RESOLUTION ESTABLISHING

ZION EVANGELICAL LUTHERAN CHURCH 

TRUST FUND

1. Zion Evangelical Lutheran Church, Huron, Ohio has a living endowment of faithful members with rich gifts and varied talents.  “As each has received a gift, employ it for another, as good stewards of god’s varied grace whoever renders it by the strength which god supplies, in order that in everything God may be glorified.”   1 Peter 1:10-11 

2. Now therefore, in order to establish a permanent Trust Fund within the church to enable the further growth of Zion Lutheran Church programs, its ministries and stewardship opportunities: 

3. Be it resolved that the membership of Zion Evangelical Lutheran Church establish a Trust Fund to receive and administer bequests estates, insurance, memorials and other assets, to be perpetual and perpetuating, and, 

4. Be it further resolved that the efforts of Zion Lutheran Church in establishing the Trust Fund be dedicated to the Glory of Almighty God, and, 

5. Be it further resolved that the purpose of the Trust Fund is to enhance the work at the church by establishing new ministries and stewardship opportunities additional to and apart from the general operation of the congregation, and, 

6. Be it further resolved that the membership of Zion Lutheran Church Council at called meetings decide for what purposes the Trust Fund income is to be used upon the recommendation of the Trust Fund Committee, and, 

7. Be it further resolved that the Trust Fund Committee shall be the custodian of the Trust Fund, and, 

8. Be it further resolved that while the Zion Lutheran Church has every intention of using the Trust Fund as set forth in these resolutions, it does recognize that with the passage of time and changing circumstances, there may be a time when it is not feasible to utilize the Trust Fund as was intended.  Should that situation develop, Zion Lutheran Church or its successors in interest shall then be free to make such other use of the income and principle as is consistent with the charitable purposes of Zion Lutheran Church in accordance with the provisions of the laws of the state of Ohio, and preserving the principal of those gifts designated to be perpetual, carrying out the donors wishes. 

9. Now therefore in order to carry out the purposes of the Trust Fund and to enable the further extension and stewardship work of Zion Lutheran Church,   

 
THE COMMITTEE 

10. Be it further resolved the committee shall consist of three members, all of whom shall be voting members of Zion Lutheran Church.  Except as herein limited, the term of each member shall be for three (3) years.  After the adoption of this resolution by the congregation, it shall elect three (3) members to the Committee for a term of three (3) years; one for a term of two (2) years; and one for a term of one (1) year.  Thereafter at each annual meeting the congregation shall elect the necessary number for a term of three (3) years.  No member shall serve more than two consecutive terms.  A partial term shall not be counted for this purpose.  A former committee member may be re-elected after a lapse of twelve (12) months between their election for a third term and the completion of their second term. 

11. In the event of a vacancy on the committee, the remaining members by the affirmative vote shall elect a member to fill the vacancy until the next annual meeting of the congregation, at which time the congregation shall elect a member to fill the vacancy.  In the event the vacancy is not filled within thirty (30) days after it occurs, the congregation shall fill it at a special meeting called for that purpose. 

12. The nominating committee of the congregation shall nominate for this committee and report at the annual meeting in the same manner as it does for other offices or committees.  Nominations may also be made from the floor.  The person receiving the greater number of affirmative votes at the annual meeting shall be elected. 

13. All Trust Fund Committee members shall endeavor to maintain a high degree of communication with the Church Council, and members of the congregation to nurture the total life and mission of the church and of the fund.  Each committee member must be a member in good standing of Zion Lutheran Church.  A Trust Fund committee member may not serve concurrently on the Church Council.  The Pastor of the church and the president of the Church Council shall be ex-offico non-voting members of the Trust Fund Committee. 

14. The Committee shall elect from its membership a chairperson, treasurer, and secretary. 

15. The committee shall meet at least once every quarter (3 months) at a time fixed by resolution of the committee and more frequently as it may be deemed by it for the best interests of the Fund.  The special meetings may be called on twenty four (24) hours written or oral notice to the members of the committee by the chairperson or any one member.  Each member is charged with knowledge of the contents of the minute book.  If all members are present, consent in writing to the minutes by a member of the committee shall constitute their approval of the action reflected in the minutes and taken at the meeting and shall have the same force and effect as though they had been present and voting at the meeting reflected by the minutes. 

