Congregations and the Endowment Fund
Frequently Asked Questions
1. Is the Unitarian Universalist Association (UUA) willing to
invest member congregation funds into its managed endowment?
The UUA has an investment
fund that is used for investing endowment funds for the UUA and for
congregations, districts and other affiliates who choose to invest with the
Association.
A forty day advance notice is requested for orderly investment cash flow planning for new investments and for withdrawals.
2. If so, would we retain the
rights to the funds, or do the funds technically transfer to the UUA?
The UUA has an investment
agreement (PDF) whereby the funds would be owned by you and invested with the
Association.
3. Would our funds increase
in tandem with the overall UUA funds? If our initial deposit is $100,000 and the
2003 rate of growth of the UUA funds is 7%, at the end of the year we have
$107,000.
In a word, yes. The Endowment Fund is a
unitized common trust fund that's valued quarterly. Investments, withdrawals or
liquidations and quarterly income draw payments are all made as of the end of
calendar quarters and the beginning of the next quarter.
4. Could we
give instruction to have some set amount or percentage of the funds remitted to
for ongoing functions?
Investors in the Endowment Fund are normally offered a
range of draw from 4.5% to 6% and payments are made quarterly. The Endowment Fund also
accommodates investors who choose to fully reinvest or even an annual draw of
3%. Additional investments or withdrawals are made on 30 day advance notice
before the end of the calendar quarter.
5. What are the costs to the
church to invest funds in the Endowment Fund (other than the management costs included
in operating results of the Endowment Fund)?
The investment service fees
are less than 1% of market value and performance is reported net of all fees and
expenses, with no additional fees charged.
The following provide answers to some other frequently asked questions you may have.
- What is the investment agreement for a Congregation or affiliate?
- Does the UUA have a website about its guidelines and policies?
Please contact the UUA Treasurer (treasurer @ uua.org) should you have further questions.
For more information contact responsibleinvesting @ uua.org.
Last updated on Friday, March 6, 2009.
