The Board of the Endowment Fund
Of
King of Peace Episcopal Church

Spending Rules

Allocations of funds available for distribution will be made in two general ways:

1. Upon written request of the Vestry, and with the approval of the Board of the Endowment Fund, funds may be transferred to the parish treasurer for those uses that conform to the purposes and restrictions incorporated in the enabling resolution adopted by the Vestry on _________________, 200___.

2.  As set forth in this enabling Vestry resolution, the Board of the Endowment Fund may obligate monies for general expenses incident to the management and administration of the Fund.  Extraordinary initiatives contemplated by the Board to be undertaken for Endowment Fund development will be approved by the Vestry before implementation.

It is the goal of the Endowment Board to provide for a reasonable and consistent level of expendable funds to be made available for the purposes established for those funds.  At the same time it is committed to providing for the long-term growth of the Endowment Fund, at least at a level commensurate with inflation.

Expendable funds will be determined on the basis of a total-return principle and will not be dependent upon income generated through interest or dividends.  The funds available for distribution during any one year will be limited to 5 percent of the market value of the corpus, which value is determined by computing a three-year rolling average, with measures taken at the end of each of the preceding twelve quarters.  The market values for this purpose will be taken net of the fees for investment management.  All other expenditures, whether in category 1 or 2 above, will be taken from funds available for distribution.

Any unexpended funds from those available for distribution in a given year will be accrued and will continue to be considered “available for distribution” in subsequent years, unless otherwise designated by action of the Board of Endowment fund, with the approval of the Vestry.

Adopted by action of the Board of the Endowment Fund of (Parish) this ______ day of ______________, 200___.

___________________________  
               Chairperson