Chapel of the Cross Vestry Meeting Agenda April 19, 2018—6 pm in Overlook Room on 2nd floor

I. Call to Order—The RectorII. Approval of Consent AgendaIII. Rector’s Report—The RectorIV. Approval of check signers for 2018-19V. Discussion of gift acceptance policyVI. Family time—Nancy McGuffin

Attachments Consent Agenda

• Minutes from March 15, 2018• Rector’s report• Finance committee report• Long Range Planning committee report• Treasurer’s report• February financials• Faith in Action report• Personnel report• Christian Formation report• Youth and Family Minister report• Chief Admin report

Draft gift acceptance policy

Vestry Calendar April 21-May 5—Early Voting (no voting on Sundays; no voting on ABC Sale Day) April 22—Bishop’s Visit and Confirmation at 10 AM (7:30 and 5:15 services as usual) April 28—ABC Sale May 6—Youth Sunday; directories distributed May 8—Primary Election Day May 11—Commencement and Mothers’ Day May 20—Pentecost Evensong May 27—Move to summer worship schedule (8am, 10 am and 5:15 pm) May 28—Memorial Day; office closed

For a detailed calendar, go to home page of the website and click on the picture of a calendar. OR, use your Church Life app calendar function.

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Consent Agenda Chapel of the Cross Vestry Meeting April 19, 2018

1. Approval of minutes from the March 15, 2018 vestry meeting.2. Acceptance of Rector’s report.3. Acceptance of finance committee report.4. Acceptance of long range planning report (oversight)5. Acceptance of February 2018 financials.6. Acceptance of treasurer’s report.7. Acceptance of Faith in Action report8. Acceptance of Personnel report.9. Acceptance of Christian Formation report10. Acceptance of Family and Youth Minister report.11. Acceptance of Chief Administrator’s report.

Attachments • Minutes from March 15, 2018• Rector’s report• Finance committee report• Long Range Planning committee report• Treasurer’s report• February financials• Faith in Action report• Personnel report• Christian Formation report• Youth and Family Minister report• Chief Admin report

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THE NEXT MEETING OF THE VESTRY

OF THE CHAPEL OF THE CROSS

WILL BE ON THURSDAY, APRIL 19, 2018

IN THE OVERLOOK ROOM

AT THE CHAPEL OF THE CROSS

with the business session to begin at 6:00 p.m.

Draft Minutes of the Vestry of the Chapel of the Cross

15 March 2018

Following the singing of Happy Birthday and a church-shaped chocolate cake to

celebrate the birthday of the Rector, the March meeting of the Vestry of the Chapel of the Cross

was held in the Overlook Room on Thursday, March 15, 2018. Vestry members present were

Dick Taylor (Sr. Warden), Nancy McGuffin (Jr. Warden), David Ross, Ann Henley, Doug Kelly,

Anna Lorenz, Andrew Joyner, Stephanie Perun, Molly Dempsey, and Allison Worthy. Also

present were Elizabeth Marie Melchionna (Rector), Carrie Fraipont (Treasurer), and Nancy Kelly

(Clerk).

The Rector presided and opened the meeting at 6:10 p.m. with a prayer.

Election of Clerk

Mr. Ross nominated and Ms. Worthy seconded the nomination of Nancy

Kelly for another one-year term as Clerk, and the nomination was unanimously approved.

Consent Agenda

The following items were placed on the Consent Agenda (attached):

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-Approval of minutes from the February 15 meeting of the Vestry

-Acceptance of Rector's Report (attached)

-Acceptance of Buildings and Grounds Committee Report (attached)

-Acceptance of Finance Committee Report (attached)

-Acceptance of January 2018 Financial Reports (attached)

-Acceptance of Treasurer's Report (attached)

-Acceptance of Christian Formation Report (attached)

-Acceptance of Parish Life Report (attached

-Acceptance of Chief Administrator's Report (attached)

It was moved by Mr. Kelly, seconded by Mr. Joyner, and passed

unanimously, that the Vestry approve the Consent Agenda.

Rector

The report of the Rector is attached.

Ms. Melchionna passed out the Vestry Resource Guide to Vestry members and Vestry

name tags to newly-elected Vestry members. She also passed around an updated draft of the

Vestry contact sheet and asked everyone to check for errors and to let her know of changes that

need to be made. She suggested that Vestry members who need to contact her do so by e-mail.

Ms. Melchionna began discussion of how a priest/rector should spend his/her time. She

passed out a memo (attached) with eight questions and asked Vestry members to choose the A or

B answer to each question as the best use of a priest's time. The A answers dealt mainly with

pastoral care, while the B answers focused mainly on administrative and oversight issues.

Following Vestry discussion she noted that in a large corporate church such as Chapel of the

Cross, B is what is expected to be the norm. At issue is where a rector can make the greatest

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impact within limited time. Chapel of the Cross is at a crossroads, where, although the rector and

associate priests have traditionally assumed much of the pastoral care, there is now need for

increased lay pastoral care. With this comes the need for communicating to parishioners the role

of lay pastoral care in the life of the church in living out the idea that we are all ministers of God,

but also training in lay pastoral care as parishioners themselves take on more of this

responsibility. On March 26, there will be a summit to reorganize our pastoral care system.

Since her arrival at Chapel of the Cross, Ms. Melchionna has been attending many

meetings, both to educate herself about this parish and to show support to the various committees

and ministries of the parish. She will likely be cutting back on meeting attendance to focus on

other aspects of her job as Rector. As the parish grows, the role of the Rector needs to adapt.

Ms. Melchionna concluded the discussion by observing that we're headed in the right

direction, but the Vestry needs to communicate to the parish the expectations of who is doing

what.

Vestry Person of the Day

Last Sunday launched the initiative of Vestry Person of the Day at Sunday services. This

practice will help parishioners see the Vestry as leaders of the parish. On a rotating schedule,

Vestry members will be responsible for being available after all four Sunday services to greet

parishioners and listen to their comments and concerns. Mrs. McGuffin was the first Vestry

member to assume this responsibility, and she reported that it was well-received by parishioners.

She suggested that parishioners with issues to discuss be invited to contact that Vestry member to

arrange a time for further discussion.

Finance Committee

Ms. Melchionna began the report by informing the Vestry that the North Carolina

Episcopal Church Foundation has approved the parish's application for a Green Grant of $5000

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towards the cost of a new boiler for the church. She commended Alan Rimer for his role in

submitting the grant.

Mrs. Perun asked for Vestry approval of two motions of the Finance Committee.

The first motion asks that the Vestry approve the Finance Committee recommendation

for paying for the new boiler. $5000 of the $44,000 cost will be offset by the grant from the

North Caroline Episcopal Church Foundation, with the balance to come from the Cobb

Endowment Fund and the Capital Fund.

It was moved by the Finance Committee, and passed unanimously, that the

Vestry approve the expenditure of accrued income from the Cobb Endowment Fund and

accrued income from the Capital Fund, in that order, to fund the purchase and installation

of a new boiler in the church.

As part of the ongoing effort of the Finance Committee to streamline and simplify the

multiple funds of the parish, the Finance Committee recommends that the approximately $4000

remaining in the Organ Fees fund be moved to the James Fund.

