Date(s) - Sunday, February 16, 2020
UUCLB, Rm 2/3
Why update now?
This bylaw is outdated and no longer accurately reflects the practices of the Church.
Current Bylaw – Article V, Section B, Part 2:
(2) General Reserve Fund: The purpose of the General Reserve Fund is to provide the membership an assured source of income from the interest on the fund’s investments.
(2) Endowment Reserve Fund: The purpose of the Endowment Reserve Fund is to help assure the long-term financial security of the Church, to help resolve financial emergencies, and to help fund capital needs or special projects that support the vision and mission of the Church. Distributions or withdrawals from the Fund shall not exceed 5% per annum of the Fund’s average value without approval by two-thirds of the members present and voting, a quorum being present, at two congregational meetings separated by at least 4 weeks. The Fund’s average value shall be determined by the formula stated in the Operating Agreement of the Unitarian Universalist Common Endowment Fund, LLC.
What will be clarified with this bylaw update?
1. Distributions or withdrawals from our investments are technically not interest-only. The Fund is currently invested through UUCEF (UU Common Endowment Fund), and distributions or withdrawals to our church from its investments always represent more than just simple interest (e.g., dividends, capital gains, etc.).
2. Withdrawals may be used for something that the congregation carefully votes on. This update will help protect the principal of the Fund by limiting small or regular distributions to 5% per year, while clarifying that the Fund is available to support the larger vision and mission of the Church. The new wording better reflects the understood intent of the Fund and continues the requirement of two votes of the congregation for approval of large withdrawals (over 5%).
And if we don’t pass this bylaw update?
We will continue to be out of compliance with our bylaws.