Financial Services Overview
Financial Services, of the Maritime Conference of the United Church of Canada, Incorporated is a not-for-profit, incorporated company that has operated successfully for over 30 years to assist churches in the Maritimes, as we work together to help one another. The Board of Directors includes financial professionals, clergy and lay members from Regional Council 15 and from Fundy St. Lawrence Dawning Waters Regional Council 14. It has provided over 75 capital loans to Communities of Faith within those Regions – all of which have been repaid.
It currently administers over 350 two-year term deposits, 420 in-perpetuity trust funds, and successfully manages and invests over $3.5 million in investments. The in-perpetuity trust fund is ideal for cemetery maintenance as the principal is invested in perpetuity providing annual income which can provide an annual income for cemetery upkeep, especially should its supporting congregation close.
One of the major functions of Financial Services is to establish and maintain a fund from which loans can be available to help finance new churches, or additions and renovations to existing church buildings. The funds raised through the issue of the Two-Year Term deposits create this loan fund for capital purposes, which is available for Communities of Faith within the Maritimes. The Two-Year Term Certificates are available to congregations or individual members.
1. The Certificate
Certificates are issued for a two-year term, from the date of purchase, with a minimum amount of $500 to a maximum of $5,000 currently being accepted per calendar year.
Interest is paid yearly, on December 31, at a fixed rate decided annually. Semi-annual payments of interest will be made on July 1 for total investments of $10,000 or more. After placing a request with the Board of Directors, the certificate may be redeemed without penalty in the event of a death or a financial emergency.
The maximum loan period is 10 years and the requirements for obtaining a capital-purpose loan are, the Community of Faith must: i) have 15% of the total project cost in available funds; ii) have a positive cash flow to service the monthly repayment of loan principal and interest, which is to be within 30% of revenues raised for general operating purposes, excluding monies raised for M & S.
If the applicant does not have the required cash flow to manage the additional debt of monthly loan re-payments, a Capital Campaign may be initiated, where pledges for the total amount for the loan are secured in addition to regular givings.
Loans may be paid off early, without penalty or fees, unlike commercial institutions.
Applications may be made to the Financial Services’ Loans Chair
Mr. Lloyd Penney
825 McLeod Avenue
Fredericton NB E3B 9V4
3. In Perpetuity Trust Funds
Another function of Financial Services, is the administration of in perpetuity trust funds, where the principal is non-returnable, as it is invested in perpetuity to generate annual income. These funds are ideal for ensuring ongoing cemetery maintenance.
Financial Services currently accepts a minimum amount of $500 to a maximum of $10,000 per calendar year. Interest is paid yearly, dependent upon when the monies were received and the rate is decided annually.
An Ethical Investment
Everyone understands the benefits of a good investment; however, an increasing number of investors are requesting assurance that their money will be used for worthy purposes, in keeping with their Christian values, a goal shared by Financial Services.
For further information or to purchase a Term Certificate or invest in an in perpetuity trust fund, please contact the Treasurer:
Anne Thompson, MBA
Financial Services, of the Maritime Conference of the United Church of Canada, Incorporated
10 Edgehill Road