To begin investment, an organization should complete the investment custody agreement and obtain a minute of approval and authorization from their Monthly Meeting for Business, board, or other appropriate body. Send the agreement with a letter indicating the name(s) of your individual account(s) and whether income is to be paid out or reinvested. Additional information on the purposes, the restrictions or the historical origins of the assets in each account will also help us to maintain more complete and accurate historical records.
The payout ratio has been set at 5.5% since 2003 and is reviewed annually by the Investment Committee and the Board of Directors. The payout ratio was set at 6% for the period December 1993 through December 2002.
The value of your assets is determined by unit valuation. The market value of a unit of investment in the Consolidated Fund is determined at the end of each month and statements are sent after the end of each calendar quarter.
Once you become a constituent organization, additional money can easily be deposited at any time. Mail the check with information indicating your organization or Meeting and the name of the specific fund(s) to be credited. (Call the office for instructions to wire transfer.)
As with additions, withdrawals can be made at any time. A request should be made in writing, noting the amount and the specific fund from which the withdrawal should be made. Withdraws are processed as soon as received and often within 1-2 days. However, please allow 7-10 to receive your check following a request for withdrawal, to allow for occasional delays that can occur in obtaining signatures and mailing.
There is an exception with the complete withdrawal of any account (or with the withdrawal of any amount over 90% of the value of the account at the previous month's unit value calculation). When the request for such a withdrawal is first received, a percentage (generally 90%) of the account's value as of the last month's valuation is paid out. The balance, however, cannot be paid out until the current month's unit value is determined. (The prior month's valuation is used as a guide in determining how much can safely be advanced to a constituent without danger of overpayment.)
If a deposit is sent to open an additional account, include an explanation of the purpose of the account and, if possible, a quotation of provisions from the will or other governing document, if any. Organizations are encouraged to open separate accounts for Funds for different purposes or with significant trusts restrictions, so that the income and principal value of each can always be individually determined. Also, funds restricted as to use of principal should not be combined with unrestricted funds. In practice this usually means that moneys for scholarships, graveyards, general use, etc., should be in separate accounts. In contrast, multiple accounts for the same purposes are discouraged.
Income distribution statements are mailed with the semi-annual distributions, listing each account belonging to your organization and the respective income earned. Period end statements are prepared as of the end of each quarter and list current balances in income and principal cash; the number of units held with their current market value; and any participation or withdrawal of units during the three month period.
In addition, a newsletter which includes performance information, is published quarterly. All constituent organizations will also receive a copy of the Consolidated Fund Annual Report and audit.
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