Heritage Fund Guidelines

1
Heritage Fund Guidelines

• Heritage Committee manages both the memorial fund
  and stain glass window fund. Guidelines in
  Appendix III covers only the Heritage Memorial
  Fund.

2
Heritage Fund Guidelines What has changed
As approved at Special Vestry, Nov 30/08

• Establishment of Fund Cap
• Annually, at Vestry, the Corporation will put
  forward a motion establishing a Fund Cap for that
  year
• The Cap is voted on and must be set before the
  overall Operating Budget is presented and
  accepted
• Fund Cap sets rules for the withdrawal of funds
  from Heritage by Corporation without Vestry
  approval for any purpose (may not be a capital
  expense)
• Existing rules for withdrawing money for capital
  expenses remain the same as they are now
• To set Fund Cap, Corporation takes into account
  any known or expected capital projects (leverage
  existing professional engineering report, desired
  projects needing capital to fund) for that year

3
Heritage Fund Guidelines What has changed
As approved at Special Vestry, Nov 30/08

• What will change
• To set Fund Cap, Corporation takes into account
  any known or expected capital projects (leverage
  existing professional engineering report, desired
  projects needing capital to fund) for that year

4
Heritage Fund Guidelines What has remained the
same
As approved at Special Vestry, Nov 30/08

• Parishioners can donate, designate, bequeath or
  in any way, contribute directly to the Fund.
• The Fund seeks to earn income throughout the year
  (Interest earned from Bonds or appreciation in
  any form) according to the rules of investment as
  managed by the Heritage Fund Investment
  Committee.
• The Corporation will continue to need Vestry
  approval to withdraw any amount of money from the
  Fund for any/all specified projects requiring
  capital expense.

5
Heritage Fund Cap How does it work?
As presented at Special Vestry, Nov 30/08

• Scenario 1

Approved Deficit Budget of 20k achieved
Negative Fund Growth
Fund Cap 250k
Revenue minus Expenses -20k Result Funds
cannot be withdrawn from Heritage to offset budget
10k
Fund Shrinks 240k
Jan 1
Dec 31
6
Heritage Fund Cap How does it work?
As presented at Special Vestry, Nov 30/08

• Scenario 2

Approved Deficit Budget of 20k achieved
Limited Fund Growth
Revenue minus Expenses -20k Result Only 10k
can be withdrawn from Heritage to offset approved
deficit budget because Fund didnt grow by at
least 20k
Fund Grows 260k
10k
Fund Cap 250k
Jan 1
Dec 31
7
Heritage Fund Cap How does it work?
As presented at Special Vestry, Nov 30/08

• Scenario 3

Approved Deficit Budget of 20k not achieved
Fund Grows
Fund Grows 300k
50k
Revenue minus Expenses -30k Result Only 20k
can be withdrawn from Heritage to offset budget
- only a deficit of 20k was accepted at Vestry
for that year - even though the Fund grew by more
than 30k
Fund Cap 250k
Jan 1
Dec 31
8
Heritage Fund Cap How does it work?
As presented at Special Vestry, Nov 30/08

• Scenario 4

Approved Deficit Budget of 20k achieved
Fund Grows
Fund Grows 300k
50k
Revenue minus Expenses -20k Result 20k
withdrawn from Heritage to offset approved
deficit budget
Fund Cap 250k
Jan 1
Dec 31
9
Heritage Fund Cap How does it work?
As presented at Special Vestry, Nov 30/08

• Scenario 5

Fund Grows
Balanced Budget
Fund Grows 300k
50k
Revenue minus Expenses 0 Result No funds
withdrawn from Heritage
Fund Cap 250k
Jan 1
Dec 31