Annual Outreach Fund Report
The Outreach Fund has, over the past year, grown over five percent in value. At the end of 2009 the Fund’s value was $28,177.28; its value yesterday was $31,226.00, which includes an income of slightly more than $2885.00 The Outreach Committee cannot distribute this income unless the congregation reaffirms last year’s approval of the revised Outreach Charter.
For multiple reasons, the membership of the Committee has not been maintained in accordance with the Charter, which stipulates that members cannot serve more than three years. All of the existing members have served out their terms and a new team is to be voted on at this meeting. The outgoing committee of Anne Hubbard, Frank Michel, Arnold Hagiwara, Thelma Huchthausen, and Frank Schutz look forward to having a new team take responsibility for this important church function.
The five changes that the Finance Committee made in Outreach Fund investments in mid-2009 focused on producing income equities. The value of these investments, which yield an income between 5 to 7 percent, increased from 3 to 31 percent over the past eighteen months. Two residual Fund investments that lost value were not sold because, at that time, the cost of selling them would probably be equivalent to the value of the stock. One of them has recovered slightly, but does not provide any income. Another residual investment, although it reflects a loss of about 4 percent, still produces an income of slightly more than 7 percent.
The Outreach Committee requests confirming congregational approval of the changes to the Outreach Fund Charter that were approved by the congregation at last year’s annual meeting.
These changes are:
Item 4. Expenditures of Principal—major change 1:
The current statement reads as follows: All amounts of money donated to the Fund shall be identified as the principal. All principal amounts will be retained in the Fund. Only the income generated by the principal can be expended by the Committee.
The Outreach Committee would like to revise this statement to read: The Fund’s principal is defined as the value of the Fund’s investments in equities and cash as of the last day of December 2009, plus any donations made to the Fund subsequent to that date. Principal cannot be invaded to make donations.
Item 5. Amending the Resolution—major change 2:
Change the wording identifying Item 5 to read: Amending the Charter.
The current statement reads as follows: Be it further resolved, that any amendment to this resolution which shall change, alter or amend the Fund shall be adopted by a two-thirds vote of the members present at two successive annual meetings of the parish.
The Outreach Committee would like to change this statement to read: The Outreach Charter can only be altered or amended by a two-thirds vote of the members present at an annual meeting of the congregation. Recommendations for such changes must be approved by the Outreach Committee and Vestry prior to being submitted to the congregation for a vote. It is assumed that the Outreach Committee Chairperson shall provide the Vestry with the rationale for any change recommendations. If the Vestry approves, the changes will be submitted to the congregation for approval at the next Annual Meeting.
A few other clarifying changes have been made in the Charter to reflect the transfer of investment responsibility from the Outreach Committee to the Finance Committee and to simplify the structure of the Outreach Committee. As a result, the designation of a person on the Committee to be a “Financial Secretary” is eliminated.
Although not a part of the original Charter, the Outreach Chair was, until 2007, responsible for the purchase and sale of Fund investments. The current Committee Chair felt that this role was not a judiciously valid approach because it placed too much responsibility in the hands of the Chair. For this reason, the purchase and sale of Fund investments is being handled by the Church Treasurer, based on documented recommendations of the Finance Committee. It is essential for the Fund to have a check and balance process in place.
Approval of the first major change allows the Outreach Committee to continue functioning since the income received during 2010 would be available for distribution following this year’s Annual Meeting. If last year’s approval vote is not confirmed by the Congregation, then the Outreach Committee will be dissolved and a new Committee will not be established until the value of the Fund again exceeds the donated value of $35,625.
Approval of the second major change would only require a single vote of the congregation to change the charter, rather than a vote at two sequential annual meeting votes.
In spite of the deterioration in the Outreach Fund’s value, St. Paul’s donated $220 last year to two charities. These funds were given for direct outreach, not to increase the value of the Fund. At the end of the calendar year approximately $1,500 will be available for distribution to local charities.
In 2009 the Finance Committee assumed responsibility for the Outreach Fund investments. It then made a number of changes in those investments, all of which have yielded positive results. This change is now reflected in the Outreach Charter. The investment changes that this committee made in mid-2009 primarily focused on replacing the existing investments with relatively safe, income producing investments.
