At its March meeting, the Vestry

1) approved the recommendation of the Social Ministry Committee for disbursement of $18,000 from the community organizations line item in the amounts of $2000 to Freedom House, $1000 to El Centro Latino, $2000 to a Helping Hand, $1500 to AIDS Alliance Services – Carolina, $2000 to Project Homestart, $1500 to Family Violence Prevention Center, $2000 to Orange County Rape Crisis Center, $3000 to Orange Alamance Prison Ministry, $1000 to The Augustine Project, and $2000 to Martin Luther King Community Planning Corporation Scholarship Fund;

2) approved the recommendation of the Social Ministry Committee for disbursement from discretionary funds in the amounts of $1000 to Episcopal Farmworker Ministry, $500 to Community Cuisine, $500 to People of Faith Against the Death Penalty, and $500 to CITCA Easter Pilgrimage for Peace and Life;

3) committed $1500 to the Johnson Intern Program in 2007, with the intention to continue this level of funding in 2008 and 2009;

4) named Sr. Warden Jim Crow (Chair), Dana Campbell, Paul Carew, David Joseph, Martin Rody, Frances Widman, and Parish Administrator Barbara Hastings (ex officio) as members of the ad hoc Parking Committee and approved the charge to the committee to study the future parking needs of the Chapel of the Cross, with a progress report to be available for the Vestry Retreat on May 12-13;

5) approved the recommendation of the Special Giving Committee to establish four restricted endowed funds, to be known as the Buildings and Grounds Fund, the Evangelism and University Outreach Fund, the Community Outreach Fund, and the Worship and Ministry Fund, the amount of the principal in these endowments to be preserved and held in trust in perpetuity to provide support for the ongoing mission and ministry of the Church;

6) approved the recommendation of the Special Giving Committee to establish the Program Fund and the Capital Fund to support the mission and ministry of the Church at the discretion of the Vestry;

7) approved the recommendation of the Special Giving Committee that 10% of all undesignated bequests and memorials be distributed to outreach beyond the parish and the balance to the Program Fund to support the mission and ministry of the Church;

8) approved a 54-month lease with Pitney Bowes for a postage meter at $142 per month; and 9) approved a 60-month lease with Deans Office Equipment for $1592 per month plus color copies.

Following a bag supper, the Vestry met in focus session for a report from the Special Giving Committee. Vestry members present were Jim Crow (Sr. Warden), Steve Lackey (Jr. Warden), Bunnie Collura, George Evans, Joe Khoury, Jack Scarborough, Mary Schoenfeld, Terry Eason, Ann Henley, Chip Hill, and Melody Savage. Also present were Stephen Elkins-Williams (Rector), Bill Joyner (Deacon), Barbara Hastings (Parish Administrator), John McGee (Treasurer), and Nancy Kelly (Clerk).

Mr. Elkins-Williams opened the focus session at 6:00 p.m. by welcoming to the meeting Syd Alexander, Chair of the Special Giving Committee.

Attached is a document outlining the recommended restructuring of the endowment funds of the parish. Attached to the minutes of the business meeting are the resolutions proposed by the committee.

Mr. Alexander began by stating that an important charge to the Special Giving Committee was to develop a plan that would encourage parishioners to include the church in their estate planning. For such a plan to be realized, there is a need for a strong fiscal policy for gifts to be held in perpetuity. The recommendation of the committee is that four separate endowments be created, with the principal of each to remain intact in perpetuity and the actual value of the fund to be maintained. These four funds are the Buildings and Grounds Fund, the Evangelism and University Outreach Fund, the Community Outreach Fund, and the Worship and Program Support Fund. The committee further recommends the establishment of two additional funds for discretionary use, the Program Fund and the Capital Fund. The committee also recommends that the Vestry move the monies from all current Vestry-restricted funds to the Program Fund and the Capital Fund.

Mr. Alexander said that there would be made available brochures to describe the various possibilities for making gifts to the church.

