Guidance for churches considering managing their own investment portfolios
Click here to download the document to print - Guidance for Churches Or read on . . . WHERE the Association is holding funds that have been deposited by a member church, the local church Charity Trustees can ask for them to be returned at any time. However, the Association has produced this guidance note to inform the church about issues to consider when planning any new arrangement for the management of their investment portfolio. The benefit of an Agreement is that it records clearly the expectation and obligations of both parties. As an example, the situation should be avoided where a Financial Advisor thinks they are just giving a charity suggestions about investments they might wish to consider and expecting that the charity will carry out its own evaluation, whereas the charity believes that they are receiving specific advice and positive recommendations and then go ahead without appropriate research potentially leading to significant financial loss. Trust Funds Where the Association holds Trust Funds (funds with special rules about how they can be used) more care is needed on the part of the Association to ensure the rules about using the Funds are understood. Within the Finance Team of the Baptist Union Corporation, Trust Funds are occasionally released for investment, but only where professional financial advice confirms the investment is appropriate and the capital is clearly identified as Restricted.
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