It was moved by the Finance Committee, and passed unanimously, that the

Vestry approve the recommendation of the Finance Committee to move the funds

remaining in the Organ Fees fund to the James Fund.

Referring to item 3 of the report, it was reported that some parishioners have been

approached to pledge support for an Organ Scholar from Duke, with one pledge already having

been secured.

Family Table Discussion

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The Vestry again engaged in informal discussion of parishioners who have not been seen

at church services recently, with follow-up assigned as needed.

Associate to the Rector

Ms. Melchionna reported that she is looking for an individual who can wear different

hats, depending on the needs of the parish at any given time. The position will be advertised for

six weeks, following which the Personnel Committee will review the applications. Ms.

Melchiona anticipates that the new Associate to the Rector could begin work in July or August,

but she emphasized that she will not hold to a specific schedule, but rather wait for the right

person for the job.

Fish Fry

The annual Fish Fry was a big success, with about 100 people in attendance and $3000

raised.

Mr. Taylor offered a prayer at 7:25 p.m., and the meeting was adjourned.

Respectfully submitted,

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Nancy F. Kelly

Clerk of the Vestry

Attachments

- - - Consent Agenda

- - - Rector's Report

- - - Questionnaire on Use of a Priest's Time

- - - Buildings and Grounds Committee Report t

- - - Finance Committee Report

- - - Balance Sheets as of January 31, 2018

- - - Treasurer's Report

- - - Christian Formation Report

- - - Parish Life Report

- - - Chief Administrator's Report

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April 2018 Rector’s Vestry Report: I am thankful for our staff team, lay leadership, and the faithful work that is going on in this parish community. We had a tremendous Holy Week and Easter celebrations which were faithfully attended at both the parish and retirement communities. This year we tried many new musical settings at Easter. We have initiated our search for our next Associate Rector. It is live and will be open through May 18. Please be praying for the candidate who will join in ministry with us. An important aspect of the work that has been happening this month has been on the groundwork for a capital campaign steering committee. We will be facing retiring the debt that the parish incurred in building the new parish house. That work, along with the next two annual campaigns will take a significant amount of efforts on our part and I look forward freeing us for mission! When we are in person I would like to discuss with you all a proposed gift acceptance policy and the invitation for us to support Augustine University—and HBCU and the only Episcopal college in North Carolina (May 21st!) I thought might be helpful for to offer a sense of the breadth of items with which I have been engaged during the last month: Parish Life and Fellowship:

o Invite, Welcome, Connect: implementation of suggestions from the adult for a continues

o Pastoral Ministries transition: o Library reorganization continues with a desire to make the space more

welcoming, link with the work of the book groups, feature our children’s materials.

o Contacts welcoming newcomers to parish o Attended parenting class (in collaboration with school system) using restorative

practices o Excited about the ways in which folks are taking initiative to organize family-life

activities. o Attended and participated in the Women’s Retreat at Pine Knoll Shores at Trinity

Center. Liturgical Life:

o What an incredibly rich Holy Week and Easter worship experience. We did have a request that we please turn on the cameras for the feed from the church to the Great Hall. We do not have cameras to facilitate this transmission. I would like us to explore the possibility.

o We have shifted our bulletin format at the 9 and 11:15am services in order to make the worship experience more accessible.

o Our Episcopal visitation will take place on Sunday, April 22nd. To accommodate Bishop Anne’s schedule we will combine our 9 and 11:15 services at 10am. We will receive/confirm/baptize a total of 12.

Pastoral Engagement: o Home communion visits to parishioners o Responding to parishioners after the death of parents o Funerals o Last Rites for parishioners

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o Conversations with newcomers about joining the church o Conversations with those interested in being married at the church/marriage

counseling o Conversations with those interested in baptism at the church o Funeral planning with one parishioners in response to adult forums

Diocesan/Regional Engagement: o Colleague group with rectors of the other large parishes of the diocese, which I

have found quite helpful! o Fresh Start- diocesan program for clergy in transition (all attend for the first two

years of ministry) o Clergy Retreat and Renewal of Ordination Vows

Faith in Action: o Cliff Haac will serve as our Network Representative for Episcopal Relief and

Development o The parish is gearing up for the ABC Sale—a significant portion of whose

proceeds will benefit our capital commitment to the Interfaith Council o Global Missions applied for and received a $5000 from Missional Initiative Grant

that will support the training of teachers at Kwasa in the Augustine Literacy Project training method.

Formation: o Lay Teaching Committee: will conclude its work with Paige Hanks as she finishes

her internship with us in early May. Paige has been the most phenomenal intern I have ever had the pleasure of supervising. Paige has been moved forward as an ordinand in the Diocese of Texas. I know that we will all give thanks for her work among us and will pray for her continued work and ministry.

o Taught and adult formation session on Holy Week. o Boykin Bell, Director of Christian Formation has returned from the first part of

her sabbatical. She will complete it the balance of her sabbatical this summer. Administration:

o We are spending time talking about our staff values [*Say our prayers * Here for the care of parishioners * Be direct *Assume the best *Respect shared deadlines *One Staff Team *Helping us help one another]

o If you do not subscribe to Vital Practices, I encourage you to do so: http://www.ecfvp.org/

o Received Green Grant from the Diocese of NC for $5000 to help offset the cost of the new boiler!

o William Mercer Green Planned Giving Society was very well attended (60+). We ran out of food. Follow up letters to those in attendance have been mailed.

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COTC Finance Meeting Agenda April 10th, 2018, 6:30 – 7:30pm Committee Members Barney Varner, Dick Taylor, Doug Kelly, EMM, Erin Langston, Carrie Fraipont, Sabrina Olsen, Stephanie Perun, Walker Mabe and John Pegram The Rector joyfully commenced the meeting with a prayer at 6:30pm in the Library. 1- Monthly Finance Statements- February for Vestry Report - attached

2- Treasurers’ Report- Carrie / continue discussion around accounting for all operating expenses in the general fund, rather than using the special funds to cover them. It was resolved that the Treasurer will make a recommendation for the Finance Committee to review in the future. The specific example in question is how the Altar Flowers money is collected and documented in our accounting structure. The goal here is transparency and simplification.

3- Boiler Update/ James Fund ( Organist Fund update)

The Boiler deposit of apprx $8,000 was paid to secure the bid for the Boiler replacement. This was paid with capital funds. The Green Grant from the Diocese that COTC was awarded to offset the cost by $5K, when received, will be credited to the capital fund. The Cobb Fund earnings will also be used to cover the new boiler expense as approved by the Vestry in March.

The Organ Fees discussed last month, and requested to be transferred to the James Fund, and approved by the Vestry in March, has not occurred to date. The exact amount to transfer to the James Fund is being researched. More updates to follow.

4- Long Range Planning Committee Mtg / Campaign ~ Annual Fund update – meeting occurred on 4/10 at 5:30 pm in the Library – see notes attached

5- Gift Policy Update- under review By the Senior Warden- Audit-

6- Renewing PreSchool Agreement- Sub Committee of Leigh Ann Dasher, Erin Langston, Anna Lorenz, Dick Taylor and Walker Mabe are meeting to review the expired Preschool / COTC Agreement contract. Meetings are in the works and progress is being made. More to come in the future.

