Endowment

Congregation B’nai Israel maintains two Endowment Funds that produce investment income to support the congregation. Funds are managed by the Investment & Endowment Committee, supported by a professional financial advisor, in accordance with the funds’ governing documents and investment policy statements. Investment income available for distribution is approved by the Investment & Endowment Committee, and any allocations are subject to approval by the B’nai Israel Board of Trustees. 

The Endowment Funds are invested with the intent to achieve moderate growth in value and to provide meaningful financial support to the congregation in perpetuity. Donations to the Endowment Funds help ensure the long-term financial security of our synagogue, from generation to generation. For more information about Endowment Fund contributions or the funds’ governing documents and investment policies, contact Temple Treausurer Jerry Saunders. 

Endowment Fund Part A

 Endowment Fund Part A includes two separate funds: The general Endowment Fund Part A, and the Endowment Fund Part A Israel Subaccount. There are differences in the liquidity of the securities and investment risk of these funds, necessitating separate brokerage accounts to manage them effectively.

• The principal of Part A of the fund and of the Israel Investments sub-account of Part A “shall be inviolate and shall not be invaded or distributed for any purpose whatsoever.”
• Assets in Part A are invested in a diversified portfolio of various asset classes, within levels of risk that are prudent and reasonable, intended to promote long-term growth and capital appreciation.
• The Israel Investments Subaccount was established to reflect Congregation B’nai Israel’s economic support of Israel, as one facet of the congregation’s commitment to engendering in our congregants a firm connection to Israel.
• The Israel Investments Subaccount prioritizes investing in Israel Equity Securities and Israel Fixed Income Securities at the discretion of the Investment Committee and with advice from the advisor.
• Like the general Part A account, assets in the Israel sub-account are invested in a diversified portfolio with the intention of achieving long-term growth and capital appreciation. However, the level of diversity in this account is significantly less than our other endowment fund accounts. This is due to the much smaller number of securities that comprise the stock market in Israel, as well as our decision at this time and for the foreseeable future to invest exclusively in Israel Bonds for the fixed income portion of this fund.

 Endowment Fund Part B

• The principal of Part B of the fund “may be invaded and distributed only for extraordinary non-operating expenditures by the affirmative vote of eighty percent (80%) of the members of the Board of trustees …” 
• Assets in Part B  are invested in a diversified portfolio of various asset classes, within levels of risk that are prudent and reasonable, intended to promote long-term growth and capital appreciation.
• A total return approach of up to 4% of the end-of-year market value of the fund is used to determine the amount available for distribution.