Business Rules for the Consolidated Fund of The Church Foundation
The Consolidated Fund is a common trust fund similar in design and function to those maintained by commercial trust companies and banks. Assets of various separate trusts are combined and invested for return.
Ownership is evidenced by notional units, which are purchased or redeemed in a given month using the prior month end value per unit.
As of each calendar month-end, the market value of the portfolio of the Fund is determined and divided by the total number of units to obtain the month-end value per unit.
Transactions in units of the Fund throughout a given month are purchase/redeemed using the prior month-end value per unit
Notice of intent to purchase or redeem units must be given by the 25th of each month for processing.
Amounts necessary to purchase units must be present in the form of collected funds at SunTrust Bank by the end of the last business day of the month (wire transfers must be completed by 2:00 pm Eastern Time on that day).
Proceeds from redemption of units will be available for disbursement no later than the tenth business day following month-end.
Payouts are distributed quarterly based on the number of units held by an investor at the month end prior to the quarter end, and in accordance with Pennsylvania law 20 Pa. C.S. Section 8113.
The Spending Rate used to calculate annual income distributions is determined by the Board of Directors based on advice of the Investment Committee as soon as is practicable after each calendar year-end.
Statements of account activity are provided quarterly .
All accounts for which The Church Foundation is trustee of record receive income distributions based on the Spending Rate.
In cases in which the Foundation is not trustee of record, the beneficiary of the account may request a spending rate that is in compliance with Pennsylvania law, which will be approved or not by The Church Foundation. If this rate differs from the Spending Rate determined by the Board, sufficient units will be purchased or redeemed to account for the difference.
All participants in the Fund are deemed to have adopted the total return method described 20 Pa. C.S. Section 8113.