Frequently Asked Questions | The Church Foundation

What is the investment philosophy and objectives of The Church Foundation?

The Church Foundation (TCF) is a nonprofit corporation, chartered in 1926, as a service organization for the Diocese of Pennsylvania. TCF serves as trustee and investment advisor for assets owned by churches, chapels, missions, and institutions in the diocese. Our primary purpose is to oversee the Consolidated Fund, a balanced portfolio of stocks and bonds, and the Short Term Investment Fund, designed to provide investors with consistent, low-volatility performance for the diocese and other church-related institutions.

The investment philosophy and objectives of The Church Foundation are to provide the best rate of return for our investors through prudent investments and a distribution payout vehicle to fund mission and ministry. The Church Foundation's Investment Committee and Board of Directors work closely with our Investment Manager, T. Rowe Price, to ensure the preservation and growth of the investments so that our participants have those assets available when needed.

Investors with The Church Foundation are purchasing units or shares in the Consolidated Fund and/or the Short Term Fund. The Consolidated Fund is a carefully structured array of equities and fixed-income instruments designed to meet the investment policy statement guidelines established by The Church Foundation Board of Directors. The Short Term Fund has a target allocation of 50% Ultra Short-Term Bond Fund and 50% U.S. Treasury Money Market Fund.

What is the Fee Schedule?

Consolidated Fund

The management fees are reviewed and set annually by the board of directors. For 2024, TCF charges a fee of .30% to cover administrative and operational costs for the Consolidated Fund. The fee is combined with the investment management fees charged by T. Rowe Price, making the total fees approximately .86%.

Short Term Investment Fund (STF)

The STF management fee is currently .10% and is assessed quarterly. Please note that combined with the investment management fees charged by T. Rowe Price, total fees are approximately 0.32%.

How is the distribution amount calculated?

Consolidated Fund

The Church Foundation strives to obtain for investors a cash distribution that supports current operating needs for mission and ministry and honor its fiduciary duty to preserve the future earning power of the investments in all sorts of market conditions.

A distribution spending rate is reviewed and set annually by the board of directors based upon the investment committee's recommendation. Once the spending rate is set, cash distributions are calculated by applying the approved spending rate to the trailing twelve-quarter average of the Consolidated Fund's fair market value as of the end of the previous calendar year. We further determine a cash distribution amount per unit (share) price by dividing the total units in the Consolidated Fund held at the end of the previous calendar year by the total estimated cash distribution amount calculated for the current year.

Short Term Investment Fund

There is no distribution for the STF.

What is the background and experience of the team, including investment managers?

Executive Director Lori Daniels joined TCF in 2014 as an Operations Specialist, transitioning to Operations Manager. She was promoted to Executive Director in 2019 due to her leadership talents, positive business relationships, and a solid vision for TCF's future.

Lori holds an M.S. focused on Management with Nonprofit Specialization as well as a B.S. in Finance and Humanities from the University of Maryland University College. She will continue expanding her expertise in nonprofit management, endowments, and investments.

Operations Manager Lisa Reinhardt's experience includes co-developing practices that standardize and streamline workflow. She also created an online presence for St. James’ to communicate with parishioners, now a lifeline for remote parishioners. She plans to help create both of these for TCF including periodic newsletters to strengthen relationships with parishioners. Lisa holds a B.S. in Communication Studies and truly values everyone she encounters.

T. Rowe Price has been The Church Foundation's investment manager since 2007. The Church Foundation's investment committee takes its role seriously as a fiduciary and keeps a close eye on activity and performance. Overall, the committee is pleased with T. Rowe Price and has no plans to make any adjustments or changes.

What are the funds made up of?

The Consolidated Fund is generally invested in equity, fixed income/debt, and other entities, and maintains approximately $100,000 in cash to cover non-distribution withdrawals.

The Short Term Fund is a 50/50 mix of U.S. Treasury Money Fund and Ultra Short Term Bond Fund.

What fund options do you offer?

TCF offers the Consolidated Fund, a high-quality co-mingled investment portfolio, with quarterly distributions. The quarterly review is available on the website lists the funds that make up the Consolidated Fund.

TCF also offers the Short Term Investment Fund, a diversified portfolio of low-risk assets to preserve capital and minimize exposure to market and interest rate fluctuations. The Short Term Investment Fund is a 50/50 split of T. Rowe Price's Ultra Short Term Fund and U.S. Treasury Money Fund and the fact sheets are available on our website.

What is the diversification within these funds? Large-cap, mid-cap, small-cap. Domestic US vs. International?

Consolidated Fund

The quarterly review shows the asset allocation of the funds within the Consolidated Fund.

Short Term Investment Fund

This fund is made up of T. Rowe Price's Ultra Short-Term Bond Fund and U.S. Treasury Money Fund.

Are there any minimum amounts for your funds?

A minimum amount of $2,000 is recommended, although it is not mandatory.

What is your frequency of interaction with your clients? e.g., monthly call plus event-triggered? Do you have non-church clients?

While all investors receive quarterly statements, Lisa and I both are available on-demand. We pride ourselves on being customer service driven and typically provide the same day response to a question or request.