Article 10.Endowment Fund

1.NAME

St. Matthew Lutheran Church of Ada Township,Michigan(hereafter in article 10, "St. Matthew" or "the congregation") shall have a congregational endowment fund administered by the Board of Directors of the congregation. The fund shall be called the ST. MATTHEW LUTHERAN CHURCH ENDOWMENTFUND (hereafter in article 10, "Endowment Fund," "Endowment," or "the Fund").

2.GENERAL PURPOSE

A.The Endowment Fund's purpose shall be to receive, manage, and distributefunding for: missions, disaster relief, and humanitarian aid; pastor and church worker scholarships;and improvements to St. Matthew's property.

MISSIONS, DISASTER RELIEF, and HUMANITARIAN AID shall focus on:

  1. Lutheran or Christian international missions, disaster relief, and humanitarian aid
  2. Lutheran or Christian missions, disaster relief, and humanitarian aid within the United States
  3. Inner city mission outreach within the Michigan District of the Lutheran Church Missouri Synod (LCMS)
  4. Rural mission outreach within the Michigan Districtof the LCMS
  5. Mission trips and servant events organized or sponsored by St. Matthew regardless of location
  6. Providing resources to launch or enhance a special or unique ministry

PASTOR AND CHURCH WORKER SCHOLARSHIPS shall focus on:

  1. Current or former members of St. Matthew who intend to become a Lutheran Church-Missouri Synod (hereafter, "LCMS") pastor or full-time church worker and currently attend a LCMS Seminary, University or College.
  2. The LCMS Joint Seminary Fund or any LCMS Seminary then existing.

PROPERTY IMPROVEMENTS shall focus on:

Improving and maintaining property of St. Matthew and purchasing equipment for that purpose.

B.Both the principal and income from undesignated or unrestricted gifts and bequests to theEndowment Fund are to be used ultimately for the purposes, projects and programs recommended by the Endowment Committee and approved by a simple majority of the Board of Directors. The Endowment Committee and the Board of Directors shall seek the Holy Spirit's guidance and wisdom in carrying out their respective duties under the Endowment Fund.

C.Undesignated or Unrestricted Gifts - None of the income or principal from undesignatedor unrestricted gifts shall be distributed to the congregation's operatingbudget.

D.Designated or Restricted Gifts - Designated or restricted gifts and bequests may be given by a donor(s) with special terms or conditionsas to the use of the gift and/or of the income, provided that such designated or restricted use isconsistent with one or more of the stated purposes of the Endowment Fund.

E.When a designated or restricted gift or bequest is made to the Endowment Fund, the principal and any income from that gift or bequest is to be used only for the uses, projects, and programs designated by the donor(s), except as otherwise provided herein.

F.Donors may attach a Letter of Direction in the files of any contribution made to this Endowment Fund to direct the use of gifts and bequests for purposes which meet the requirements of the Endowment Fund. Said Letter of Direction may include, but is not limited to the following:

1.Name and address of the donor(s)

2.Statement of purpose

3. Restrictions, if any, on invasion of principal

4. Conditions for termination of gift restrictions

G.The Endowment Committee shall exercise good stewardship in deliberating over projects in which the Endowment Fund can best be used to the Glory of God. The Endowment Committee shall adopt an application process whereby other boards, committees, or members of St. Matthew Lutheran Church may apply for grants from the St. Matthew Endowment Fund.

H.Acceptance of all gifts is subject to the conditions set forth in the Endowment Fund Gift Acceptance Policy which shall be approved by the Board of Directors.

3.EXCEPTIONS TO RESTRICTIONS ON USES OF UNRESTRICTED AND RESTRICTED GIFTS

None of the principal or income from unrestricted or restricted gifts shall be used to meet

the congregation's operating budget, or for any purpose other than those stated under

paragraph 2 above. The Endowment Committee may recommend and the board approve

use of a restricted gift for a purpose other than stated if it is determined that one of the

following conditions exist:

A.The special terms and conditions of any restricted gift cannot be met due to changes in the law;

B.The administrative upkeep of any property, whether real or personal, tangible or intangible, is excessive;

C.The donor's original purpose in making a gift or bequest is rendered of no value to the church because of changes in the church strategy, structure or purpose. Any gift not useable after a 10 year period will revert back to an unrestricted status.

4.DURATION

The Endowment Fund shall continue in existenceand be used as provided above, so long as the congregation shall continue to exist.Otherwise, the Endowment Fund shall be dispersed as all other property of the church accordingto Article IX of the Constitution.