The Outreach Fund has, over the past year, grown over five percent in value. At the end of 2009 the Fund’s value was $28,177.28; its value yesterday was $31,226.00, which includes an income of slightly more than $2885.00 The Outreach Committee cannot distribute this income unless the congregation reaffirms last year’s approval of the revised Outreach Charter.
For multiple reasons, the membership of the Committee has not been maintained in accordance with the Charter, which stipulates that members cannot serve more than three years. All of the existing members have served out their terms and a new team is to be voted on at this meeting. The outgoing committee of Anne Hubbard, Frank Michel, Arnold Hagiwara, Thelma Huchthausen, and Frank Schutz look forward to having a new team take responsibility for this important church function.
The five changes that the Finance Committee made in Outreach Fund investments in mid-2009 focused on producing income equities. The value of these investments, which yield an income between 5 to 7 percent, increased from 3 to 31 percent over the past eighteen months. Two residual Fund investments that lost value were not sold because, at that time, the cost of selling them would probably be equivalent to the value of the stock. One of them has recovered slightly, but does not provide any income. Another residual investment, although it reflects a loss of about 4 percent, still produces an income of slightly more than 7 percent.
The Outreach Committee requests confirming congregational approval of the changes to the Outreach Fund Charter that were approved by the congregation at last year’s annual meeting.
These changes are:
Item 4. Expenditures of Principal—major change 1:
The current statement reads as follows: All amounts of money donated to the Fund shall be identified as the principal. All principal amounts will be retained in the Fund. Only the income generated by the principal can be expended by the Committee.
The Outreach Committee would like to revise this statement to read: The Fund’s principal is defined as the value of the Fund’s investments in equities and cash as of the last day of December 2009, plus any donations made to the Fund subsequent to that date. Principal cannot be invaded to make donations.
Item 5. Amending the Resolution—major change 2:
Change the wording identifying Item 5 to read: Amending the Charter.
The current statement reads as follows: Be it further resolved, that any amendment to this resolution which shall change, alter or amend the Fund shall be adopted by a two-thirds vote of the members present at two successive annual meetings of the parish.
The Outreach Committee would like to change this statement to read: The Outreach Charter can only be altered or amended by a two-thirds vote of the members present at an annual meeting of the congregation. Recommendations for such changes must be approved by the Outreach Committee and Vestry prior to being submitted to the congregation for a vote. It is assumed that the Outreach Committee Chairperson shall provide the Vestry with the rationale for any change recommendations. If the Vestry approves, the changes will be submitted to the congregation for approval at the next Annual Meeting.
A few other clarifying changes have been made in the Charter to reflect the transfer of investment responsibility from the Outreach Committee to the Finance Committee and to simplify the structure of the Outreach Committee. As a result, the designation of a person on the Committee to be a “Financial Secretary” is eliminated.
Although not a part of the original Charter, the Outreach Chair was, until 2007, responsible for the purchase and sale of Fund investments. The current Committee Chair felt that this role was not a judiciously valid approach because it placed too much responsibility in the hands of the Chair. For this reason, the purchase and sale of Fund investments is being handled by the Church Treasurer, based on documented recommendations of the Finance Committee. It is essential for the Fund to have a check and balance process in place.
Approval of the first major change allows the Outreach Committee to continue functioning since the income received during 2010 would be available for distribution following this year’s Annual Meeting. If last year’s approval vote is not confirmed by the Congregation, then the Outreach Committee will be dissolved and a new Committee will not be established until the value of the Fund again exceeds the donated value of $35,625.
Approval of the second major change would only require a single vote of the congregation to change the charter, rather than a vote at two sequential annual meeting votes.
In spite of the deterioration in the Outreach Fund’s value, St. Paul’s donated $220 last year to two charities. These funds were given for direct outreach, not to increase the value of the Fund. At the end of the calendar year approximately $1,500 will be available for distribution to local charities.
In 2009 the Finance Committee assumed responsibility for the Outreach Fund investments. It then made a number of changes in those investments, all of which have yielded positive results. This change is now reflected in the Outreach Charter. The investment changes that this committee made in mid-2009 primarily focused on replacing the existing investments with relatively safe, income producing investments.