TRINITY BY-THE-SEA_ENDOWMENT POLICY

ENDOWMENT FUND DEFINITION:

All cash, checks, securities or real property gifted to Trinity By-The-Sea (TBTS) whose value exceeds $5,000 will be considered a gift to the Trinity By-The-Sea Endowment Fund, hereinafter referred to as “The Fund”, unless designated by the donor specifically for use in support of annual operations. Gifts of $10,000 or greater may be used to establish a named memorial endowment with The Fund. Gifts may be “Unrestricted” or designated by the contributor as “Restricted” and a use specified. Contributions may be given in any amount to The Fund or specific Endowments within The Fund.

VALUATION OF GIFTS:

Cash will be valued in US Dollars and securities valued at market and sold within 12 months of the date of the gift. Real estate and all other real property will be valued by a qualified appraiser whose fees will be paid by the Fund unless provided for by the donor. All gifts will be valued as of the effective date of the gift.

INVESTMENT:

All restricted and unrestricted contributions will be pooled for investment management. Amounts may be deposited in a local Maui money market account for a period not to exceed 90 days. The contributions must subsequently be invested in a high quality, low risk regulated Fund. The Episcopal Church in Hawaii, Pooled Endowment Fund will be given preference as long as the fund performance is competitive. The choice of investment fund or funds will reside solely with the TBTS Vestry.

UNRESTRICTED FUND EARNINGS:

The gains, both realized and unrealized, on unrestricted funds will be split 50/50 - one half remaining with the corpus of The Fund to offset inflation and continue to grow The Fund balance, and one half contributed to the TBTS operating account. At the start of each calendar year, a maximum of 5% of the previous year end balance of The Fund may be deposited in the operating account based on the 50/50 split. All or any portion of the amount subject to deposit in the operating account may be retained in The Fund at the discretion of the Vestry. In any year that the fund should have a loss, no distribution will be made to the operating account and The Fund must be brought up to the previous year-end high water mark prior to calculating any gains for possible distribution.

RESTRICTED FUND EARNINGS:

The gains and losses, both realized and unrealized, related to all Restricted Funds will increase or decrease the balance in the Funds. Distributions from the Funds will be made by the Vestry in accordance with the use specifications given by the donor.

DISTRIBUTION OF THE CORPUS:

Restricted Funds bay only be used for the purpose specified by the donor and all withdrawals approved by the Vestry. Unrestricted Funds may be utilized at the discretion of the TBTS Vestry to:

Ÿ Assist with New Facilities

Ÿ Pay off debt

Ÿ Make expenditures deemed by the Vestry to be an “Emergency”

AUTHORIZATION:

Approval of the Vestry related to all aspects of The Fund administration require a super majority of 67% to be voted on twice at regularly scheduled Vestry meetings. All transactions must be supported by documentation and dual signatures of the Senior Warden and the Treasurer are required for all withdrawals from The Fund.