5.GOVERNING BODY AND OFFICERS

A.The Endowment Committee operating under the Board of Directors shall promoteand manage the Endowment Fund. The Committee's membership shall be:

  1. The Chairman, appointed by the Board of Directors for a three-year term and subject to re-appointment for not more than two additional consecutive terms. The Chairman of the Endowment Committee may not serve concurrently on the Board;
  2. TheTreasurer of the congregation will also be a member of the Endowment Committee and serve as the Treasurer of the Endowment Fund;
  3. Three other members of the congregation, appointed by the Board of Directorsfor a three-year term and subject to re-appointment by the Board for not more than two additional consecutive terms. These three members of the Endowment Committee may not serve concurrently on the Board.

B.The Endowment Committee may recommend that the assets of the Endowment Fund bedelivered to The Lutheran Church--Missouri Synod Foundation for investment managementor to any other qualified investment management institution. Any agreement entered intofor the management of the Endowment Fund shall be valid only if approved by a simple majority of the Board of Directors.

C. The Endowment Committee shall meet at least once each calendar quarter.

D. The Endowment Committee shall establish such written rules and regulations asmay be necessary for the conduct of its business subject to approval by the Board. It shall adopt standards and goals to guidein the expenditure of the income from the Fund, which it may amend, all within the statedpurposes of the Fund.

E.Policies for the distribution of income from the corpus of the Endowment Fund shall be established by the Endowment Committee, subject to relevant laws and regulations and subject to approval by the Board. The spirit of the Endowment Fund is to refrain from spending down the corpus (or principal) of the Fund, especially with regard to unrestricted funds.

F. The Endowment Committee shall maintain accounts with such financialinstitutions as it may by resolution authorize and determine, subject to Board of Directors approval. All checks and otherdocuments transferring or expending any funds or assets in the Endowment Fund shall be executed bythe Treasurer or Chairman of the Board of Directors.

G. The Endowment Committee may employ and reasonably compensate from Endowment Fund income, accountants, agents, investment advisors, and attorneys to assist and advise in the execution of the Endowment Fund. Reasonable care is to be used in the selection and in the reliance of the advice of the persons so employed. However, the Endowment Committee shall not employ, engage for services, or pay commissions to members of the Endowment Committee, members of the Board of Directors, or any other individual(s) whose service might be deemed a conflict of interest.

H. The Endowment Committee shall maintain complete and accurate books ofaccount and may employ such professional help as it deems necessary in this task.

I. The Secretary, appointed by the Chairman, shall maintain complete and accurateminutes of all the meetings of the Endowment Committee and make available a copy thereof to eachEndowment Committee member and the Administrative Manager of the congregation.

J. The Chairman, or a member of the Endowment Committee designated by the Chairman, shall preside at allmeetings of the Endowment Committee.

K. No member of the Endowment Committee shall engage in any self-dealing ortransactions with the Endowment Fund in which the member of the Committee has direct or indirectfinancial interest and shall at all times refrain from any conduct in which his/her personalinterests would conflict with the interest of the Endowment Fund.

L. The Endowment Committee, in accordance with its written policies andprocedures, shall make recommendations no less often than annually to the Board of Directors for the distribution ofincome and principal from the Endowment Fund. The Board of Directors may accept, amend, or reject therecommendations of the Endowment Committee.

6.FISCAL YEAR

A. For tax, accounting, distribution, or other purposes, the fiscal year of

St. Matthew shall be the fiscal year of the EndowmentFund.

7.DUTIES

A.Within two months after the close of each of the Endowment Fund's fiscal years, and at such other time(s) as is deemed convenient, an itemized written statement accurately reflecting the position of the Endowment Fund's income and corpus accounts shall be submitted to the Board and made available to the congregation. The report will include the receipts, disbursements and changes therein since the previous accounting,

B. Gifts and contributions from any individual, family, firm or corporation, inmoney, in securities, or in any other form of property, including, by way of explanation andnot in limitation, direct gifts for the purpose of the Endowment Fund, gifts in memory of anydeceased person or in appreciation or recognition of any living person, gifts in the form of adevise or bequest under will or trust instrument, and gifts or proceeds or portions ofproceeds of insurance, annuities, or endowment policies or contracts, may be received by theEndowment Fund at any time, subject to the Endowment Fund Gift Acceptance Policy.

C.Means for formally acknowledging the receipt of each gift and contribution shallbe established and maintained, including, whenever feasible, a designation of the valueascribed to each gift.

