CR02 Income to be carried to subsequent years for Gateway Gift Distribution
PROPOSED MOTION – Gateway – Unallocated/Undistributed Income to Carry Forward to Subsequent Years
Submitted by: Mountainside Lutheran Church (M/Side#2)
BE IT RESOLVED:
That the Gateway Gift Trust Board allocates/distributes all available funds each year, including 1% of the capital of the Gateway Gift Trust funds.
Funds that are not allocated/distributed in any year are to be retained in the income account, these accumulated funds in the income account then being carried forward and made available for allocation/distribution in the following and subsequent years.
REASONS FOR THE MOTION
Purpose To revise the Gateway Gift Trust Board’s policy relating to the allocation/distribution of funds each year to ensure that any funds not allocated/distributed in any prior year are retained and carried forward in the income account and made available for allocation/distribution in subsequent years.
Explanation Funds not distributed as grants in any year have not been retained in the income account of the Gateway Gift Trust but generally1 been treated by the Gateway Gift Trust Board as capital and reinvested. In this way, these funds have not been made available for distribution in subsequent years but instead have additionally contributed to the growth in the capi
tal base of the trust.
However, this also means that the Gateway Gift Trust Board have limited the total amount available to allocate/distribute in any year to only the income earned in that financial year. This creates a short-term focus and does not allow for making larger and/or longer-term funding commitments for totals exceeding the annual income earned, or to manage years where there is a greater LCNZ-wide request for funding.
This motion will therefore enable:
- funds not distributed as grants in any year to be made available for allocation/distribution as grants in subsequent years, and
- Congregations to plan ahead, and encourage long-term thinking, and
- the Gateway Gift Trust Board to have the capacity and confidence to support and commit to larger and longer-term proposals without having to deny or only partially fund requests for those projects or other shorter-term projects.
The following is an example of how this might apply:
|
A |
B | C | D | E | F |
|
Year |
Brought Forward from previous year (F) | Income + 1% Capital | Funds Available (B + C) | Grants Made |
Unallocated (D – E) to be Carried Forward & available next year (B) |
|
2025 |
$35,000 1 | $139,0002 | $174,000 | $174,000 |
$0 |
|
2026 |
$0 | $200,000 | $200,000 | $150,000 |
$50,000 |
|
2027 |
$50,000 | $250,000 | $300,000 | $220,000 |
$80,000 |
| 2028 | $80,000 | $300,000 | $380,000 | $280,000 |
$100,000 |
Mountainside has also submitted a further remit related to this as follows:
M/Side#1(CR01) – Remit related to the formula used to determine the amount to be allocated to the income account of the Gateway Gift Trust each financial year and made available for allocation/distribution. Should remit (M/Side#1) pass (including the requiring 1%pa to the capital to be made available for allocation/distribution each year), any portion
which remained unallocated/undistributed would then form part of the carry forward amount referred to in this remit (M/Side#2).
Notes:
1 As per the LCNZ Website – the exception is 2025 when an additional $35k was made available from undistributed income from 2024 (available funds under existing policy was determined as $139k but $174k was granted).
2 The Gateway Trust Board did not include the additional 1% capital option this year.
SUBMITTING BODY DETAILS
This has been approved by the authorised body at a duly held meeting and is confirmed as an accurate and complete version of the agreed proposal.
Submitted by Ray Meharg, Chair Mountainside Lutheran Church Parish Council
Approved at Congregational AGM 30/03/2025
