CHRIST COMMUNITY LUTHERAN SCHOOL LEADERSHIP FUND POLICY

ARTICLE 1-ESTABLISHMENT OF FUND Section 1.1. Establishment of Fund The Christ Community Lutheran School Leadership Fund ("the Fund") shall be a scholarship and school benefit fund established by and on behalf of Christ Community Lutheran School (“CCLS”). Section 1.2 Policy This Policy shall be the governing document of the Fund. This Policy shall be effective upon acceptance by the Christ Community Lutheran Board of Directors.

ARTICLE 2 -PURPOSE The purpose of the Fund shall be to receive gifts and bequests, and to use those gifts and bequests, as provided in this Policy, for the benefit of education at CCLS.

ARTICLE 3 -INVESTMENT COMMITTEE

Section 3.1 Investment Committee 3.1.1 Authority. Subject to the provisions of this Policy, management and direction of the Fund shall be vested in the Investment Committee, which at the present time is the same as the Executive Committee (President, Vice-President, Secretary, and Treasurer) of the CCLS Board of Directors, along with the Executive Director/Principal of CCLS, who shall serve as an ex-officio member of the Investment Committee.

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Section 3.2 Meetings. 3.2.1 Regular Meetings. The Committee shall meet to discuss Fund related business at least twice in each calendar year. Said meetings shall take place during regular monthly executive committee meetings of the CCLS Board of Directors. 3.2.2 Reporting. The Committee shall report twice a year on Fund performance and transaction history to the CCLS Board of Directors. Said reporting shall be provided in the Treasurer’s monthly financial report to the CCLS Board of Directors. Section 3.3 Quorum and Majority Vote. At any meeting of the Fund’s Investment Committee, the presence of at least three members shall be required for the conduct of business, and the Investment Committee shall act only by affirmative vote of at least three of its voting members. Section 3.4 Powers of Management and Investment. 3.4.1 Establishing Accounts. The Investment Committee shall establish an account or accounts for the deposit of the Fund's Incomes, and shall deposit all monies received by the Fund in those accounts. The Investment Committee shall designate the persons authorized to disburse monies from those accounts by their signatures, with the signatures of at least two Investment Committee members required for the disbursement of any monies from any account. 3.4.2 Expenditures. All obligations, expenditures, and other disbursements by the Fund shall be approved by the members of the Investment Committee. 3.4.3 Powers of Management and Investment. (a) Subject to the provisions of this policy, the Investment Committee shall have all power and authority to manage and invest the principal of the Fund. In exercising such power and authority, the Investment Committee may invest and reinvest the principal in any kind of property, real or personal, tangible or intangible, domestic or foreign, and may make any decisions and exercise any rights incident to such investments, or refrain from doing so. In exercising the powers and authority granted by this subsection 3.4.3, the Investment Committee shall be guided by the concept of a prudent investor acting for such investor's own account. (b) Without limiting the powers and authority granted by paragraph (a) of this subsection 3.4.3, the authority is granted to the Investment Committee, to be exercised as they believe to be in the best interests of the Fund: (1) To incur such expenses as are appropriate for the benefit of the Fund, to be paid by the Fund;

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(2) To solicit contributions and to undertake fund-raising campaigns for the benefit of the Fund, and to engage such consultants, advisors, and agents as may be appropriate for those purposes, at the expense of the Fund; (3) To employ accountants, attorneys, advisors, brokers, custodians of assets, and other agents and employees, at the expense of the Fund; (4) To accept and receipt for any inter vivos, testamentary, or other transfer of property to the Fund; (5) To hold property, and to negotiate and execute documents, on behalf of the Fund, in the name of the Fund, or in the name of one or more nominees, without disclosing any fiduciary relationship; (6) To vote, or refrain from voting, securities having voting privileges, and to give any type of proxy, with or without voting directions; and (7) To protect the Fund and its property by insurance against damage, loss, or liability.

3.4.4 Conflicts of Interest. No Investment Committee member or member of the Board of Directors of CCLS shall engage in any self-dealing or transactions with the Fund in which that person has any direct or indirect financial interest. Each such person shall at all times refrain from any conduct in which the person’s financial interests would conflict with the interests of the Fund.

ARTICLE 4 -GIFTS TO THE FUND Section 4.1 Additions to Principal. Subject to section 4.2, gifts received by the Fund shall be added to the principal of the Fund. Section 4.2 Gifts for Designated Purposes. Subject to section 4.3, the Fund may, in the discretion of the CCLS Board of Directors, accept gifts to the Fund specified by the transferor to be added to principal, or to be used for current scholarships or designated for other purposes or programs of the Fund. Section 4.3 Contributions Subject to Restrictions. In the discretion of the CCLS Board of Directors, the Fund may accept or reject any gift or other transfer of property subject to specific restrictions or conditions specified by the transferor. The Fund shall not accept gifts designated for a scholarship for a specific student by name.

