Foundation director explains merger of school, parish endowment

Q:  For those who are not familiar with The Manogue Perpetual Endowment Foundation, Inc., can you explain when and why it was created?

A:  The foundation was incorporated in 2002 as a supporting organization of the Diocese of Sacramento. It was created to perpetuate, support and uphold the work of parishes and parish schools in the diocese.

Q:  What assets from what entities do the respective foundations have currently?

A:  The Manogue Perpetual Endowment Foundation has $18.7 million in endowment assets (consisting of approximately 74 endowments owned by 46 parishes) and holds all endowments in trust. The Catholic Foundation has net assets of $14.3 million representing diocesan endowments in support of Catholic schools, seminarian education and social services.

Q:  How have parishes and schools received payouts from the Manogue Foundation?

A:  Payouts are received upon the request from the pastor.

Q:  Who has managed the Manogue Foundation?

A:  It has been managed by a board of directors appointed by Bishop Jaime Soto.

Q:  Why is The Manogue Perpetual Endowment Foundation being assumed by The Catholic Foundation? What are the reasons and what are the benefits of taking this action?

A:  There are two primary reasons. One is to bring the Manogue endowment assets into the Catholic Foundation so we can exercise responsible stewardship of endowment funds through professional management and investment policies. By doing this we will make the diocesan financial structure more efficient and will realize greater efficiencies in financial reporting.

The second reason is that parishes and parish schools with endowments will now be able to take advantage of the marketing and promotional support provided by The Catholic Foundation. An example is the planned giving (charitable investing) marketing services offered by The Catholic Foundation and its support committees.

Q:  Will there be any changes for parishes or schools as a result of this action?

A:  As a result of this change, parishes and schools will experience enhanced accountability and promotions through enhanced communications, reporting and support of their local endowment efforts. Account holders can be assured that the security of the funds and the investment and distribution process will remain the same.

Q:  Can you give readers a quick explanation of The Catholic Foundation?

A:  The Catholic Foundation provides a way for Catholics to support the many ministries of the parishes, schools and agencies of the Diocese of Sacramento. Established in 2004, the foundation’s focus is to ensure a strong financial basis for continuing services to the faith community in the 20 counties of Northern California for years to come. The Catholic Foundation operates in support of the diocese with oversight provided by a fiduciary board of directors appointed by Bishop Jaime Soto.

Q:  How are the funds in The Catholic Foundation of the Diocese of Sacramento invested?

A:  Participants select from three options depending upon their investment needs and objectives. The three investment funds cover the spectrum of risk and offer varying asset allocation options.

All participant funds are invested through Christian Brothers Investment Services, in accord with our social responsibility guidelines where social and moral responsibility for investments is guided by Roman Catholic social and moral teaching. So, the “stewardship of resources” goes beyond simple fiduciary responsibilities of ensuring acceptable return on investments. Investments must reflect commitment to other values as well, such as the sacredness of life, the dignity of the individual, collaboration and the care for the poor.