7- Audit- Auditors will come in May. Need to disseminate dates.

8- Finance Policy and Procedures- DRAFT is the works for review later this month in planning for Annual Audit.

Next Mtg May 8th

Meeting was adjourned at 7:30 pm, after a closing prayer by Senior Warden, Dick Taylor. Respectfully submitted Stephanie Perun Finance Chair

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Long Range Planning Committee 4/10 – Library, COTC, 5:30 pm Notes Invited:, John Pegram, Dick Taylor, EMM, David Ross and Carrie Friapont. Not able to attend: Ford Worthy, Eugene Daubert The Committee Reviewed Notes from John Pegram and Ford Worthy on the opportunity to refinance the loan from BB+T prior to July 2020 (current maturation date). The offer from BB+T was not as competitive as the committee would have hoped. Several scenarios were projected to decide if we should surrender our 3.25% interest rate sooner than the current term limit. The decision is to recommend to the Finance Committee to keep status quo for the time being. The Immediate need is to organize the Campaign Leadership team or Campaign Organizing Committee. This needs to be accomplished over the next 4-6 weeks. This committee will serve in part to create a Campaign Steering Committee to oversee the campaign goals, timeline, message and Leadership Solicitation. The opportunity to refinance will be studied again after the Campaign Plan is established. Several recommendations were made by those in attendance of possible committee members and Leadership Donors. This work effort will begin ASAP. Additionally it was discussed the need to view the fund raising efforts holistically for the next three years- Retire the Debt, and two Annual Campaigns. These programs need to be coordinated and executed jointly and not in a silo. Report was shared with the Finance Committee who met immediately following the LRPC on 4/10.

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Notable Fund Balances:

February 28, 2017 February 28, 2018 ChangeGeneral Fund

Beginning of the year balance 20,000 62,993

Revenues year to date 296,772 299,057 0.77%Expenditures year to date (265,312) (280,417) 5.69%

Fund balance at January 31 51,460 81,633

January 1, 2018 February 28, 2018 Change

Development Fund

Development fund balance 489,206 383,096 (106,110)

Loan balance 2,420,000 2,320,000 (100,000)

Total Endowments 1,863,526 1,862,232 (1,294)

CHAPEL OF THE CROSSFEBRUARY 2018

TREASURER’S REPORT

Comments:

Total revenues to date are consistent with the prior year. Current year pledge income is down $20,000 from 2017. This decrease is offset by the $24,973 special funds transfer approved by the Vestry in December. Revenues are consistent with the budget.

Year to date expenditures are up $15,000 from the prior year, primarily as a result of timing differences. Total expenditures are in line with the budget. Individual line items in excess of the ratable budget are generally due to the payment of more than two months of activity in January/February (health insurance, computer maintenance, workers comp, buildings and grounds).

Respectfully, Carrie Fraipont, Treasurer

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2017 2018

ASSETSGeneral Checking Account (2,720) 273,120 Development Reserve Account 683,132 378,302 Brokeage Cash Accounts 171,014 280,328 GNMA Bonds 2,782 2,310 Investments: Diocese 1,058,890 1,355,629 Investments: Vanguard 464,522 525,040 Deposits/Securities in Transit - - Prepaid expense 520 112 Accounts receivable 56,100 8,486 Discounted Beneficial Interest in Assets Held by Others 209,497 212,586 Other assets - -

Total Assets 2,643,737 3,035,913

LIABILITIESPrepaid pledges 87,473 172,400 Employee withholding 2,542 4,539 Accounts payable 32,012 23,756 Accrued Annual Leave 32,693 52,338 Due to Special Funds 2,327,402 2,584,620 Other liabilities 10,710 12,811

Total Liabilities 2,492,832 2,850,464

FUND BALANCEBeginning balance 20,000 62,993 Current year Change 31,460 18,640

Total Fund Balance 51,460 81,632

RESTRICTED ACCOUNTSRestricted Accounts 99,445 103,816

Total Restricted Accounts 99,445 103,816

Total Liabilities, Fund Balance, and Restricted Accounts 2,643,737 3,035,913

ASSETSIncome 852,138 822,206 Principal 1,475,264 1,762,414

Total Assets 2,327,402 2,584,620

LIABILITIESDevelopment Fund Loan Principal 2,520,000 2,320,000 Development Fund Retainage - -

Total Liabilities 2,520,000 2,320,000

FUND BALANCEBeginning balance (193,683) 274,445 Current year Change 1,085 (9,825)

Total Fund Balance (192,598) 264,620

Total Liabilities and Fund Balance 2,327,402 2,584,620

Notes to Balance Sheets:1)

2)

3)

4) Special Funds assets are divided into income and principal. In general, income is available for expenditure in accordance with the purposes of the particular fund. Principal is not, in general, available for expenditure.

General Fund

Special Funds

Chapel of the CrossBALANCE SHEETS

February 28, 2018

All real assets (checking accounts, investments, etc.) are held in the General Fund. Thus the total assets of the General Fund represent the total assets on the books of the Chapel of the Cross.The General Fund owes a substantial part of these assets to the Special Funds. The total of the assets of the Special Funds always equals the total of the General Fund "due to" liability lines, summarized here as "Due to Special Funds".This structure means that there is no direct mapping of Special Funds assets to particular real investments or accounts.

Financial Reports Page 1 of 7 Balance Sheets14

January 2017

February 2017

2017 To-date

2017 Budget

% of 2017 Budget

January 2018

February 2018

2018 To-date

2018 Budget

% of 2018 Budget

REVENUES 1 1 Prior Year Pledges 1,005 2,511 3,516 5,000 70.31% 1,130 950 2,080 5,000 41.60%Current Year Pledges 121,509 140,887 262,396 1,452,180 18.07% 121,458 120,726 242,184 1,500,000 16.15%Plate Offering 2,406 2,287 4,693 23,000 20.40% 2,458 2,037 4,495 35,000 12.84%Unpledged Contributions 3,385 9,404 12,789 75,000 17.05% 2,762 8,560 11,322 80,000 14.15%Camp Min Diocesan Grant 5,367 5,471 10,838 61,365 17.66% - 11,311 11,311 65,526 17.26%B&G Endowment Income - - - 3,035 0.00% - - - 3,334 0.00%E&UO Endowment Income - - - 5,070 0.00% - - - 5,569 0.00%CO Endowment Income - - - 21,904 0.00% - - - 24,058 0.00%W&PS Endowment Income - - - 4,650 0.00% - - - 8,065 0.00%External Endowments - - - 7,111 0.00% 1,028 - 1,028 7,928 12.97%Investment Income 273 (45) 228 900 25.38% (27) (550) (578) 900 -64.18%Interfund Transfers - - - - 0.00% 24,973 - 24,973 23,000 108.58%ABC Sale Grants - - - - 0.00% - - - 25,000 0.00%Building Use Income 380 680 1,060 6,000 17.67% 255 805 1,060 10,000 10.60%Parking Revenue - 150 150 3,600 4.17% - 150 150 3,600 4.17%Parish Fundraisers (53) 1,156 1,103 10,000 11.03% 555 476 1,031 10,000 10.31%