Mr. Alexander continued by stating that if the resolutions proposed by the committee to establish these six funds are adopted by the Vestry, the Vestry must then change its current policy of how it treats undesignated bequests and gifts. Currently 10% of undesignated gifts are treated as a tithe to outreach, and then the remaining 90% is divided equally among the Buildings and Grounds Endowment, the Outreach Endowment, and Vestry discretionary funds. The recommendation of the committee is that 10% be put in the Outreach Endowment and 90% be added to the Program Fund.

Mr. Alexander opened the issue to questions and discussion.

Mr. Crow asked if income from one endowment fund could be used for another fund, to which Mr. Alexander replied that this would not be possible. Mr. Crow asked if the committee considered the possibility of a fifth undesignated endowment fund so that earnings could be diverted wherever appropriate in any given year.

Mr. Evans observed that the endowments would be less flexible and the Program Fund and the Capital Fund would be more so.

Dr. Khoury asked if there would be counselors available to help parishioners understand the levels of giving. Mr. Alexander referred again to the brochure that is planned and indicated that members of the clergy and members of the committee would also be available as needed.

Mr. Crow asked how the capital campaign interacts with the Capital Fund. Mr. Alexander replied that the Capital Fund could be used as a holding tank for funds from a capital campaign, but this would depend on how the committee sets up the capital campaign.

Mr. McGee asked where the governance of this funds structure lies. It was suggested that perhaps the committee membership needs to be expanded for greater ownership.

Ms Savage asked if undesignated gifts could be moved to a specific endowment fund. Mr. Alexander replied that they could, but once they were moved into an endowed fund, they couldn’t be removed from it.

Mr. Eason asked about the difference between the two funds. Mr. Alexander replied that the Program Fund can be used for anything but that the Capital Fund is limited. He emphasized that program funds could be spent on capital needs, but capital funds could not be spent on program needs.

Dr. Khoury asked if the Program Fund is basically a reservoir for undesignated funds, to which Mr. Alexander answered that it is.

Mr. Lackey asked if there might be any confusion resulting from having two funds with the word program in the name – Worship and Program Support (endowment) and Program Fund. Mr. McGee suggested that the name of the endowment be changed to Worship and Ministry.

Mr. Elkins-Williams thanked Mr. Alexander and asked him to convey thanks to the entire committee.

The focus session concluded at 7:00 p.m., and the Vestry moved to the more formal part of the agenda.

Attachment
- - - Recommendations of Special Giving Committee for Restructure of Endowment Funds

The March meeting of the Vestry was held in the parish library on Thursday, March 16, 2006. Vestry members present were Jim Crow (Sr. Warden), Steve Lackey (Jr. Warden), Bunnie Collura, George Evans, Joe Khoury, Jack Scarborough, Mary Schoenfeld, Terry Eason, Ann Henley, Chip Hill, and Melody Savage. Also present were Stephen Elkins-Williams (Rector), Bill Joyner (Deacon), Barbara Hastings (Parish Administrator), John McGee (Treasurer), and Nancy Kelly (Clerk).

The Rector presided and opened the business meeting at 7:00 p.m.

Bible Study

Dr. Khoury led the Bible study for the evening. The Gospel reading appointed for the day was Mark 4: 21-34. Dr. Khoury concluded the Bible study by reading Psalm 121.

Selection of Timekeeper

Mr. Evans volunteered to serve as timekeeper.

PARISH CONCERNS

Mrs. Schoenfeld reported a concern of parishioners about the sound system in the church. At present, only Rob Sullivan is able to troubleshoot problems that arise during services, but David Brown is being trained. There is a need for additional individuals to be trained, with the goal that there be someone who attends each service trained to deal with problems as they arise. The matter was referred to the Buildings and Grounds Committee.

Mrs. Schoenfeld also brought up the ongoing problem with parking. Mr. Elkins-Williams said that a committee to study this issue is on the agenda for approval this evening.

