Handling Undesignated Gifts to Pullen: Rule Changes
The Gifts, Endowments, Memorials, and Scholarships (GEMS) Committee recently adopted new rules for the use of large, undesignated gifts given or left to our church.
Background
Before this rule change, the bylaws of the church gave full decision-making power over undesignated gifts to GEMS and GEMS alone. GEMS was not required to consult with any other council or committee, or with the congregation, on how undesignated funds were to be spent. This stipulation stood in stark contrast to our constitutional requirement that the congregation vote on the use of any surplus greater than 1% of our annual budget. At the same time, some Pullen members were concerned that subjecting decisions about large, undesignated gifts to congregational approval would prevent “big ideas.”
The New Rules
After considerable discussion, GEMS agreed to the following rules going forward:
Unless GEMS, after consulting with the Finance Committee, identifies a pressing fiscal concern, decisions about how to use large, undesignated gifts should be made after the estate is fully settled. This allows for more complete information about the scope and potential impact of the gift. Funds from undesignated gifts received prior to an estate being fully settled will be held in an interest-bearing account.
For gifts equal to or greater than 10% of the budget in the year in which the final payment of any gift is received, GEMS, after seeking advice from the Finance Committee, will submit a general plan for the use of the funds to the congregation for approval by a simple majority of those present at a congregational meeting.
We know there is some disagreement about the proper level at which this process should be triggered. We also know that some feel that these rules are unnecessary or even counterproductive. But the rules are a move toward more transparency and accountability than the previous rules. As such, we hope they also represent a move to ensure that we use such funds in the way that best suits the priorities of our church community.
As per our constitution, the Finance Committee has reviewed and approved these rule changes. Please direct any thoughts to Mark Nance.
-Libby Stephens