Total Revenue 134,271 162,501 296,772 1,678,815 17.68% 154,591 144,466 299,057 1,806,980 16.55%

EXPENDITURESOutreach and Social Justice

Diocesan Share 14,935 14,935 29,869 179,215 16.67% - 30,393 30,393 182,357 16.67%Episcopal Institutions - - - - 0.00% - - - - 0.00%Episcopal Seminaries - - - 1,000 0.00% - - - - 0.00%Yates Scholarship - - - 200 0.00% - - - 200 0.00%Faith in Action - - - 50,000 0.00% 1,850 - 1,850 65,570 2.82%Johnson Service Corps - - - 11,400 0.00% - - - 5,000 0.00%Campus Ministry 331 26 356 10,675 3.34% 516 625 1,141 10,000 11.41%Diocesan Conv. Delegates - 500 500 3,000 16.67% - - - 2,500 0.00%

Subtotal, 15,266 15,460 30,726 255,490 12.03% 2,366 31,018 33,384 265,627 12.57%Outreach and Social Justice

Christian FormationChristian Formation 798 753 1,551 14,000 11.08% (1,180) (229) (1,409) 14,500 -9.72%Nursery & Child Care Expenses 90 - 90 500 18.00% - - - 200 0.00%Books & Pamphlets 184 - 184 700 26.25% 184 - 184 400 45.94%Youth Ministry 179 (1,902) (1,723) 6,336 -27.19% 1,368 (663) 705 7,500 9.40%Speakers, Preachers, & Scholars - - - 3,000 0.00% - - - 3,000 0.00%Spiritual Life Committee - - - 652 0.00% 200 - 200 700 28.62%

Subtotal, 1,251 (1,149) 102 25,188 0.40% 572 (893) (321) 26,300 -1.22%Christian Formation

Worship and MusiocSupply Clergy - - - 3,000 0.00% (225) 225 - 6,000 0.00%Liturgical Expenses 147 385 532 9,700 5.49% 176 278 454 10,000 4.54%Music Program - - - 12,000 0.00% 15 454 469 13,539 3.46%Supply Organists 737 - 737 3,000 24.56% - - - 3,000 0.00%Musical Instruments - - - 2,000 0.00% - - - 2,000 0.00%

Subtotal, 884 385 1,269 29,700 4.27% (34) 957 923 34,539 2.67%Worship and Music

Pastoral Care Hosp. FellowshipHospitality 2,510 629 3,139 15,000 20.93% 940 996 1,936 13,000 14.89%Crossties - - - 792 0.00% - - - 300 0.00%Pastoral Ministries Support - 18 18 660 2.74% - - - 200 0.00%Other Parish Program Exp - - - 1,716 0.00% - - - 1,000 0.00%

Subtotal, 2,510 647 3,157 18,168 17.38% 940 996 1,936 14,500 13.35%Pastoral Care Hosp. Fellowship

AdministrationCommunications 880 35 915 4,000 22.88% 1,039 704 1,743 4,000 43.58%Postage - - - 4,000 0.00% - - - 3,500 0.00%Postage Equipment 438 - 438 1,800 24.33% 470 - 470 1,800 26.11%Telephone 910 889 1,799 11,000 16.36% 946 931 1,877 11,000 17.06%Telephone Equipment - 99 99 1,000 9.90% - 99 99 1,000 9.90%Office Supplies 61 230 291 2,000 14.54% 67 647 714 2,500 28.54%Printing 403 847 1,250 4,000 31.25% (300) 474 174 2,000 8.70%Printing Equipment 1,657 1,109 2,766 13,000 21.28% 1,014 230 1,244 13,000 9.57%Computer Equipment 188 - 188 2,500 7.53% - - - 2,500 0.00%Computer Maintenance 1,302 604 1,905 11,000 17.32% 3,512 1,562 5,075 12,000 42.29%

Chapel of the CrossGENERAL FUND REVENUES AND EXPENDITURES

February 28, 2018

Financial Reports Page 2 of 7 General Fund Revs and Exps15

January 2017

February 2017

2017 To-date

2017 Budget

% of 2017 Budget

January 2018

February 2018

2018 To-date

2018 Budget

% of 2018 Budget

Chapel of the CrossGENERAL FUND REVENUES AND EXPENDITURES

February 28, 2018

Parking 500 500 1,000 6,000 16.67% 500 - 500 6,000 8.33%Events & Conferences - - - 250 0.00% - - - 250 0.00%Staff & Volunteer Training 199 56 255 3,000 8.51% 238 1,086 1,325 4,000 33.11%Sabbatical Fund - - - 1,500 0.00% - - - 1,500 0.00%Professional Development Allow. - - - 3,000 0.00% 75 - 75 3,000 2.50%Life Insurance - Lay Staff - - - 1,188 0.00% - - - 1,188 0.00%Short Term Disability (Lay Staff) - - - 948 0.00% - - - 948 0.00%Long Term Disability - - - 1,021 0.00% - - - 1,021 0.00%Cell Phone Reimbursement 100 100 200 1,200 16.67% 100 100 200 1,200 16.67%

Subtotal, 6,639 4,468 11,107 72,407 15.34% 7,661 5,833 13,494 72,407 18.64%Administration

Finance Stewardship Bus. CostsStewardship & Development - 2,850 2,850 2,376 119.96% 888 - 888 15,000 5.92%ACS OnDemand/Access ACS 826 847 1,673 9,300 17.99% 836 864 1,700 9,300 18.28%Accounting Services 4,094 4,094 8,189 49,131 16.67% 4,217 4,217 8,434 49,131 17.17%Audit - - - 12,600 0.00% - - - 12,600 0.00%Accounting Supplies - - - 1,300 0.00% - 69 69 800 8.63%Service Charges 1,494 641 2,135 9,000 23.72% 2,302 993 3,296 9,000 36.62%Merchant Fees 180 172 351 2,500 14.05% 168 148 317 2,500 12.68%Worker's Comp Ins 3,521 - 3,521 6,000 58.68% 3,147 (225) 2,922 5,000 58.45%Retired Housekeeper 695 - 695 8,652 8.03% 697 - 697 8,652 8.05%Search & Moving Expenses - - - 12,000 0.00% - 2,721 2,721 20,000 13.60%Property & Liability Ins - 6,784 6,784 28,000 24.23% 2,307 - 2,307 28,280 8.16%Debt Service Support - - - 20,000 0.00% - - - 25,000 0.00%Xfer to Capital Fund - - - 10,000 0.00% - - - - 0.00%

Subtotal, 10,810 15,388 26,197 170,859 15.33% 14,562 8,788 23,350 185,263 12.60%Finance Stewardship Bus. Costs

