CD Interest

by Kathy
(IL)

80 years ago someone gave our church a monetary gift that was to be invested and the interest used to help pay the pastor's salary. Over the years the church has deposited that interest in the general fund. The donation at the time was a substantial for that time period, not so much now. The money is in a cd now and the interest is not that great because the amount is not that great.

The details of the gift were handed down from pastor to pastor and the former treasurer wrote a memo with the instructions. However, we had a fire that destroyed part of our church and a lot of records and we no longer know exactly what the memo said.
What I wanted to know is, since the interest is not very much, and the money is in a cd, and we don't really need it at this time for the pastor's salary, if it would be acceptable to leave the interest in the cd and let it roll over. That would help the cd grow in case we ever did need it to help with the pastor's salary. If we did this, how would we record it?
Again, we don't know all the details of the initial gift, in fact we don't know who even gave it.
Thanks for any and all help.

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Comments for CD Interest

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Apr 22, 2010
Investing Temporarily Idle Cash
by: Marcus in Texas

A very good question. My suggestion is that the person submitting this question contact a company like GuideStone Financial Resources of the Southern Baptist Convention (1-888-984-8433) to obtain some advice. Since this organization specializes in retirement plans for pastors and other church employees, including IRA's they may also have dealt with questions of this type previously. I don't know what type of investments churches can make, but GuideStone should know. They may have something or know of something that could beat what CDs are currently paying........

Good luck......

Vickey's Two Cents :-)
Great answer, Marcus, as usual. I love GuideStone Financial Resources' site.
They have some good information on their site. Check out their Tools and Education section also.

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