The following correction was made to the minutes of the focus session of February 16:

p. 1, third line, following Terry Eason’s name, insert “(also a member of the Next Step Committee)”

The following correction was made to the minutes of the Vestry meeting of February 16:

p. 3, first line under Conversation with Hugh Tilson, change “permanent deacon” to “deacon”

p. 5, third paragraph under Buildings and Grounds Committee, change “It is expected that the first Sunday service back in the chapel” to “It is hoped that the first Sunday service back in the chapel”

The last item of the addendum, notification of Reid Conrad of his election as Treasurer-Designate, has been completed. All other items are to remain on the addendum, pending completion.

The following item was placed on the Consent Agenda (attached, along with tracking forms):

-recommendation of the Social Ministry Committee for disbursement of $18,000 from the community organizations line item in the amounts of $2000 to Freedom House, $1000 to El Centro Latino, $2000 to A Helping Hand, $1500 to AIDS Alliance Services – Carolina, $2000 to Project Homestart, $1500 to Family Violence Prevention Center, $2000 to Orange County Rape Crisis Center, $3000 to Orange Alamance Prison Ministry, $1000 to The Augustine Project, and $2000 to Martin Luther King Community Planning Corporation Scholarship Fund

- recommendation of the Social Ministry Committee for disbursement from discretionary funds in the amounts of $1000 to Episcopal Farmworker Ministry, $500 to Community Cuisine, $500 to People of Faith Against the Death Penalty, and $500 to CITCA Easter Pilgrimage for Peace and Life

It was moved by the Social Ministry Committee and passed unanimously that the Vestry approve the Consent Agenda.

Referring to the proposal for the ad hoc Parking Committee, Mr. Elkins-Williams suggested adding the Parish Administrator as an ex officio member of the committee.

It was moved by Mr. Lackey, seconded by Mr. Scarborough, and passed unanimously, that the Vestry approve Sr. Warden Jim Crow (Chair), Dana Campbell, Paul Carew, David Joseph, Martin Rody, Frances Widman, and Parish Administrator Barbara Hastings (ex officio) as members of the ad hoc Parking Committee and approve the charge to the committee to study the future parking needs of the Chapel of the Cross in light of the Next Step Committee’s draft facility proposals (including during construction phases), identify present and future resources available to us, and make recommendations to the Vestry, with a progress report to be available for the Vestry Retreat on May 12-13, 2006.

Deacon (Bill Joyner)

Mr. Joyner reported that the recent conference of the Consortium of Endowed Episcopal Parishes was a wonderful event.

Senior Warden
The Sr. Warden’s report is attached.

Mr. Crow reminded the Vestry that he has tickets available for the Claire Holley concert.

The new chapel organ will be used for the first and third segments of the Tuesday Bach’s lunch series in April and May. Van Quinn and Tom Bloom will be the organists. Mr. Elkins-Williams said that a liturgical dedication of the organ will also be planned.

Junior Warden
The Jr. Warden’s report is attached.

Referring to the first paragraph of the report, Mr. Lackey said that annual giving, special giving, and capital giving efforts must be coordinated, as all are interrelated and none exists in a vacuum.

Parish Administrator

The Parish Administrator’s report is attached. Also attached are lease proposals for a postage machine and for printing equipment.

Mrs. Hastings said that the proposal for the postage meter is a good deal, with a new machine at the same price.

It was moved by Mr. Evans, seconded by Mr. Scarborough, and passed unanimously, that the Vestry approve a 54-month lease with Pitney Bowes for a postage meter at $142 per month.