Staff Salaries & Wages 56,030 55,332 111,361 661,129 16.84% 57,382 57,324 114,706 704,264 16.29%Temporary Help - - - - 0.00% - - - - 0.00%Pensions - 16,071 16,071 84,245 19.08% 4,300 11,479 15,779 89,109 17.71%Health Insurance 9,236 18,809 28,045 117,774 23.81% 21,897 10,839 32,736 146,733 22.31%Life Insurance 104 257 361 1,096 32.90% 386 193 579 1,099 52.66%Disability Insurance 86 147 233 1,032 22.53% 1,029 124 1,153 1,032 111.76%SECA Supplement - 812 812 9,792 8.29% 824 2,179 3,003 21,999 13.65%FICA - Lay 2,365 2,400 4,765 33,560 14.20% 2,490 3,069 5,559 33,733 16.48%Rector's Expenses 20 383 402 3,620 11.11% 123 136 259 3,620 7.17%Assoc (Pastor) Expenses 143 162 305 3,105 9.81% - 75 75 3,105 2.42%Assoc (Campus) Expenses 44 - 44 3,105 1.42% - - - 3,105 0.00%Dr. of Christian Formation Expenses - 20 20 1,045 1.87% 605 8 614 1,045 58.71%Deacon's Expenses - - - 500 0.00% - - - 500 0.00%Organist's Expenses - 587 587 1,500 39.14% 26 143 169 1,500 11.24%Parish Admin Expenses 604 548 1,152 1,500 76.82% 518 85 603 1,500 40.18%Other Staff Expenses - - - - 0.00% - - - - 0.00%

Subtotal, 68,631 95,527 164,158 923,003 17.79% 89,581 85,654 175,235 1,012,344 17.31%Staff

Physical Plant Utilities 3,556 4,955 8,512 70,000 12.16% 3,429 7,093 10,522 75,000 14.03%Buildings & Grounds 8,963 3,247 12,210 45,000 27.13% 9,301 772 10,073 50,000 20.15%HVAC - 4,241 4,241 24,000 17.67% 190 4,297 4,487 26,000 17.26%Furniture & Equipment 242 - 242 3,000 8.07% - - - 3,000 0.00%Cleaning Vendor 59 3,318 3,377 40,000 8.44% 3,200 3,489 6,689 40,000 16.72%Janitorial Supplies - 14 14 2,000 0.71% - 645 645 2,000 32.25%

Subtotal, 12,821 15,775 28,596 184,000 15.54% 16,120 16,296 32,415 196,000 16.54%Physical Plant

Total Expenditure 118,811 146,501 265,312 1,678,815 15.80% 131,768 148,649 280,417 1,806,980 15.52%

NET CURRENT PERIOD 15,460 15,999 31,460 - 22,823 (4,183) 18,640 -

Financial Reports Page 3 of 7 General Fund Revs and Exps16

Beg of Year Balance

Year to Date Credits

Year to Date Debits

Current Balance

Restricted AccountsLilly Endowment Grant 99,218 - - 99,218 Rector's Sabbatical 1,500 - - 1,500 Rector's Professional Development 2,828 - - 2,828 Circles of Support 330 - 60 270 Christmas Flowers - - - - Christmas Music - - - -

Total Restricted Accounts 103,876 - 60 103,816

Chapel of the CrossRESTRICTED ACCOUNTS SUMMARY

February 28, 2018

Financial Reports Page 4 of 7 Restricted Accounts Summary17

Beg of Year Principal

Beg of Year Income

Year to Date Change in Principal

Year to Date Revenue &

Liability Change

Year to Date Expenses

Current Principal

Cuurent Income

EndowmentsBuilding & Grounds Endowments

Building & Grounds Endowment 56,636 - - - - 56,636 - C/C Cobb Chapel 40,977 3,394 - - - 40,977 3,394 Cobb 183,875 20,211 - - - 183,875 20,211 Elkins Rose Garden 53,433 - - - - 53,433 - Gibson-Hill Garden 41,706 1,760 - - - 41,706 1,760 Stoudemire Chapel 67,218 - - - - 67,218 -

Buildings & Grounds Endowments Subtotal 443,845 25,365 - - - 443,845 25,365

Evangelism & University Outreach EndowmentsEvangelism & University Outreach Endowment 79,945 - - - - 79,945 - Campus Ministry 78,979 163 - - - 78,979 163 French Scholarship 37,574 13,855 - - - 37,574 13,855 House Scholarship 20,971 8,807 - - (1,500) 20,971 7,307

Evangelism & University Outreach Endowments Subtotal 217,469 22,824 - - (1,500) 217,469 21,324

Community Outreach EndowmentsCommunity Outreach Endowment 23,791 - - - - 23,791 - Mills-Tolbert 206,104 - - - - 206,104 - Outreach 456,696 - - - - 456,696 - Social Ministry 5,569 7,161 - - - 5,569 7,161

Community Outreach Endowments Subtotal 692,160 7,161 - - - 692,160 7,161

Worship & Program Support EndowmentsWorship & Program Support Endowment 186,463 - - - - 186,463 - Altar Guild 3,755 11,863 - - (50) 3,755 11,813 Altar Guild Flower 7,359 3,996 - 900 (734) 7,359 4,162 Duerden 2,724 4,967 - - - 2,724 4,967 James Music 63,853 12,604 - 90 - 63,853 12,694 Lantz Scholarship 95,020 12,332 - - - 95,020 12,332 Shaffer 49,765 - - - - 49,765 -

Worship & Program Support Endowments Subtotal 408,940 45,762 - 990 (784) 408,940 45,968

Total Endowments 1,762,414 101,112 - 990 (2,284) 1,762,414 99,818

Program FundsProgram - 220,128 - - - - 220,128 Capital - 27,389 - 30 (8,888) - 18,531 ABC Sale - 1,275 - 125 - - 1,400 Chapel Organ - (31,154) - - - - (31,154) Clergy Enrichment - 14,103 - - - - 14,103 Designated Bequests/Gifts - 3,435 - - - - 3,435 Designated Offerings - 6,670 - 10,618 (150) - 17,138 Development - 489,206 - (99,635) (6,475) - 383,096 Global Missions - 1,139 - - (49) - 1,090 Memorials - 19,854 - 4,805 - - 24,659 Student Mission - 27,489 - 26 - - 27,515 Youth Mission - 2,200 - 2,062 (1,093) - 3,170

Program Funds Total - 781,734 - (81,969) (16,655) - 683,110

Clergy Discretionary FundsAsso/Campus Discretionary Fund - 12,604 - 1,050 (2,451) - 11,203 Asso/Parish Discretionary Fund - 105 - - - - 105 Bishop in Res Discretionary Fund - 2,004 - - - - 2,004 Deacon's Discretionary Fund - 1,716 - - - - 1,716 Asso/Pastoral Discretionary Fund - 13,656 - 225 (8,843) - 5,039 Rector’s Discretionary Fund - 19,099 - 1,200 (1,088) - 19,212

Clergy Discretionary Funds Total - 49,185 - 2,475 (12,382) - 39,278

Overall Total 1,762,414 932,031 - (78,504) (31,320) 1,762,414 822,206

Chapel of the CrossSPECIAL FUNDS SUMMARY

February 28, 2018

Financial Reports Page 5 of 7 Special Funds Summary18

Current Income

Operating Budget Support

Designated Uses

Pending Designations

Net Available Income

EndowmentsBuilding & Grounds Endowments

Building & Grounds Endowment - - C/C Cobb Chapel 3,394 - 3,394 Cobb 20,211 20,211 - Elkins Rose Garden - - Gibson-Hill Garden 1,760 1,760 Stoudemire Chapel - -