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ARTICLE 5 -USE OF PRINCIPAL Section 5.1 Investment of Principal. The principal of the Fund shall be invested and managed to provide income for the uses specified in section 6 of this policy. Except as otherwise specifically provided in section 6, the principal of the Fund shall not be used for any other purpose. Section 5.2 Expenses. If income earned from the principal is not sufficient to pay expenses of the Fund incurred by the Investment Committee pursuant to section 3.4, those expenses may be paid from principal.

Section 5.3 Principal in Excess of Minimum When the principal amount held by the Fund exceeds the minimum amount determined pursuant to this section 5.3, the directors in their discretion may use the principal in excess of that amount in the same order of priority specified for use of income in section 6. The minimum amount of principal shall be One Million Dollars ($1,000,000.00), but that amount shall be increased for each succeeding calendar year in proportion to the increase, if any, in the consumer price index from the month of January, 2008 to January of the respective succeeding year. The consumer price index to be used for this purpose shall be the Consumer Price index, All Urban Consumers, published by the United States Department of Labor for the Saint Louis, Missouri area.

ARTICLE 6 -USE OF INCOME AND DESIGNATED GIFTS Section 6.1 Use of Income Up to 5% of the annual value of the Fund shall be available for distribution by the directors. The annual value shall be determined as of the fiscal year end of the Fund, and will include the principal balance and any income generated by the investments in the fund. The distribution may be expended by the directors in the following manner: (1) Expenses of the Fund; (2) Scholarships for tuition at CCLS for students of parents or guardians who are members of the Five Association Churches, pursuant to the recommendations of the Scholarship Committee;

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(3) In the discretion of the CCLS Board of Directors, scholarships for tuition at CCLS for students of parents or guardians who are not members of the Five Association Churches, pursuant to the recommendations of the Scholarship Committee; (4) In the discretion of the CCLS Board of Directors, expended for technology for the School, or for capital improvements or reserves for capital improvements for the School. (5) In the discretion of the CCLS Board of Directors in times of financial emergency at the school. Section 6.2 Use of Designated Gifts Gifts accepted by the Fund but specified by the transferor to be added to principal, or to be used for current scholarships, or designated for other purposes or programs of the Fund, shall be used for those purposes, without regard to the priority specified in section 6.1.

ARTICLE 7 -SCHOLARSHIP DISTRIBUTION Section 7.1 Scholarship Distribution At present time, the awarding of scholarships shall be administered by the Executive Director/Principal of CCLS. The Executive Director/Principal shall use his or her best judgement and discretion in awarding available scholarship funds. The Executive Director/Principal will report to the CCLS Board of Directors the individuals and the amounts of scholarships awarded. At which time the Fund’s principal balance reaches Five Hundred Thousand dollars ($500,000), the Investment Committee will create a separate scholarship committee. This committee will be responsible with the Executive Director/ Principal for awarding scholarships and establishing the procedures for scholarship application and administration. These procedures must be approved by the Investment Committee and added to this Policy.

ARTICLE 8 - RECORDS AND REPORTS Section 8.1 Fiscal Year The books of the Fund shall be kept on the same fiscal year as that of CCLS.

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Section 8.2 Reports to School In a timely manner after the end of each fiscal year, the Investment Committee shall give a report to the CCLS Board of Directors concerning the Fund, including but not limited to the amount of gifts to the Fund, the current amount of principal, the income of the Fund, the expenses of the Fund, and the disbursements from the Fund for each of the categories specified in section 6 of this policy. The treasurer of CCLS shall have access to the books and records of the Fund required for the performance of the treasurer's duties. Section 8.3 Audits The Investment Committee, in their discretion, may provide for an audit of the financial records of the Fund, at the expense of the Fund. The financial records of the Fund shall be subject to and made available for an audit at the request of the CCLS Board of Directors.

ARTICLE 9 -DURATION AND DISPOSITION OF ASSETS Section 9.1 Duration

The Fund shall continue in existence and operate as provided this Policy, until the earlier of: (a) The dissolution of the Fund as a self-governing body of the school, by the directors of the Fund; (b) Such time as CCLS ceases to exist as a ministry. Section 9.2 Disposition of Assets If the Fund shall cease to exist, then the assets of the Fund, after provision for all expenses and obligations, shall be distributed to CCLS. If CCLS should cease to exist, then the remaining assets of the Fund shall be distributed in accordance with the Constitution of CCLS.

ARTICLE 10 – AMENDMENT OF POLICY This policy may be amended from time to time by the Investment Committee, subject to the approval of the CCLS Board of Directors.

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