Frequently Asked Questions
The Church Foundation (TCF)
is a nonprofit corporation, chartered in 1926, as a service organization for
the Diocese of Pennsylvania. TCF serves trustee and investment advisor for assets
owned by churches, chapels, missions, and institutions in the diocese. Our
primary purpose is to oversee the Consolidated Fund, a balanced portfolio of
stocks and bonds, for the diocese and other church-related institutions.
The investment philosophy and
objectives of The Church Foundation is to provide the best rate of return for
our investors through prudent investments and a distribution payout vehicle to
fund mission and ministry. The Church Foundation's Investment Committee and
Board of Directors work closely with our Investment Manager, T. Rowe Price, to
ensure the preservation and growth of the investments so that our participants
have those assets available when needed.
Investors with The Church
Foundation are purchasing units or shares in the Consolidated Fund. The
Consolidated Fund is a carefully structured array of equities and fixed income
instruments designed to meet the investment policy statement guidelines
established by The Church Foundation Board of Directors.
The Church Foundation's
management fees are reviewed and set annually by the board of directors. For
2020, TCF charges a fee of .29% to cover administrative and operational costs.
Our investment manager, T. Rowe Price, charges about .55%, which are applied net of fees. Total fees are currently at .84%, which is well below TCF's total fees goal of less than or equal to 1%.
The Church Foundation strives
to obtain for investors a cash distribution that supports current operating
needs for mission and ministry and honor its fiduciary duty to preserve the
future earning power of the investments in all sorts of market conditions.
A distribution spending rate
is reviewed and set annually by the board of directors based upon the
investment committee's recommendation. Once the spending rate is set, cash
distributions are calculated by applying the approved spending rate to the
trailing twelve-quarter average of the Consolidated Fund's fair market value as
of the end of the previous calendar year. We further determine a cash
distribution amount per unit (share) price by dividing the total units in the
Consolidated Fund held at the end of the previous calendar year by the total
estimated cash distribution amount calculated for the current year.
Lori has been with The Church Foundation since December 2014. She began working with TCF as the Operations Manager and was named the Executive Director by the board of directors on July 1. Lori is am an administrative professional with nearly 30 years of experience and holds a BS in finance. She is currently working on her master's in nonprofit management.
Ryan is a management
professional with nearly ten years of experience. He has been with The Church
Foundation since late August 2019. Ryan attended Ursinus College and West
Chester University, majoring in management and accounting.
T. Rowe Price has been The
Church Foundation's investment managers since 2007. The Church Foundation's
investment committee takes its role seriously as a fiduciary and keeps a close
eye on activity and performance. Overall, the committee is pleased with T. Rowe
Price and has no plans to make any adjustments or changes.
SunTrust Bank's Foundation
and Endowments Specialty Practice have been The Church Foundation's fund
accountant and custodian since 2017. Our portfolio is actively
managed.
The Church Foundation has
generally invested 70% equity and 30% fixed income/debt, and maintains approximately
$100,000 in cash to cover non-distribution withdrawals.
No.
At this time, the
Consolidated Fund, a high quality co-mingled investment portfolio, is the only
fund option.
Yes. The quarterly review
available on our website list the funds that make up the Consolidated Fund.
The quarterly review shows the asset allocation of the funds within the Consolidated Fund.
A minimum amount of
$2,000 is recommended, although it is not mandatory.
While all investors receive
quarterly statements, Ryan and I both are available on-demand. We pride
ourselves on being customer service driven and typically provide the same day
response to a question or request.
The consolidated fund is
available to all Episcopal related entities within the Diocese of Pennsylvania.
What is the investment philosophy and objectives of The Church Foundation?
What is the Fee Schedule?
How is the distribution amount calculated?
What is the background and experience of the team, including investment managers?
Are you an actively-managed or passively-managed fund?
Are you invested in anything other than debt and equity securities or funds?
What fund options do you offer?
Are you mostly invested in index and mutual funds?
What is the diversification within these funds? Large-cap, mid-cap, small-cap. Domestic US vs. International?
Are there any minimum amounts for your funds?
What is your frequency of interaction with your clients? e.g., monthly call plus event-triggered? Do you have non-church clients?
Who can invest in the Consolidated Fund?
Executive Director