Buildings & Grounds Endowments Subtotal 25,365 - 20,211 - 5,154

Evangelism & University Outreach EndowmentsEvangelism & University Outreach Endowment - - Campus Ministry 163 163 French Scholarship 13,855 13,855 House Scholarship 7,307 7,307

Evangelism & University Outreach Endowments Subtotal 21,324 - - - 21,324

Community Outreach EndowmentsCommunity Outreach Endowment - - Mills-Tolbert - - Outreach - - Social Ministry 7,161 - 5,059 2,102

Community Outreach Endowments Subtotal 7,161 - - 5,059 2,102

Worship & Program Support EndowmentsWorship & Program Support Endowment - - Altar Guild 11,813 1,648 10,165 Altar Guild Flower 4,162 4,162 Duerden 4,967 4,967 James Music 12,694 6,686 6,008 Lantz Scholarship 12,332 12,332 Shaffer - -

Worship & Program Support Endowments Subtotal 45,968 - 8,334 - 37,634

Total Endowments 99,818 - 28,545 5,059 66,214

Program FundsProgram 220,128 - 220,128 Capital 18,531 15,339 3,191 ABC Sale 1,400 1,400 Chapel Organ (31,154) (31,154) Clergy Enrichment 14,103 14,103 Designated Bequests/Gifts 3,435 3,435 0 Designated Offerings 17,138 17,138 - Development 383,096 383,096 Global Missions 1,090 - 1,090 Memorials 24,659 14,784 9,875 - Student Mission 27,515 27,515 Youth Mission 3,170 3,170

Program Funds Total 683,110 - 50,696 9,875 622,540

Clergy Discretionary FundsAsso/Campus Discretionary Fund 11,203 11,203 Asso/Parish Discretionary Fund 105 105 Bishop in Res Discretionary Fund 2,004 2,004 Deacon's Discretionary Fund 1,716 1,716 Asso/Pastoral Discretionary Fund 5,039 5,039 Rector’s Discretionary Fund 19,212 19,212

Clergy Discretionary Funds Total 39,278 - - - 39,278

Overall Total 822,206 - 79,241 14,934 728,031

Chapel of the CrossSPECIAL FUNDS ENCUMBRANCES

February 28, 2018

Financial Reports Page 6 of 7 Special Funds Encumbrances19

FundAmount of

Encumbrance Description of Encumbrance

Altar Guild 1,648 Designated gifts for kneelerssubtotal 1,648

Capital Fund 15,339 Boiler Replacementsubtotal 15,339

C/C Cobb Chapel - subtotal -

Cobb 20,211 Boiler Replacementsubtotal 20,211

Designated Bequests/Gifts 600 Church Doors100 Devany Estate

1,500 Elder ministry, memory of Jean Copeland34 Remainder after gift of Gospel Book and 3 Communion Sets45 Writing workshop

1,056 Chapel Prayer Desk Chair in honor of Deacon Joyner100 Adult Education/Spiritual Formation

subtotal 3,435

Designated Offerings 5 Church in Jerusalem, Good Friday Offering350 Thanksgiving Day Offering - Thompson Child & Family Focus

16,783 VJD Farewell Contributionssubtotal 17,138

Global Missions Fund - subtotal -

James Fund 6,686 Lee Thomas Memorial Gifts - Special Music Projectsubtotal 6,686

Memorials 14,784 Burial Plaque Engravingsubtotal 14,784

Programsubtotal -

Social Ministrysubtotal -

Total 79,241

FundAmount of

Encumbrance Description of Encumbrance

Memorials 7,320 2017 memorials pending family designation2,555 2018 memorials pending family designation

subtotal 9,875

Social Ministry 5,059 Tithes of Undesignated Bequests and Memorialssubtotal 5,059

Total 14,934

Pending Designation

Designated Uses

Chapel of the CrossSCHEDULE OF ENCUMBRANCES

February 28, 2018

Financial Reports Page 7 of 7 Schedule of Encumbrances20

Faith in Action Report April 2018

Committees within the Faith in Action Commission have made progress in advancing their goals as well as joining together to collaborate on broader faith in action initiatives. At recent meetings, clarification was provided to both Global Missions and Outreach Ministry that Faith in Action has replaced Outreach and Social Justice as the name of our commission in keeping with our commitment to live out our faith through service to local, diocesan, national, and global communities. The FIA Commission includes: GMC, OMC, ECM, Johnson Service Corps, Justice United and the Preschool. Within the FIA commission, GMC and OMC have worked together over the past year to engage the parish in faith in action initiatives. The Rise Against Hunger meal packing event held in February was a perfect example of a collaborative effort between GMC and OMC. FIA highlights: Global Missions The South African subcommittee was the recipient of a diocesan GMC grant of $5,000 to

support the airfare, visa application and Augustine Project tuition for two teachers from Kwasa.

For the first time in 16 years, a group from COTC visited Cameron Vivanco in Ecuador. Cameron, whose home church is COTC, was especially pleased with the visit. Mike Miller, missioner at La Esperanza de Jesus in Honduras will be visiting in April. GMC members are working on connecting him with student consultants at UNC Kenan Flagler for assistance in marketing La Esperanza’s coffee.

GMC is updating its webpages along with reviewing its mission statement. Simple bylaws will be drawn up as well.

Outreach Ministry OMC is grateful for the involvement and support of our seminarian intern, Paige Hanks,

who organized a very successful MLK Day of Service in January.

Through this year’s Project 5000 drive, 250 boxes of food were donated to the IFC Food Pantry. 44 of those boxes were donated by Preschool families.

Plans for the 56th ABC Sale on April 28 are well underway. A three-year commitment of $15K per year has been made to the IFC Food First Campaign from ABC Sale funds beginning in 2018. Any additional funds will be allocated to the FIA budget. All proceeds from the ABC Sale continue to support organizations outside the parish.

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COTC has been an active participant in the 2018 Habitat Interfaith Build in the Tinnin Woods neighborhood in Efland.

OMC is updating its webpages along with reviewing its bylaws. Johnson Service Corps There are currently 4 corps members committed for next year and possibly more in the

pipeline. Last year, JSC had houses in Carrboro and Durham, but may have to scale back to one house in the coming year. JSC working on budget/financials and fundraising.

Justice United Justice United held a well-attended assembly on April 10 with 253 leaders in

attendance. Progress was made in the areas of affordable housing and job access and resources for immigrant students in Orange County Schools. JU received funding from COTC OMC in 2018.

Submitted by Allison Worthy, Vestry Liaison to FIA

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Personnel Committee Update April 2018 There are two open positions on the Personnel Committee. We will fill the available positions by April 21. The Rector has created a job description for the Associate Rector position. The position is currently posted on the Office of Transition Ministry website, the CEEP website, and the Episcopal News Service. A copy of the posting is attached and will be posted on the COTC website by April 16. We will receive names through May 18. Respectfully submitted, Leigh Ann Dasher, Chair

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The Chapel of the Cross, Associate Rector

Founded in 1842, the Chapel of the Cross is an Episcopal parish in Chapel Hill,

located downtown and directly beside the campus of the University of North

Carolina. With about 2000 members, the parish is a vibrant community of faith

where worship, university ministry, and outreach are central. The parish has a

history of strong engagement with the Diocese and the wider church.

