2018 Reduction in Fees
It’s all about giving back! Many people in today’s society recognize that we have been given much and can do much to benefit others. As the Virginia United Methodist Foundation has grown in assets over recent years, the Foundation Board of Directors came to the conclusion that we need to look at how we can serve churches, mission emphases, and client/investors better and fulfill our mission to ‘steward potential to build His kingdom.’
Mother Teresa reflect on her motivations for ministry in India:
“At the end of life we will not be judged by how many diplomas we have received, how much money we have made, how many great things we have done. We will be judged by ‘I was hungry and you gave me to eat, I was naked and you clothed me, I was homeless and you took me in.’ Hungry not only for bread — but hungry for love. Naked not only for clothing — but naked for human dignity and respect. Homeless not only for want of a room of bricks — but homeless because of rejection.”
Therefore, the Foundation Board determined to look for ways that it could return its profits to benefit the churches and client/investors. Helping churches fulfill their mission and serving client/investors in a way that enables them to do more to fulfill the purpose for their investment has become the Foundation’s way of looking after the ministries that can be accomplished. The Foundation is devoted to serving the Conference!
One way to fulfill this goal was to create a Gifts and Grants Initiative with supporting strategic opportunities for ministry development around the Conference. (See 2018 Grants article.) Another way to fulfill this goal came in the Board’s decision to approve a fee reduction for investments managed by the Foundation. The fees are how the Foundation has the funds needed to operate and serve churches and ministries throughout the Conference – without any support from Conference apportionments. This decision led to the creation of a new tiered fee structure, based on the aggregate portfolio for each church or client/investor, as follows:
- from 85 bps to 75bps – for accounts of up to $200,000 in value
- from 80 bps to 72bps – for accounts between $200,000 to $500,000 in value
- from 75 bps to 69bps – for accounts between $500,000 to $1 million in value
- from 70 bps to 66bps – for accounts between $1 million to $2 million in value
- from 70 bps to 64bps – for accounts between $2 million to $3.5 million
- from 70 bps to 62bps – for accounts over $3.5 million
Overall, these changes will produce approximately a 10% aggregate reduction. This fee reduction began to show in Foundation statements, effective January 1, 2018. The effect is more growth and benefit to each investor/client to be able to serve its purpose for investment. It’s the Foundation’s way of giving back!