E. All Funds and property in the Endowment Fund shall be kept and maintainedseparate, distinct, and independent from the funds and property otherwise belonging to St. Matthew. However, the Endowment Committee shall in no event be required to makephysical segregation of the assets of the Endowment Fund in order to conform to the directions of anyindividual donors, but may establish separate accounts in its accounting records.

F. The Endowment Committee is to inform the members of the congregation at leastannually of the purpose of the Endowment, and may periodically arrange for members ofthe congregation to meet with professional counselors in the areas of charitable giving,wills, bequests, insurance, etc.

G. All new members of the Endowment Committee are to receive a copy of theBylaws in order to become acquainted with the function and purposes of the Endowment Fund.

  1. POWERS

The provisions of this Article shall govern the management of the Endowment Fund:

A. The property constituting the corpus of the Endowment Fund shall be investedand reinvested in any kind of property, (whether real or personal, tangible or intangible,and/or domestic or foreign), including, but not limited to, securities, real estate, oil, gas, andother natural resources and/or accounts or certificates of banks or other lending institutions,and each investment shall be managed and protected in accordance with the principlesherein established. In exercising the authority granted in this Section, the decisions withrespect to investment shall be guided by the concept of a prudent investor whose investment purpose includes both income and capital appreciation. It is further understood that any part or all of the Endowment Fund may beinvested in obligations of the Michigan District Church Extension Fund, Lutheran Church--Missouri Synod, Ann Arbor, Michigan. In amplification, but not limitation, of the foregoing, authority is granted:

  1. To acquire interests in property by purchase, lease, rental or other method; to sell,option, exchange, redeem or convert any property interests; and to rent or leaseproperty of the Endowment Fund;
  2. To exercise all rights and privileges accruing to a holder of securities, including allvoting, conversion, subscription, and preemptive rights; to deposit any securities with,delegate discretionary power to, and participate, cooperate and contract with, as amember or otherwise, any protective committee or security holders; and to effectuateany merger, consolidation, dissolution, reorganization or financial adjustment of theissuer of any securities and/or any transfer, demise, or encumbrance of any of itsproperties;
  3. To manage and/or develop any real property owned, leased or otherwise held by theEndowment Fund; to erect, repair, remodel, reconstruct, demolish or remove buildingsor other improvements on it; to partition or subdivide it; to dedicate all or any part ofit to public or semi-public use, and to grant easement or other charges with respect toit;
  4. To abandon any property interest deemed worthless or of insignificant value;
  5. To borrow money from any source, to encumber property of the Endowment Fund andto repay any loan due by the Endowment Fund provided it incurs no acquisitionindebtedness;
  6. To foreclose any mortgage, lien, or other encumbrance, and to purchase theencumbered property, whether through foreclosure or private arrangement;
  7. To establish and maintain, out of income, depreciation, depletion and/or amortizationreserves;
  8. To maintain a portion or all of the property constituting the Endowment Fund in liquidor nearly liquid form, even though little or no income is earned thereon;
  9. To use income or unrestricted corpus funds (irrespective of their derivation) for any purpose of theEndowment Fund and with respect to any property of the Endowment Fund(irrespective of the income, of any, it produces) even if such funds are derived fromthe sale of or income from other property of the Endowment Fund or from a loan(from income or an outside source) using such other property as security.
  10. To receive or reject gifts, both designated or restricted and undesignated or unrestricted.

B. Without limiting the authority otherwise conferred, additional authority isherebygranted to be exercised as is believed to be in the best interest of the Endowment Fund:

  1. To accept and receipt for any inter vivos, testamentary or other transfer of property tothe Endowment Fund;
  2. To hold property, and to negotiate and execute documents on behalf of the EndowmentFund;
  3. To allocate between income and corpus in equitable proportions, any money or otherproperty received, and any loss or expenditure incurred;
  4. To vote, or refrain from voting, securities having voting privileges, and to give anytype of proxy (with or without directions) to vote the same;
  5. To make division and distribution of property held in the Endowment Fund (wheneverdirected to do so) either in kind or in cash, or partly in kind and partly in cash and forsuch purpose to set values upon any property of the Endowment Fund;
  6. To protect the Endowment Fund and its property by insurance against damage, loss orliability;
  7. To establish checking account(s) in which may be deposited income and/or corpuscash; and
  8. To employ, at the expense of the Endowment Fund, attorneys, investment counsel,brokers, custodians of assets, and other agents and employees.

Article 11. Amendments

(The wording of Article 11 is the same as the present Article 10 of the Bylaws)