Good stewardship claims a high priority

The old adage, "spend the interest, never the principal," no longer applies to most modern investors. Inflation eats away at the value of "principal" invested in a bank or fixed-rate savings instrument, while the opportunity to make significant gains in portfolio value is lost when investments are selected only with an eye to risk avoidance or cash return (known as yield from dividends and interest). As Jesus' Parable of the Good and Faithful Servants illustrates, good stewardship includes the selection of investments that makes the most of the gifts with which we have been entrusted, even when investing involves some risk.

When determining how to invest endowment funds and other long-term savings, an organization must consider a number of variables: its return requirements, risk tolerance, liquidity concerns, management and transaction costs, and more. The array of available investment options, however, can overwhelm even the savviest investor. Fortunately, most of the investments considered by churches to be appropriate for endowments can be grouped into just a few categories.

• Endowments can live for centuries
• Good stewardship claims a high priority
• Comparing Alternatives for Investment
• Investment selection makes a big difference
• Let the United Church Foundation assist your organization