Mrs. Hastings explained the differences between the two bids for printing equipment. She favors the bid from Deans Office Equipment, although the cost is a little higher, because of the company’s reputation for quality service. The Deans bid includes a Toshiba E-studio 850 large capacity high speed black/white copier/printer 85 ppm with finisher/stapler/hole-punch/booklet maker, and post inserter for inserting color pages into documents (@ $564), an Oki Color B/W System with finisher 36 ppm color, 40 ppm b/w with finisher/stapler/hole-punch/booklet maker (@$270), MBM Folding Machine with 6 preset folds (@$58.50), and service contract at 70,000 b/w copies per month (@$700 with overage $0.01), and color copies at $0.10 per copy, estimated 2500 per month ($250).

It was moved by Dr. Khoury, seconded by Mr. Crow, and passed unanimously, that the Vestry approve a new 60-month lease with Deans Office Equipment for $1592 per month plus color copies, as described in the proposal.

The impact of the printing equipment contract on the 2006 budget will be $1500-2000.

Treasurer
Attached are the Treasurer’s Narrative Report for February 2006 and the draft Combined Balance Sheet as of February 28, 2006.

Mr. McGee said that we need to watch pledges carefully over the next few months. Pledges are coming in slowly, and we haven’t yet met the pledge goal set for 2006. Mr. Elkins-Williams said that the good news is that there have been a lot of new families coming in post-campaign.

Mr. McGee turned the attention of the Vestry to the proposed resolutions from the Special Giving Committee. He said that these funds would be set up in perpetuity and, in effect, would make irrevocable what our customary practice has been. He suggested that all of our previously restricted funds could be set up as sub-sets of the new endowed funds. It was noted that the Vestry had changed the name of the Worship and Program Support Fund to the Worship and Ministry Fund.

It was moved by Mr. Hill, seconded by Mr. Evans, and passed unanimously, that the Vestry of the Chapel of the Cross approve the recommendation of the Special Giving Committee to establish four restricted endowed funds, to be known as the Buildings and Grounds Fund, the Evangelism and University Outreach Fund, the Community Outreach Fund, and the Worship and Ministry Fund. It is the intent of the Vestry that the amount of the principal placed in these endowments be preserved and held in trust in perpetuity to provide support for the ongoing mission and ministry of the Church. The income generated by these endowments may be used for the purposes set forth in the descriptions of the funds. The principal shall not be available for use for any purpose, including serving as collateral for any borrowing the Church may undertake. Sums that may be added to these endowments from time to time shall be governed by the terms of this resolution. The Vestry may from time to time establish policies to govern the investment criteria for the endowments and further to provide for the proper use of the income generated by the principal of the endowments. It is the intent of the Vestry that any such investment policies include provisions to ensure that the real value of the endowments be maintained.

It was moved by Ms Savage, seconded by Dr. Khoury, and passed unanimously, that the Vestry approve the recommendation of the Special Giving Committee to establish two funds to use to support the mission and ministry of the Church, these funds to be known as the Program Fund and the Capital Fund. The assets of these funds may come from undesignated gifts, bequests, or memorials, as well as from gifts designated for these particular funds. Income from the restricted endowments may also flow into these funds if the use is consistent with the terms of the restrictions. The assets of these funds, both principal and income, shall be used to support the mission and ministry of the Church at the discretion of the Vestry.

The Vestry then discussed the details of the third resolution, how to treat undesignated bequests and memorials. At present, a 10% tithe is immediately available for expenditure at Vestry discretion. The recommendation to put 10% in the endowment for Community Outreach would make this money unavailable, as it would added to the principal of the endowment. The Vestry decided to amend the recommendation to assign 10% of undesignated bequests and memorials to outreach beyond the parish and therefore available for immediate distribution if the Vestry so wished.

It was moved by Mr. Hill, seconded by Mr. Eason, and passed unanimously, that the Vestry approve the amended recommendation of the Special Giving Committee that ten percent (10%) of all undesignated bequests and memorials be distributed to outreach beyond the parish and the balance (90%) to the Program Fund to support the mission and ministry of the Church.

Finance Committee
The report of the Finance Committee is attached.

Mr. Scarborough reported that 90% of the master plan fee has been paid to Hartman-Cox.

