United Methodist Foundation offers churches and institutions an opportunity to participate in an investment partnership through which assets can be co-mingled for investment. Investing with United Methodist Foundation, Inc. offers the benefits of a commitment to socially responsible investing, greater diversification of investments, and the possibility of minimizing costs and maximizing investment return.
The investments are handled by professional money managers at a much lower cost. While a low minimum investment is required, there are no limits on the number of Endowment or Revocable accounts a church may open. Three investment options are currently offered.
A church may have multiple accounts, and the Foundation does the sub-accounting. This is a big help for Treasurers and Financial Secretaries. The quarterly reports the Foundation provides help meet the Charge Conference reporting requirements as described in The Book of Discipline.
The Foundation charges a low annual fee which includes all investment management and administrative expenses. The fee is a set percentage which varies from fund to fund. There are no additional fees for deposits or withdrawals or to open or close accounts. A portion of this fee enables UMF to provide planned giving and stewardship education throughout the Conference.
United Methodist Foundation invests all funds according to the Social Principles of the United Methodist Church as described in The Book of Discipline and the Statement of Investment Guidelines published by the General Council on Finance and Administration of the United Methodist Church. The Foundation will not knowingly invest in any company whose activities are contrary to The Social Principles.
Read more information about socially responsible investing.
UM Foundation offers three funds for investment.
First is the Balanced Fund -- a well-diversified mix of equity and fixed-income assets (65% / 35%) that has, over the last 25 years, provided a return on investment of 9.64% after fees.
Second is the Short Term Investment Fund -- in keeping with UMF’s commitment to invest according to The Social Principles of the United Methodist Church, this fund is invested with the Self-Help Credit Union based in Durham, NC. The Self-Help Credit Union is a federally insured, state-chartered entity founded in 1984 to “create ownership and economic opportunity for minorities, women, rural residents, and low-wealth families” – segments of our society which are typically under-served by conventional lenders. Read more about the Short Term Investment Fund.
The third option is the Fixed Income Fund -- a bond fund consisting of 100% high grade, inflation protected corporate and government treasuries (TIPS – Treasury Inflation Protected Securities / CIPS – Corporate Inflation Protected Securities) offered as an alternative to CD investments.
The primary Investment Management Goal of United Methodist Foundation is to obtain the greatest possible return on invested funds at the lowest possible risk to maximize a balanced return of current income and growth of principal through a portfolio diversified between equities and fixed income – all actively managed expert professionals. And, to accomplish this Primary Goal meeting all administrative responsibilities based upon the Social Principles of the Church.
View a graph of the asset allocation guidelines.
United Methodist Foundation encourages church leaders adopt a spending policy for annual distribution based upon the concept of total return. This spending policy provides for an annual distribution based upon a specific percent of the total value of the fund. With an appropriate spending policy in place, church financial leaders not only provide good stewardship of permanent funds but also support good budgeting practices by creating an opportunity for predictable annual income in support of a variety of ministerial needs. Over time, an appropriate spending policy both protects capital and provides an opportunity for assets to grow.
For the last 50 years, United Methodist Foundation, Inc. has been a vital part of the stewardship ministry of the NC Conference. UMF provides socially responsible investment management and planned giving education for individuals, churches, and ministries throughout eastern NC.
In the last 10 of those 50 years, the Foundation’s Balanced Fund grew in value by $47 million dollars. During that time, the Fund distributed another $57 million dollars to support ministries, missions, scholarships, church construction, and other dreams and visions of UMF account holders.