About the Endowment
The First Presbyterian Church Endowment Fund was organized as a separate corporation in 1969, and had grown to $2.9 million by December 31, 2018. The stated purpose of the Endowment Fund is “to establish and hold in perpetuity a fund, the income and principal of which may be used from time to time as the Board of Directors of the Endowment Fund may determine, either wholly or partially, for the increase of the Fund, for the uses and purposes of First Presbyterian Church, Richmond, Virginia, or for such other purposes as may be appropriate and permitted.”
The Board of Directors of the Endowment Fund consists of six persons, at least two of whom are required to be active members of the Session of First Presbyterian Church. Two directors are elected annually by the Session for three-year terms. The financial statements of the Endowment Fund are prepared separately and are not consolidated with the financialstatements of First Presbyterian.
The Endowment Fund is currently comprised of eleven different sub-funds, established at different times and for different purposes. The First Fund would represent the twelfth sub-fund of the Endowment Fund.
Since the mid-1970s, the Endowment Fund has made an annual contribution to the operating budget of First Presbyterian. The annual contribution to First Presbyterian Church is calculated based on the average balance, for the most recent three years, of the assets held at year end in these funds. In 2018, the amount distributed from the Endowment Fund to First Presbyterian Church was $94,000, which amounted to 4% of the average end-of-year amount in the funds for the most recent 3 years. The 4% distribution policy reflects the Board’s determination that such a rate assures the long-term sustainability of the source funds in light of historical and expected investment returns.
At year-end 2018, approximately 90% of the total assets held by the Endowment Fund were invested in The Investment Fund for Foundations (TIFF) Multi-Asset Fund. The remaining funds not held by TIFF, consisting of a portfolio of fixed-income and dividend paying securities, are held directly by the Endowment Fund and used for day-to-day cash management purposes. In January 2019, the Endowment Board of Directors voted to change investment managers and appointed Blue Edge Capital as the new investment manager.