTS

January 1, 2009 to December 31, 2009 Report

Our Endowment funds are invested in the UUA Common Endowment Fund (UUA CEF) and Schwab.

The beginning cost balance in UUA CEF was $86,292.02 with a market value of $60,760.80. We cashed a matured security in Schwab of $10,000 to invest in UUA CEF. We earned $1,735.53 in interest and dividends, paid UUA administrative fees of $818.72. Our ending cost balance is $101,764.54 which, with somewhat better market conditions than last year, gives us a market value of $91,170.12. The investment in the UUA CEF, to date, has recovered about half of the market reduction from the previous year.

Schwab beginning balance was $11,479.56. This account earned $242.32 in dividends and interest, received income from the Campbell fund of $150.89, paid charges of $25.00, less market change $32.80. As noted above we cashed a matured security of $10,000 and invested it in UUA CEF leaving $1,834.57 as an ending balance.

The objective of the Endowment Fund is to provide for the long-term health and survival of the congregation. Our funds are held in accounts separate from all other accounts of the church.

Current Trustees are

Ruth Nelson 541-689-4020
Monica Frank 541-343-0191
Martin Sage 541-342-3174

January 1, 2008 to December 31, 2008 Report

Our endowment funds are invested in the UUA Common Endowment  Fund (UUA CEF), formerly named UUA General Investment Fund. (UUA GIF) and Schwab.

Our UUA CEF fund beginning balance was $62,335.21.  Schwab beginning balance $29,423.25.  Matured securities in Schwab were sold and $19,000 was transferred to UUA CEF fund in June of 2008.  We earned dividends of $4,580.36 and the Campbell fund income was $175.29.

Schwab ending balance December 31, 2008 was $11,479.56.  The UUA CEF reports an ending tax cost  of $86,292.02 but a market value of $60,760.80.  This represents a market fluctuation (total return) of minus 24.7%. This compares favorably with minus 40% for the total stock market (S&P 500 index), however the UUA CEF is only 60% in stocks (40%in bonds).  Compared with our earlier investments policy which was concerned more with capital preservation there is some cost in the present policy of green and socially responsible investing. We may hope that this will be more than offset by the potential for gain in more favorable market conditions.

The objective of the Endowment Fund is to provide for the long-term health and survival of the congregation.  Our funds are held in accounts separate from all other accounts of the church.  

Current Trustees are

Ruth Nelson 689-4020
Monica Frank 343-0191
Martin Sage 342-3174

January 1, 2008 to June 30, 2008

The Endowment Fund has accounts in Schwab and in the UUA General Investment Fund (GIF).  In the last six months
our accounts have earned interest and dividends of  $2,288.78, the Campbell fund income is $80.05.  Market change is minus $5,256.91.  In April, a matured security of $19,000 was moved from Schwab to the GIF.  We have balances of $11,190.01 in the Schwab account and $77,680.37 in the GIF for a total of $88,870.38.
 
Funds still under the direct investment control of the trustees are invested for capital preservation and the generation of income. Following suggestions from the congregation and with the support of the Board, most of the endowment funds have been transferred to a balanced fund run by the UUA with an investment policy of ecological and social responsibility. This more aggressive investment policy of the UUA can be expected to produce greater market fluctuation than in the past. 

The objective of the Endowment Fund is to provide for the long-term health and survival of the congregation.  Its assets are held in a balanced, diversified portfolio of conservative investment accounts at Schwab and the more socially conscious and environmentally friendly UUA GIF.  Our funds are held in accounts separate from all other accounts of the church.  Our goals are capital preservation and income. 
 
Endowment Fund trustees

Martin Sage 342-3174
Monica Frank 343-0191
Ruth Nelson 689-4020

May 2008 Endowment Fund Report

In the calendar year 2007, after consultation with the UUCE Board, the Endowment Fund trustees transferred funds to the General Investment Fund (GIF) of the UUA. Securities were marketed and $46,000 cash was transferred on June 21, 2007.

Our Endowment Fund accounts received gifts of $17,236.02, earned interest of $2,553.02, and dividends of $554.07. The Campbell Fund earned $157.02. There was a market change of plus $1,676.45 and a bank charge of $25.

