What is the Permanent Endowment Fund (PEF)?
It is an investment account established as part of the 2014 capital campaign. It is
governed by the church bylaws.
What is an endowment fund?
It is a pool of assets, invested to provide a long-term, stable source of funding. The
principal is preserved while the income is used to support our mission.
When can it be used by the church?
Under the revised bylaws, distributions of income and appreciation may be used after
the PEF has accumulated a fair market value of $250,000.
How is the amount available for distribution determined?
Under the bylaws, the Executive or designee shall determine the maximum amount
available for distribution annually, based on the income and appreciation available on
December 31 of the year preceding the year in which distributions are to be made.
Can principal be distributed?
No. It must be preserved.
Can the principal be increased?
Yes. Gifts such as cash and property donated directly, through a will or trust, or received
as beneficiary of a retirement plan or insurance can be used to add to the principal.
What can the distributions from income be used for?
The bylaws are very specific and permit use for the maintenance of buildings, capital
improvements or renovations, debt reduction; outreach into the community such as
through grants to camps and conferences, theological schools, local social service
agencies, and certain special programs; and for the wider mission of Unitarian
Universalism such as leadership training, scholarships or grants to attend schools, etc.
Are there any limitations on distributions in addition to the purposes?
Yes. The Board of Trustees must approve distributions, and it may adopt policies and
procedures to ensure proper administration.
Can distributions be made from the PEF now (after the bylaws amendment)?
Yes. The PEF now has a balance in excess of $250,000. Bylaws changes become
effective when 2/3rds of the members approve them.
