Investment of Surplus Funds

The church may from time to time generate surplus funds. If the amount is relatively small and available for what may be a short period of time, it may be appropriate to transfer the funds to a savings account with the church’s financial institution.

Funds may be generated for special projects such as a building fund, which will accumulate over a period of time before the money is intended to be spent. In such cases, it is appropriate to consider a longer-term investment in an instrument such as a term deposit or guaranteed investment certificate. Most financial institutions offer these and competitive rates should be researched. The FMCiC has an investment fund and issues one-year bonds with competitive interest rates offered. Contact the Administrative Services staff for information.

It is not generally appropriate to invest funds of this nature in corporate bonds, stocks or mutual funds due to the potential for loss of a portion of the capital.

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