SAVINGS FUND OF NRC IN UNITED STATES AND CANADA

The proposal to establish a Savings Fund of the Netherlands Reformed Congregations in the United States and Canada was accepted at the 1976 Synod in Grand Rapids with full power to act. The first committee members appointed were as follows: U.S.A. — Garret Hoogerheide, Garret Nieuwenhuis, and Peter Southway; Canada — R. Van Vliet, B. Groenenboom, and J. Honkoop.

The purpose of this fund was to provide finances for the building of churches and schools. A denominational fund provided a way by which individuals and churches may pool their funds and receive interest on their money through loans to churches and schools. Normally when funds are borrowed from chartered banks, insurance coverage is necessary. This obstacle has been removed by having our own lending source.

The following is an historical overview of the Savings Fund in the U.S.A. as reported by Mr. Peter Southway, treasurer:

Our fund was organized on September 20, 1977 as a corporation. At the first meeting, the following officers were elected and still remain in office: Mr. Garret Hoogerheide, President; Mr. Garret Nieuwenhuis, Secretary; Mr. Peter Southway, Treasurer.

On March 24, 1978 we were approved by the Internal Revenue Service as a Non-Profit Organization under Section 501 (c) 3 of the Internal Revenue Code.

Members of NRC churches or organizations affiliated with said congregations can deposit monies in the fund in a minumum amount of $500.00 on which interest is paid annually on June 30 at an interest rate which is set on July 1 for the coming year by the Board of Directors. Interest rates paid ranged from 5.5% to 8.5% and for the year ending 6/30/88 it is payable at 6.5%. Withdrawals can be made subject to six months written notice. Emergency withdrawal request will receive special consideration and can be paid immediately, if funds are available.

The Savings Fund will lend money only to member churches or schools for capital purposes which could include construction of new church or school buildings, or additions and improvements of same. No loans are to be considered for operating expenses. All loans are repayable in regular installments of monthly or quarterly interval with repayment period as long as twenty years.

Loans must be approved by the Board of Directors after receiving a written request by the church or school, supported by financial information supplied by them. Interest rate and repayment terms are determined by the Committee and approved by the Board of Directors. Since we are a Non-Profit Organization, interest rates paid by churches and schools are lower than if funds were borrowed from local banks. Interest rates paid have ranged between 7.5% and 9%, depending on the interest paid to depositors.

Loans can be made to Canadian churches; however, all loans are payable in U.S. Dollars so the exchange rate risk is borne by the borrower.

From 1979 through 1986, $744,000.00 has been loaned to churches and schools. Loans receivable as of 12/31/87 are $106,878.03.

At this date, the fund owns $600,000 U.S. Treasury Bills due 6/09/88 and has $69,500 on deposit in a Bank Money Market Account.

Mr. Henry Scholten provided the following historical information for the Canadian Savings Fund:

In December 1978, the administration of the Fund was transferred to the Norwich Congregation. A three member committee was appointed to operate the Fund: John Honkoop, Otto De Leeuw, and Henry Scholten. Its present members are Isaac Stubbe, John Van Brugge and Henry Scholten.

Our fund balance has increased steadily from an opening balance of $20,000 to its present amount owing to depositors $375,000. Interest is paid twice per year on May and November 1. Request for financial assistance was granted to a congregation and school society to help finance building projects totaling $265,000.

At the present time, most of the money on deposit is from Ontario. We would be most happy to receive deposits from congregations and individuals in other provinces, thereby making it a true Canadian Savings Fund.

May the Lord grant His indispensable but forfeited blessing upon the endeavors of our Savings Fund and remember our congregations and schools in His favor. “Establish Thou the work of our hands upon us; yea the work of our hands establish Thou it.”

Further information will gladly be given by the individual committees with the hope that many may make use of this opportunity to help. “Bear ye one another’s burdens, and so fulfill the law of Christ” (Gal. 6:2).

Members: 6

Rev. J. Den Hoed • 824 18th Ave, Rock Valley, IA 51247 Dr. C. Deur, Clerk • 3000 New Holland St., Hudsonville, Ml 49426

Mandate:

To encourage church members to invest personal savings in a denominational account in order to assist churches and schools in building projects by providing low interest rate loans.

Recent Tasks:

Distribution of funds to several churches and schools in both United States and Canada at low interest rate. Total assets of US Fund, $776,000; of Canadian Fund, $375,000.

Dr. C. Deur is clerk of The Savings Fund of NRC in United States and Canada Committee and an elder of the Netherlands Reformed Congregation of Grand Rapids.

This is the eleventh of a series of NRC committee reports.

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