The priest who joins our staff as an Associate Rector will make a significant

contribution to the clergy team and professional staff at the Chapel of the Cross,

including all aspects of formation, liturgy, pastoral care, and leadership. Our new

associate rector will join us in helping create a place of transformation to form

disciples for Jesus Christ. The position involves participation with our clergy team

in the full range of clerical responsibilities including (but not limited to) preaching,

teaching, liturgy, pastoral care, hospital visitation, marriages, funerals, and general

ministry oversight. This is a job for someone who loves God, loves being a priest,

loves the church, and seeks to be an agent of change and engagement.

Coupled with these foundational expectations is the opportunity to help lead and

shape lay engagement in significant areas of ministry such as Faith in Action,

pastoral care, or cultivation of spiritual practices. We have a rich history of

engagement with the university and local community. How do we continue to

reach out and build relationships in new ways? How do we cultivate our inner life

and spiritual practices to sustain our work in the world? If you have wanted to try

something innovative, creative, or even risky to help people follow Jesus, then this

is your opportunity.

Our ideal candidate is someone who has ordained leadership experience in the

Episcopal Church, strong communication skills, loves people, practices self-care, is

a self-starter, and gets energy from collaboration. This position is full time, and is

designed in job description, compensation, and benefits for someone who wants to

come and invest in our community and serve with us.

The rector will receive names through Friday, May 18th. Please send a cover letter

of interest and a complete OTM profile with “Associate Rector Search” in the

subject line to the chief administrator, Walker Mabe at

wmabe@thechapelofthecross.org.

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Christian Formation Vestry Report April 2018

• Seventy women, including the Rev. Elizabeth Marie Melchionna, will attend the 2018 Women’s Retreat at Pine Knoll Shores April 13 – 15. The theme is “Finding Joy,” based in part on The Book of Joy by Archbishop Desmond Tutu and the Dalai Lama. Two parish small groups – the Wednesday Women and the 5:15 Book Study – have read this book. Members of those groups will have facilitate discussions.

• A new book study is being created for parents by a core group of lay leaders including Lindsay Porter and Emma Griffith (former Parents’ Bible Study members). They will meet monthly; their first read is Braving the Wilderness Brene Brown.

• The Rt. Reverend Peter Lee is offering two weeks of Sunday morning adult formation on “Conflict in the Anglican Communion: a Retrospective and Reassurance.” We are grateful to our Bishop in Residence!

• Our Vacation Church Camp will be June 18-22. Holy Trinity Lutheran Church campers and volunteers will be joining us.

- Boykin Dunlap Bell

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Vestry Report

October, 2017

Mike Peterson, Youth and Family Minister

March and early April included a very active stretch for the COTC Youth Program. In addition to our regular Sunday morning formation and Sunday afternoon EYC meetings, other notable events included:

• A weekend-long service trip to Raleigh for the youth and leaders of the Youth Inquirers class as they continue to be formed, guided, and educated in moving towards Confirmation

• An incredibly fun and formative overnight retreat for 17 middle school EYCers and four adult leaders at Camp Chestnut Ridge in Efland.

• An instructional Eucharist with Mother Elizabeth Marie for all 6th-12th grade youth. • Gathering to make enough lasagna to fill the entire Good Samaritan’s freezer.

Looking ahead, we will continue our active pace, as the coming month will include:

• Preparations for the Youth Sunday service to be held on May 6th. • Heavy youth involvement and assistance with set-up and clean-up for the ABC Sale. • An ice-skating outing in Hillsborough. • A combined EYC session with Bynum Hoekstra of Conservation International, at which we will

explore what it means to be good stewards of God’s creation. • Confirmation Sunday for our Youth Inquirers

Other updates regarding the Youth Program include:

• Our Senior High Mission Trip to Philadelphia (to be held June 24-29) has 18 youth signed up and may well fill up entirely in the next few weeks.

• Our Middle School Mission Trip to Asheville (August 10-12) has far fewer registrants. It also (unbeknownst at the time that it was scheduled) fall just a week before Mike Peterson and his wife are expecting the birth of their first child. This trip will either move forward with a solid core of volunteer adult chaperons or will be canceled if registration numbers do not increase in the coming weeks.

• We have multiple young people planning to attend Youth Week at Kanuga in June, as weeklong set of conferences for 6th-12th grade youth from all across the Episcopal/Anglican Church held at Kanuga Conference Center in Hendersonville, NC.

• Sunday evening EYC continues to draw healthy numbers with vibrant discussion and engaging activities.

Faithfully Submitted,

Mike Peterson

Youth and Family Minister

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Chief Administrator’s Report—April 2018 Administration

• Supporting Associate to the Rector search. Providing administrative and technicalassistance to the Rector and acting as a clearing house for applications.

• Working with Orange County Board of Elections for COTC to serve as early voting polling placeas well as election day polling place on May 8. Coordinated with ABC Sale committee so thatearly voting could take place drying sale week. COTC will not be open for voting on sale day,April 28.

• Writing draft of COTC financial policies and procedures. Collating policies, resolutions,current practices and more and updating old material with the goal of presenting to auditors inlate May.

• Administering building use policies and rental rates. Working with various groups who rentspace for meetings, trainings, receptions, and other functions. Preparing contracts andagreements and making users aware of our policies.

• Continuing to implement policies around funerals, weddings, and altar flower donations.Policies are disseminated to those planning funerals and weddings, including fees associatedwith those events. Invoices go out one week following funerals; weddings are prepaid. Processof advertising open Sundays for altar flowers and invoicing donors works well.

• Interviewing for new student residents. Secured new resident for summer 2018 and one foracademic year 2018-19. Continuing search for second student for the academic year.

• Implementing new policy for notifying families of memorials and acknowledging memorial andthanksgiving gifts.

• Updated grave marker in memorial garden.• Planning for replacement of our server sometime in 2018. Improving security through addition

of VPN for remote server access. Lowering costs by elimination of terminal server, which is nolonger being used.

• Regular meetings with finance committee, personnel committee, oversight committee,buildings and grounds, staff.

Communications and Development

• Following up on William Mercer Green legacy society reception and organ recital;prepared customized letters to attendees and/or Society members and planned givingdonor families. Sent general email to congregation regarding the legacy society and wayto give; also posted that info on the back of quarterly contributor statements.

• Working with staff and ABC Sale committee to plan for, publicize, and implement sale on April 28. Working closely with committee on logistics, publicity, credit card terminals for each section of the sale, storage of sale items, and other issues as they arise.

• Developing monthly communications plan for parish to include regular and special emails, bulletin announcements, Facebook, Instagram, lobby screens, and direct mail communications. Keeping communications aligned with mission, liturgical year, vestry priorities, and budgeting priorities.

• Overseeing compilation and publication of Friday morning email, Monday “This Week” email, and other parish-wide emails. Overseeing publication of bulletin announcements.

• Working with staff members to redesign, update and improve website, parish emails, welcome brochure and other materials to reflect changes in staff and various policies.

• Compiling building update emails into an inexpensive booklet as a gift for all donors to the capital campaign, at any level. Preparing plaque listing all donors who gave $25,000 and above to Light on the Hill campaign.

