A general observation, which probably applies to Perpetual Care/ Bequest reserve funds.  You should have the governing board adopt, with advice from a trust officer, a policy on capital conservation.  Because inflation reduces the purchasing power of funds over time by [in recent years] 1 - 3% annually, you should arrange to retain from the interest or proceeds enough to replenish the effect of inflation.  Our church had a bequest in 1911 of $200, the interest of which was to be used to buy flowers.  If that had been kept inflation-protected, the current value of those 1911 $ would be over $5,000.   So what used to keep the church decorated with flowers all summer came to buy a couple of rose-buds for one Sunday.
B.
----- Original Message -----
From: [log in to unmask] href="mailto:[log in to unmask]">Braintree Treasurer
To: [log in to unmask] href="mailto:[log in to unmask]">[log in to unmask]
Sent: Monday, February 08, 2010 3:45 PM
Subject: cemetery bequest clarification

OK who is the expert on cemeteries because I am a little puzzled on how to invest the bequest money.

I have a 18 month CD maturing which is all bequest money, I understand that I can withdraw and use the

interest earned and reinvest the original benefit? The interest earned can be use for mowing/maintence on the cemeteries –correct?

What and when can the bequest money be used? 

 

 

 

. Thank you in advance

 

 K Russo

Town of Braintree