16. A quorum shall consist of two (2) members.  The affirmative vote of a majority present and voting shall carry any motion or resolution. 

17. The committee shall establish written rules and regulations as may be necessary for the conduct of its business.  It shall adopt standards and goals to guide in the expenditure of the income from the Fund which it may amend all within the stated purposes of the Fund. 

18. The Committee shall maintain accounts with such financial institution as it may by resolution authorize and determine.  All checks and other documents transferring or expending any funds or assets in the Fund shall be executed by the treasurer and either the chairperson or the secretary of committee. 

19. Any members of the committee with check signing authority, at the expense of the Fund, shall provide a corporate fidelity bond in a principal amount to be determined from time to time by the committee. 

20. The Committee may ask other members of the congregation to serve as advisory members and may employ, at the expense of the Trust Fund income, such professional counseling on investments and legal matters as it deems for the best interest of the Trust Fund. 

21. The Committee shall maintain complete and accurate books of accounts and may employ such professional help as it deems necessary in this connection. The books shall be audited annually by a certified public accountant in time so that such audit report will be on file at the time of the annual meeting of the congregation. 

22. The secretary shall maintain complete and accurate minutes of all meetings of the committee and supply a copy thereof to each member within seven (7) days after the meeting.  Each member shall keep a complete copy of minutes to be delivered to their successor. 

23. The chairperson, or the member designated by the chairperson, shall preside at all committee meetings. 

24. No member of the committee shall engage in any self dealing or transactions with the Fund in which the member of the committee has direct or  indirect financial interest and shall at all times refrain from any conduct in which their interests would conflict with the interests of the Fund.  
 

    COMMITTEE DUTIES 

25. The Trust Fund Committee, at called meetings of the congregation, shall render a full and complete account of the administration of the Trust Fund during the preceding year. 

26. The Trust Fund Committee may receive funds through gifts, memorials, bequests, wills, estates, insurance, etc. from any individual or corporation or organization or from any other source in cash or in other property acceptable to them.  All trusts funds and property shall be kept and maintained separate, distinct and independent from the funds and property otherwise belonging to the church. 

26.1  The Trust Fund Committee shall in no event be required to make physical segregation of the assets of the Trust Fund in order to conform to the directions of any individual donors, but may establish separate accounts in its accounting records. 

26.2   The Committee is to inform the members of the congregation the purposes of the Fund, and may periodically arrange for members of the congregation to meet with professional counselors in the areas of charitable giving, wills, bequests, insurance, etc. 

26.3   All new members of the Trust Fund Committee are to receive a copy of the Trust Fund format to become acquainted with the function and purpose of the Fund. 
 

COMMITTEE POWERS 

27. In the administration of this Trust Fund, the Trust Fund Committee shall have all powers and authority necessary to carry out the purposes of the Fund, including the following powers and authority on behalf of Zion Lutheran Church. 

27.1 To take, have hold, sell, exchange, rent, lease, convert, invest, reinvest, and in all other respects to handle and manage and control the Trust Fund, or any part thereof, as they in their judgment and discretion shall deem wise and prudent. 

27.2 To retain any property in the form in which received; to convert and reconvert the  Trust Fund, or any part thereof, into other kinds and forms of property, real or personal, or mixed; and to invest or reinvest the Fund or assets herein, or any thereof, as they shall deem wise and prudent, including in such common or preferred stocks, bonds, debentures, mortgages, notes or other securities, investments or property whether real or personal, which they in their absolute discretion may select or determine, and including, without limitation, savings deposit of any bank, mutual savings bank, federal home loan bank or savings and loan associations, or in the Evangelical Lutheran Church in America Loan Fund, or in any common trust fund, mutual fund, or any like fund, subject to the usual standards of prudence required of trustee of similar funds. 

27.3 To receive the income, profits, rents and proceeds of the Trust Fund and collect and receipt for the same, and pay all administrative and necessary expenses in connection with it.  Expenses are to be paid form the Trust Fund income. 

