World markets began January 2019 in the throes of a significant market correction that began in October of the previous year. As reported last year, the church’s assets were somewhat insulated from these events putting us in a somewhat enviable position of only being down 5.5% from 2018. However, as world political and social events stabilized, the market began to recover and ultimately surpass its high point of 2018. In doing so, the bull market continued to defy the market pundits’ negative outlook. The Dow Jones Index ended 2019 up 22% and the Standard and Poor’s index ended the year up 29%. National and world gains translated locally to the Waterbury Congregational Church as its collective investments, being slightly more conservative, increased by nearly 20% ($207,252).
Given this good fortune the decision before the church is how to distribute these gains among the portfolio to best support the church’s many functions. Maintaining the church’s physical stature both in outward appearance and its infrastructure is essential if this 200 year old structure is to continue to be used as the important meeting house that it is for its parishioners and the larger community. For this the trustees recommend that 45% of the gains ($93,263.40) be added to the Firm Foundation account. Recognizing that economies ebb and flow and the current bull market will come to an end at some unknown time, the trustees recommend that 45% of the 2019 gains be added to the Endowment account to further strengthen the church’s financial position for when those down economic times arrive. However, in the short term, given the relative prosperity of the church’s current investments, the trustees also recommend the remaining 10% of the 2019 gains ($20,725.20) be applied to the Enrichment fund to further support and enhance the church’s mission beyond its basic and daily needs. Examples of past uses of this fund include youth puppet shows and mission trips for both youth and adults. Distribution recommendation appears in Table 1 (next page) and below.
Endowment: 45% ($93,263.40)
Firm Foundation: 45% ($93,263.40)
Enrichment: 10% ($20,725.20)
Table 1. Illustration of 2019 gains distribution to Endowment, Firm Foundation, and Enrichment accounts.
| Fund | Prior Balance | % | Designated Income | Expenses | New Balance | Allocation of Gains | New Balance with Gains | Desired Allocation |
| Endowment | $497,989.83 | 54.20% | $0.00 | -$17,000.00 | $480,989.83 | $93,263.40 | $574,253.24 | 45.00% |
| Housing | $194,733.04 | 21.20% | $0.00 | $0.00 | $194,733.04 | $0.00 | $194,733.04 | 0.00% |
| Firm Foundation | $179,010.72 | 19.50% | $400.00 | -$6,680.00 | $172,730.72 | $93,263.40 | $265,994.12 | 45.00% |
| Amy Bingham | $4,639.22 | 0.50% | $0.00 | $0.00 | $4,639.22 | $0.00 | $4,639.22 | 0.00% |
| General Enrichment | $11,952.30 | 1.30% | $317.89 | $0.00 | $12,270.19 | $20,725.20 | $32,995.39 | 10.00% |
| Somerville | $4,526.37 | 0.50% | $0.00 | $0.00 | $4,526.37 | $0.00 | $4,526.37 | 0.00% |
| Goodwill | $3,594.63 | 0.40% | $0.00 | $0.00 | $3,594.63 | $0.00 | $3,594.63 | 0.00% |
| Graves | $9,258.98 | 1.00% | $0.00 | $0.00 | $9,258.98 | $0.00 | $9,258.98 | 0.00% |
| Memorial | $7,500.53 | 0.80% | $0.00 | $0.00 | $7,500.53 | $0.00 | $7,500.53 | 0.00% |
| Music Instrument | $5,159.47 | 0.60% | $0.00 | $0.00 | $5,159.47 | $0.00 | $5,159.47 | 0.00% |