Memorial Reserve Motion Mailbag

 by: Dave Kaynor

At the Members’ Meeting in July, the Finance Team (FT) presented a proposed change to the Memorial Reserve Account. With the support of the Missions Team, the Elders plan to have us consider it in the November meeting. The purpose of the FT’s presentation was to make everyone aware so questions and concerns can be addressed in advance which is also the purpose of this Q&A. The motion reads, “The Finance Team recommends and the Elder Board supports reallocating $380,000 from the Memorial Reserves Fund to the Missions Reserve ($224,000) and General Reserves ($156,000).”

Q: What’s in the Memorial Reserve Account?

What is its purpose?

A: The Memorial Reserve Account holds three funds. First is the Timothy Fund. The purpose of the Timothy Fund ($96,000) is to financially support men and women with schooling costs who are going into or continuing in full time ministry. The second and third funds are very similar. Those funds contain donations made in the past in memory of family members. The original purpose of those funds was to save the principal while making the interest available for spending. This motion is a proposal for a change in philosophy of how the money was originally intended. We would no longer be restricting spending to the interest only.

Q: Why is this change being proposed?

A: The FT has been considering how much money is too much money. When Ken Kopchick presented the proposal at the meeting, he asked if anyone had wondered why we ask for donations to projects when we have a considerable amount in the bank.

Bob said in a sermon in June, “We want to be wise in having some savings, not too much because we need to always be dependent on God’s people.” All that to say, the FT took the idea to the Elders and they agreed that we should ask the membership for permission to reallocate the funds in the Memorial Reserve Account, making those funds available for missions and building projects.

Q: The 2nd Quarter Report showed $307,000 in the Missions portion of the Memorial Reserve but the motion calls for $224,000. Why the difference?

A: When the FT went back and looked at the records of the individual gifts to the Memorial Reserve account, they found that about $80,000 of the Missions portion was originally building fund money. Reallocating that back to General yields the proposed amounts.

Q: I made up all the previous questions, but this one came from a real member! “If the motion is approved, what will happen to the money?”

A: If approved, $224,000 would be moved to the Missions Reserve Fund. The Missions Team seeks to spend up to $15,000 per year so this addition would help the fund continue for a number of years. $156,000 would be moved to the General Reserves which would then be available for projects around the building. As our building ages (21 years old this year), more and more parts of it need fixing or repairing beyond what is available in the Savings Reserve Fund. Speaking of the Savings Reserve Fund, the Timothy Fund would be moved there and the Memorial Fund would be closed because the account would be empty.

Q: “Are there limits on what can be spent without the permission of the membership?”

A: Yes, any non-budgeted purchase greater than $3,000 in the General Reserves or Missions Reserves would come to the membership for approval.

Q: Have the families that gave to the Memorial Fund originally been notified of the proposed change?

A: Yes! Gifts have been given by 12 different families. Each of those who have members still at Cornerstone were mailed a letter last week explaining all of this.

Q: I have more questions, who should I ask?

A: Ask me or a member of the Elder Board or Finance Team and they would be happy to help.