The Canons of ECCT and The Episcopal Church both specify that unless received written permission to do otherwise, parishes must invest endowments in a chartered state or Federal bank or in a “Diocesan Corporation” such as Donations & Bequest for Church Purposes Inc. Parishes need to abide with the requirement to safeguard endowment assets and assure the capacity to oversee and manage their funds per ECCT Canon IV.2.A and The Episcopal Church’s Canon 1.7.1.B.
The canons were established to ensure the due diligence, “prudent person,” and the long-term sustainability of the Parishes, Worshiping Communities, and Institutions affiliated with ECCT. To obtain the approval to manage your assets outside of D&B see “Managing assets outside D&B” and complete the Parish Investment Management application below.
Parish Investment Management Canonical Requirements
The Episcopal Church and ECCT Canons related to Parish Investment Management
The Episcopal Church, Canon 7: Of Business Methods in Church Affairs
Sec. 1 (b) Funds held in trust, endowment and other permanent funds, and securities represented by physical evidence of ownership or indebtedness, shall be deposited with a National or State Bank, or a Diocesan Corporation, or with some other agency approved in writing by the Finance Committee or the Department of Finance of the Diocese, under a deed of trust, agency or other deposit or by agreement providing for at least two signatures on any order of withdrawal of such funds or securities. But this paragraph shall not apply to funds and securities refused by the depositories named as being too small for acceptance. Such small funds and securities shall be under the care of the persons or corporations properly responsible for them. This paragraph shall not be deemed to prohibit investments in securities issued in book entry form or other manner that dispenses with the delivery of a certificate evidencing the ownership of the securities or the indebtedness of the issuer.
ECCT, CANON IV – BUSINESS METHODS IN CHURCH AFFAIRS
Section 2. In every Parish, Worshiping Community, and institution connected with the Diocese through its Convention, the following standard business methods shall be observed:
A) Trust and permanent funds and all securities whatsoever kind shall be deposited in a Federal or State Bank or a Diocesan entity. Any parish desiring to deposit permanent funds and securities of any kind whatsoever with any other organization must receive the approval of the Bishops and Finance Committee by filing an application that meets the requirements of the Diocesan Investment Policy. If approved, substantive changes to the information in the approved application as defined in the Diocesan investment policy must also receive the approval of the Bishops and Finance Committee. Small funds and securities refused for deposit as being too small for acceptance shall not be subject to the foregoing deposit requirement. However, this does not in any way diminish the fiduciary responsibility of the Parish to manage these funds appropriately.