The objective of the Endowment Fund is to provide for the long-term health and survival of the congregation. Its assets are held in a balanced, diversified portfolio of conservative investment accounts at Schwab and the more socially conscious and environmentally friendly UUA GIF. Our goals are capital preservation and income.

May 2007 Endowment Fund Report

The trustees of the endowment fund of the UU church in Eugene voted unanimously at their meeting in December 2006 to move the bulk of the investments in the endowment fund to the UUA General Investment Fund.

The trustees have the authority to make this change by virtue of the bylaws of the church. We propose that the change will commence in 2007 with the liquidation of stock funds and continue over the next few years as existing certificates of deposit, etc. mature.

Although we have the authority to make this change, we note that it is a significant one and accordingly by this notice we are making our intentions clear and providing opportunity and time for comment before we start the transfer.

The following notes may be helpful.

There is a movement within the church to have the church investments conform to social and environmentally responsible investing (SERI) standards. There is a general investment fund (GIF) administered by the UUA for the benefit of individual churches. SERI policy is being implemented for this fund.

The fund has lower administrative cost (about1%) than most managed mutual funds, (although higher than an unmanaged index fund). Statements are provided quarterly, Funds may be added or removed easily at the end of any quarter.

The fund is large enough (over 115million) to provide some advantages of scale and it is diversified over a range of stocks, bonds and other items such as real estate.

The fund is increasingly popular with other churches. They are currently moving their funds into this GIF so that their contributions to the fund increased 30% in the last year. The targeted rate of return on the fund over a full market cycle is 8.5% or 5% after inflation. Given the small size of the UU church in Eugene's endowment, the trustees of the endowment do not believe they can compete with the UUA's GIF fund.

We may continue to keep some funds in a money market or short-term bond fund etc.

This change applies to the existing endowment account. Additional special endowment funds, which may, in future, be placed under the control of the trustees, will be invested as appropriate for their special needs. This may, or may not include further investments in the UUA GIF account

Trustees of the church endowment fund:

Martin Sage 342-3174
Monica Frank 343-0191
Ruth Nelson 689-4020

The Endowment Fund is a Foundation for Our Future. The objective of the Endowment Fund is to provide for long-term health and survival of the congregation. Its assets are held in a balanced, diversified portfolio of conservative investment accounts at Charles Schwab. Our goal is capital preservation and income.

Planned Giving Committee

Charge:
The Planned Giving Committee consists of three to five voting members appointed by the Board for staggered three-year terms. The Board shall appoint the chair, and the committee shall elect a secretary from its membership. The committee's duties shall be as follows:
·  Advertise and promote the Endowment Fund
·  Create a procedure for identifying prospective donors.
·  Develop a plan for accepting donations and recognizing donors and their bequests.
·  Become knowledgeable about the various ways people may bestow gifts.
·  Organize workshops and seminars on estate planning and planned giving with outside consultants, as needed.
·  Organize workshops to inform church members about wills, deferred giving, and other endowment-related activities.
  Approved by the Board, April 14, 2005.

Board Policies on Giving

See also Finance Committee

Ten things you can do to leave a legacy to UUCE

1. Prepare a will. Only 50% of those who die have a will. Without a will, you can lose control over your belongings.
2. Leave a gift in your will to the Unitarian Universalist Church of Eugene, and the other not-for-profit and charitable organizations that have made a difference in your life. Less than six percent of American households have included not-for-profits in an estate plan.
3. Consider using assets for a gift to UUCE. Gifts of stocks, bonds, CDs, real estate, vehicles, art and jewelry may even provide a tax savings.
4. Leave a specific dollar amount or percentage of your assets in your estate to UUCE.
5. Name UUCE as beneficiary of an existing life insurance policy.
6. Name UUCE as the beneficiary of your pension plan or IRA.
7. Remember a loved one with a memorial bequest to UUCE.
8. Encourage members and friends of UUCE to leave gifts to UUCE in their wills.
9. Purchase a new life insurance policy naming UUCE as beneficiary
10. Ask you finiancial advisor to include a charitable gift to UUCE as a part of your financial planning.