History
A small group of men with hearts of faith, visionary financial planning, and a desire to provide the means to finance church building programs was the beginning of the Prairie District Trust Foundation. The Trust Foundation originated as a result of district conference action in 1973. A resolution ‘that the Board appoint a committee of three, charged with receiving of Individual Trusts or Loan Investments…’ was approved at that conference in Calgary.
In 1975, more than 40 years ago, the Prairie District Trust Foundation commenced operating with only $300. If you don’t like history, call this a lesson in financial investing. If talk of money, investments, and interest rates makes you nervous, call this a lesson in faith and vision. The fact is that the vision of the Foundation founders and district conference action has, by God’s grace, multiplied. In a 1994 Foundation report, Rev. Tony Hanson noted that Rev. John Penner from Mont Nebo EFC was the first bondholder, investing the sum of $100. Today the bondholder amount is approximately $7 million. The total assets of the Foundation have increased from an initial $300 to $8.3 million.</
Church Plants
Retained earnings from the foundation have been a means of funding district outreach ministries. To date, almost $400,000 has been transferred into District Church Planting and New Works ministries.
Investments
Interest rates are determined by the Trust Foundation Board. Deposits carry a five-year rate of return, presently set at 2% (subject to change). The deposit can be redeemed early. If redeemed prior to the first year anniversary, the rate paid is 1% less than the five-year rate.
The foundation seeks to pay withdrawals when requested, though a 30-day notice is appreciated and on larger investments, a six-month period may be required.
Loans
Since 1979 (the year of the first loans to Big River EFC and Highland Park EFC), the Trust Foundation has granted 48 loan amounts from $14,000 to $2.385 million, totaling $16,773,720 to July, 2018.
The Trust Foundation does not qualify for deposit insurance available to many commercial institutions. Thus funds for the foundation are secured in three ways:
- Only member congregations of the EFCC and their ministry partners can qualify for loans.
- Loans are made with a first mortgage on the property involved.
- A reserve is held at all times equal to at least 10% of all outstanding certificates.