• New parish directory will arrive this month. We plan to link the rollout of the new directory to enrollment in COTC Connect and training in use of the online directory and ChurchLife app.

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Chapel of the Cross, Chapel Hill, North Carolina Gift Acceptance Policies

Chapel of the Cross of Chapel Hill, NC (hereinafter or "Church''), recognized by the IRS as an exempt organization, encourages the solicitation and acceptance of gifts to the Church for purposes that will help the Church to further fulfill its mission. The following policies outline the process by which prospective gifts to the Church or for the benefit of any of its programs and special ministries shall be accepted.

The mission of the Church is

• Called by tradition and mission to minister in the heart of the University and local community • Committed to the sacramental worship of God, engaging the richness and beauty of Anglican

liturgy and music • Growing as disciples of Jesus through preaching, teaching, service, and fellowship • Bringing Gospel witness to the world.

The Church envisions that congregations will develop the resources and leadership to support individual and collective ministry, and the Diocesan leaders will provide support to these ministries.

I. Purpose of Policies

The Rector of the Church, the Church staff and members of the Vestry may solicit current and deferred gifts in effort to secure the future growth and mission of the Church. These policies govern the process for the review of prospective gifts prior to acceptance by the Church; the type of the asset and the form of the proposed gift will affect the review process undertaken by the Church. These policies are also intended to guide prospective donors and their advisors when considering a gift to the Church. The provisions of these policies shall apply to all gifts to the Church for any of its programs or services.

II. The Gift Acceptance Committee

a. The Gift Acceptance Committee shall have as its members:

• The Rector of the Church • The Senior Warden of the Church • The Junior Warden of the Church • The Finance Committee Chair • The Treasurer of the Church • And such other persons as may be appointed by the Rector

b. The Gifts Acceptance Committee is charged with the responsibility of reviewing all restricted and

unrestricted gifts made to the Church excepting unrestricted gifts made with liquid assets hereby defined as cash, common or preferred stock and bonds. The purpose of the review by the Gift Acceptance Committee is to act in the best interest of the Church and make recommendations on

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the acceptability of the gifts.

III. Use of Legal Counsel and Avoiding Conflicts of Interest a. There is an ethical responsibility of the Church to the donors to act as true stewards of their wealth.

Therefore the Church shall encourage donors to seek independent professional counsel to represent the donor's interests and to explore the alternatives, costs, tax benefits and obligations of their gifts. The Church shall not provide technical advice to the donor or an analysis of the resulting tax and estate planning consequences.

b. The Gift Acceptance Committee shall seek the advice of legal counsel in matters relating to the

acceptance of gifts when appropriate. Review by counsel is recommended for:

o Gifts of closely-held stock that is subject to restriction or a buy-sell agreement o Gifts involving contracts requiring the Church to assume an obligation o Transactions with potential conflict of interest that may invoke IRS sanctions o Other instances in which use of counsel is deemed appropriate by the Gift

Acceptance Committee

III. Unrestricted and Restricted Gifts

a. The Church will accept all unrestricted gifts, and gifts for specific programs and purposes, provided that such gifts are consistent with its stated mission, purposes, and priorities.

b. The Gift Acceptance Committee will review all restricted gifts and make recommendations to accept or decline. Gifts that are restrictive are those that are too difficult or costly to administer or gifts that are for purposes outside the scope of the mission of the Church.

IV. Types of Gifts

a. The Church will accept outright gifts of liquid assets.

b. Gifts of property other than liquid assets in a form other than outright are subject to

the approval of the Gift Acceptance Committee.

c. Acceptance criteria for gifts other than assets deemed to be immediately accessible arc to be examined by the Gift Acceptance Committee and evaluated in the best interest for the Church and its missions. Items to be considered include:

(1) Tangible Personal Property. ·Does the property fulfill the mission of the Church? ·Is the property marketable? ·Are there any undue restrictions on the use, display, or sale of the property? ·Are there any carrying costs for the property?

(2) Closely Held Securities.

·Are there any restrictions on the security that would prevent the Church from converting the security to a form immediately accessible for mission support?

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· Is the security marketable? ·Will the security generate an undesirable tax consequence for the Church?

(3) Real Estate.

·Is the property useful for the purposes of the Church? ·Is the property marketable? ·Are there any restrictions, reservations, easements, or other limitations

associated with the property? ·Are there carrying costs, which may include insurance, property taxes,

mortgages, or notes, associated with the property? ·Does the environmental audit reflect that the property has liability issues?

(4) Remainder Interests in Property.

(5) Gas, Oil and Mineral Interests.

·Do the surface rights have a value of $20,000 or greater? ·Does the oil, gas, or mineral interest generate at least $3,000 per year in royalties or other income (as determined by the average of the three years prior to the gift)? ·Are there any extended liabilities or other considerations that make receipt of

the gift inappropriate? ·Does a working interest have a plan to minimize potential liability and tax consequences?

(6) Bargain Sales.

·Does an independent appraisal substantiate the value of the property? If the Church is asked to assume debt with the property, is the debt ratio less than

50% of the appraised market value? ·Can the Church use the property? If the property is to be sold, is it reasonable to expect a sale within twelve months

of the property being placed on the market? ·What are the expected costs to safeguard, insure, and maintain the property during the holding period?

d. The acceptance of structured planned gifts is encouraged and can be promoted through

planned giving programs. The Church will not accept appointment as a Trustee but will accept designation as a beneficiary on the following after review by the Gift Acceptance Committee:

(1) Bequests (2) Gifts of life insurance or personal annuity (3) Charitable remainder trust

(4) Charitable gift annuities

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5) Charitable lead trusts

(6) Retirement Plan Beneficiary Designations

VI. Miscellaneous Provisions a. Securing appraisals and legal fees for gifts to the Church. It will be the responsibility of the

donor to secure an appraisal (where required), provide an environmental review (as appropriate) and retain independent legal counsel for all gifts made to the Church.

b. Proper acknowledgment and IRS procedures will be followed. (1) Valuation of gifts. The Church will record a gift on the date the gift is completed at

the fair market value for federal gift tax purposes. The Church will provide and sign the necessary IRS Forms.

(2) Responsibility for IRS Filings upon sale of gift items. The Church will file the appropriate IRS forms upon the sale or disposition of any asset sold within two years of receipt by the Church when the value of the gift is more than $5,000.

(3) Adherence to U.S. Treasury Regulations. The Church will acknowledge all gifts made to the Church for charitable purposes in accordance with the regulations issued by the U.S. Treasury Department.

(4) Review of pertinent IRS Publications will be conducted annually by the Gift Acceptance Committee.

VII. Changes to Gift Acceptance Policies Changes to, or deviations from, the Gift Acceptance Policies may be made with the approval of the Gift Acceptance Committee. All such changes shall be in writing.

Approved on the day of _. 2018.

Chapel of the Cross of Chapel Hill, NC GIFT ACCEPTANCE POLICIES Documents for the Gifts Acceptance Committee

Environmental Review forms IRS Forms 8282 and 8283 and Instructions IRS Publication - Determining the Value of Donated Property IRS Publication - Charitable Contributions

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