Common Fund Features, Options and Fees

Quarterly Reports

In addition to the investment options, the Common Fund provides quarterly investment reports on the performance and activity for each account 10 business days following the end of the quarter.

Distributions

Along with reporting, the Common Fund generates distributions on a schedule that meets the church’s/agency’s budget planning needs. The amount distributed can be a percentage of total assets, a fixed dollar amount, or income only. You can also choose to reinvest all earnings and not take a distribution. This feature helps churches and agencies comply with restrictions on distributions as imposed by benefactors, the church council, and/or the trustees.

Contributions and New Investments

Additions to current investments and the creation of new funds can occur at any time during the month. There is no need to wait until the end of the month or quarter to put the church’s/agency’s money to work. Once a new or additional investment is received by Kaspick, it is invested and put to work within five business days.

Change Sheets

Circumstances and needs change. As a result, every November we distribute a Common Fund Change Sheet. This allows you to change the investment allocation, distribution schedule, and distribution amount for the upcoming year, as well as to add or remove people who are authorized to make decisions for the funds.

By-laws

Besides helping churches and agencies better manage and invest their funds through the Common Fund, we help churches and agencies organize their permanent funds and endowments. A considerable amount of time is spent revising and developing by-laws that speak to the unique needs and interests of each church and agency. If your church would like assistance with developing investment and endowment policies that work, please contact us.

The Moravian Common Fund offers growth, growth and income, balanced, or income portfolio options, designed to meet the varying needs and strategies of individual churches and agencies.

• Growth Allocation of 70% equities and 30% fixed income;
• Growth and Income Allocation of 60% equities and 40% fixed income;
• Balanced Allocation of 50% equities and 50% fixed income; and
• Income and Growth Allocation of 40% equities and 60% fixed income.

The four options allow trustees to look at the investment needs of each endowment and permanent fund of the church/agency and select the allocation that best meets the investment goal and needs for each fund.

For example, a church has three endowment funds: scholarship, cemetery, and building. The cemetery fund must preserve the value of the invested assets and generate income for the care and upkeep of the cemetery; therefore, the Income or Balanced Fund may be the right choice. The scholarship fund, on the other hand, needs to grow and generate funds from income and appreciation for the annual award to a deserving student. In this case, the Balanced or Growth Fund might be better. Finally, the building fund is a reserve set aside for a planned renovation and expansion effort in five or more years, so the Growth Fund might be best.

Neither Kaspick nor the MMFA can or will predict investment returns. However, information about expected rates of return based on past rates is available.

While a portion of the fee pays for Kaspick’s services, part of the fee supports our operation and work with individuals who make planned gifts. Since 1998 our GiftLegacy ministry has aided Moravians in creating and planning over $45,000,000 in planned and outright gifts for local congregations and agencies.