27.4 To make, execute and deliver all instruments necessary or proper for the accomplishments of the purposes of the Zion Lutheran Church Trust Fund or of any of the foregoing powers, including deeds, bills of sale, transfers, leases, mortgages,

assignments, conveyances, contracts, purchase agreements, waivers, releases and settlements. 

27.5 To contribute, donate, support or distribute, from time to time, for the purposes herein stated, such payments for amounts as the Trust Fund Committee at its discretion shall determine. 

28. To determine what is principal and income according to accounting procedure. 

28.1 To hold investments in the name of the Zion Lutheran Church Trust Fund on behalf of the congregation and to sign checks and all other necessary documents on behalf of the congregation in furtherance of the Trust Fund purposes. 

28.2 To employ and reasonably compensate from the Trust Fund income, accountants, agents, and attorneys to assist and advise in the execution of the Trust Fund, without liability for their omissions. or neglect, but using reasonable care in their selection, and to rely on the advice of the persons employed. 

28.3 The Trust Fund Committee shall not be liable for any losses which may be incurred upon investments of the Trust Fund except to the extent that such losses shall have been caused by bad faith or gross negligence of the committee members.  No member shall be personally liable as long as he or she acts in good faith and with ordinary prudence in discharging the duties of the office.  Each committee member shall be liable only for his or her own willful misconduct or omissions in bad faith.  No committee member shall be liable for the acts or omissions of any other committee member, or of any accountant, agent, attorney or custodian with reasonable care. 

28.4 The Trust Fund Committee members shall not receive any compensation, but may be reimbursed from the income of the Trust Fund for expenses reasonably incurred. 

THE CONGREGATION 

29. The congregation may upon recommendation by the Trust Fund Committee decide when and if any Fund principal, or corpus, shall be used by a two-thirds (2/3) majority vote of those present at a legally called meeting of the congregation.  This holds true if the principal, or corpus is ever needed in the event of a catastrophe, or dire emergency.  

30. The Trust Fund Committee shall supply the Council with sufficient information to make the best use of the Trust Fund according to its purposes. 

31. The Trust Fund Resolution may not be altered or amended except by a two-thirds (2/3) vote of the members present at a called meting of the congregation for the purpose of amending this resolution. 

TAX EXEMPTIONS 

32. Any gifts to the Trust Fund, as well as all income derived therefrom, shall be used exclusively for religious, charitable and educational purposes with Section 501  (c)(3)

of the Internal Revenue Code of 1954 or the corresponding provision of any future United State Internal Revenue Law.  This Trust Fund is created and shall be operated exclusively for church purposes.  No part of the income or property of this Fund shall inure to the benefit of or be distributable to any member, director, or officer of the church or to any other private person, except that the Trust Fund Committee is authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth herein.  No part of the activities of the Trust fund shall be the carrying on of propaganda or otherwise attempting to influence legislation, and it shall not participate in or intervent in (including the publishing or distribution of statements) any political campaign on behalf of any candidate for public office. Not withstanding any other provision of this document, the Trust Fund shall

      (a) not carry on any activities not permitted to be carried on by an entity exempt from federal income tax under Section 501 (c) (3) of the Internal Revenue Code of 1954 or the corresponding provision of any future United State Internal Revenue Law or

      (b) do any act which would render contributions to the Trust Fund non-deductible under Section 170 (c) (2) of the Internal Revenue Code of 1954 or the corresponding provision of any future United States Internal Revenue Law. 

This Trust Fund may be dissolved in accordance with the laws of the State of Ohio.  Upon dissolution of this Trust Fund, and after the payment of all liabilities, obligations, costs and expenses incurred by this Trust Fund, any remaining assets shall be distributed to such entities organized and operated exclusively for one or more purposes described in Sections 170 (c) (2) of the Internal Revenue Code of 1954 or the corresponding provision of any future United States Internal Revenue Law. 

THIS TRUST FUND RESOLUTION, accepted by the congregation, via recommendation by the church Council, at a legally called congregational meeting is hereby made an Addendum to the Constitution of Zion Evangelical Lutheran Church and all members are made privy to its contents and uses. 

Dated this  17 day of January 1988 

ZION EVANGELICAL LUTHERAN CHURCH COUNCIL 

By  Edward R. Schilman (President) 

By  Connie Solberg  (Secretary)

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