Buildings and Grounds Committee
The report of the Buildings and Grounds Committee is attached.

Referring to the issue of automatic door openers for the interior entrance to the church, it was suggested that an usher be available to assist individuals who need help with these heavy doors.

Mrs. Hastings reported that the elevator flooded today, the result of a broken sump pump.

Johnson Intern Program

The Rector welcomed to the meeting Watty Bowes, Chair of the Board of Directors of the Johnson Intern Program.

Attached is a memo updating the Vestry on the Johnson Intern Program.

Dr. Bowes began by thanking the Vestry, on behalf of the Johnson Intern Program, the Board of Directors, and Director Susan Gladin, for the financial and in-kind support it has received from the Chapel of the Cross.

Speaking about the progress of the program and the changes anticipated, this year the program will assign the first intern to serve with a for-profit company with a well-defined social mission. The program hopes, too, to increase the number of interns over the years. It hopes, as well, to serve as a model for other programs.

The budget for five interns is about $136,000 per year. The goal is to raise $500,000 over the next three years. To date, $87,000 has been raised, and grant proposals have been submitted. The program requests that the Chapel of the Cross continue its current level of support of $15,000 per year for the next three years.

Dr. Khoury asked how the interns are recognized when they graduate, if there is any official recognition from an official institution such as the university or the diocese for the interns for having completed a series of requirements. Dr. Bowes replied that they are recognized at a church service and that since the program is associated with the Americorps program, it can be put as such on their resume.

  Dr. Bowes said that the programs wants to remain associated with the Chapel of the Cross and with the Episcopal Church, but it also wants to have greater appeal to other faith communities. It is the only program in our diocese identified for young adults.

  Mr. Eason asked if the program has lost its sense of the interns worshiping together. Dr. Bowes said that all interns are required to be associated with some parish, and some have chosen to worship at the Chapel of the Cross, while others worship at other churches locally.

  Mr. McGee asked how far the current funding carries the program, to which Dr. Bowes replied that this year is fully funded. Mr. Crow asked how much additional funding is needed to fund next year, and Dr. Bowes said that the program needs $60,000?80,000 in addition to what has already been committed.

Ms Savage commended Dr. Bowes for his many years of work with the Johnson Intern Program, through good times and bad, and the Vestry responded with applause.

Following Dr. Bowes’s departure from the meeting, the Vestry continued discussion of the request for funding. Mr. McGee stated that any funding of the Johnson Intern Program should probably be included in the normal operating budget.

It was moved by Mr. Crow, seconded by Ms Savage, and passed unanimously, that the Vestry commit $15,000 to the Johnson Intern Program in 2007, with the intention to continue this level of funding in 2008 and 2009.

The report of the Hospitality Committee is attached.

A meeting is planned to evaluate the funeral reception ministry.

Global Missions Committee

The report of the Global Missions Committee is attached.

Ms Henley reported that Barbara Day has returned from her mission trip to South Africa and would like to pursue how to help the school she visited.

The Honduras trip is in the planning stages. Ms Henley reported that the contributions and reimbursements referred to in the report are in addition to the line item funding.

Announcements

The next Vestry meeting will be on April 27. Since that date falls during the week of the ABC Sale, the meeting cannot be held in the parish library. Vicar Lisa Fischbeck of the Church of the Advocate has offered the use of Ephesus Place for the meeting.

Crop Walk will take place on April 9.

The Rector offered a prayer and the meeting adjourned at 9:15 p.m.

LIST OF ATTACHMENTS

(Attachments are available in the library for review.)

Mr. Evans, Wardens, and Rector – Continue study of issue of clarification of Buildings and Grounds Committee membership and structure.

Buildings and Grounds Committee – Check with Hartman-Cox before proceeding to replace maple trees.

Buildings and Grounds Committee – Follow up on the issue of having available at each service someone trained to troubleshoot problems with sound system.