Custodial Agreement 


The Custodial Fund Agreement is effective as of the date signed, and is between The Baptist Foundation of California, a nonprofit corporation, whose mailing address is 3210 E. Guasti Road, Suite 640, Ontario, CA, 91761 and the ministry (participant) signing up through this online application, whose mailing address is listed on the application. Participant has or will transfer to Foundation the total sum indicated in the application. The asset so transferred, together with any additional assets transferred to the Foundation by the Participant for manaegment under this Agreement, will be held and invested in accordance with the terms of the Custodial Agreement incorporated herein and the policies included in the attached Information to Participants booklet and addendum. We, the undersigned, certify that we are duly authorized to execute this agreement on behalf of the Participant. In the future administration of this account, any two or more of the individuals below may sign on this account. We further certify that the Participant has read, understood and agreed to all statements in the Information to Participants booklet and addendum provided by The Baptist Foundation of California. The Foundation has the right to rely on the information provided in this application (and any subsequent notices) and will be held harmless when responding to the authorized signatories. 

  • The Asset of the Participant and control of the Asset remains with the Participant. The Asset is held
    by the Foundation in a custodial capacity only for investment purposes and not as a trust. Foundation shall manage the Asset according to the Uniform Management of Institutional Funds Act as provided by California statutes.
  • Foundation shall invest and reinvest the Asset in compliance with Participant’s instructions. The Participant may choose to allocate the Asset among the investment options offered by the Foundation, including, but not limited to one or more Common Investment Funds and the underlying portfolios that constitute the Common Investment Funds maintained by the Foundation. Foundation may employ consultants and advisors concerning management of the Asset and its Common Investment Funds and the underlying portfolios that constitute its Common Investment Funds. Foundation shall furnish Participant a quarterly account statement showing status and earnings of the Asset. Foundation shall pay income, or make distribution, on the Asset in accordance with the written directions of the Participant and the then current
    policies of the Foundation. Foundation shall at all times hold and administer the Asset in accordance with the terms of Foundation’s Investment Policy as may be modified by the Foundation from time to time.
  • Foundation shall, upon specific instructions of Participant, separately invest such portion of the Asset(s) as Participants shall require, provided, however, that on such separately invested Assets, Foundation shall deduct its cost recovery charge prior to determining the net income of such separately invested Asset.
  • Participant acknowledges that the Foundation will receive a management fee in accordance with its stated schedule. The fees are based on the market value of the assets under management and are calculated by applying the annual fee percentage to the total market value of the Asset, multiplied by a fraction, the denominator of which is the number of days in the applicable year and the numerator of which is the number of days during which such assets were under management. All fees shall be payable from the assets invested by the Participant with the Foundation.
  • Participant or Foundation may cancel this Agreement at any time by a 90 day written notice. Upon
    termination, the Foundation shall distribute all assets then held by it hereunder to the Participant.
  • Participant may withdraw income and principal at any time during the term of this Agreement upon 30 days prior written notice, signed by the designated representative of Participant. The Foundation reserves the right to distribute assets in kind rather than be required to liquidate the assets. The Agreement shall be governed by and interpreted in accordance with laws of the State of California. 7
  • The Foundation’s income comes primarily from five sources: (a) management fees for assets managed by the Foundation through its Trust Division; (b) management and related fees earned through its Lending Services Division; (c) investment income; (d) gifts and (e) other miscellaneous sources.
  • Participant represents that it is recognized as exempt from federal income tax under 501(c)(3) of the Internal Revenue Code of 1986, as amended, and is one, or more, of the following: (i) Baptist institution, agency, commission, foundation, association or church affiliated with the California Southern Baptist Convention, the Southern Baptist Convention or other state Baptist Conventions; or (ii) a trust with either its total remainder or its income for a predetermined period designated for charitable organizations in accordance with IRS guidelines and at least one-half the distribution designated to be made to a Baptist institution,agency, commission, association or church affiliated with the California Southern Baptist Convention, the Southern Baptist Convention or other state Baptist Conventions; or (iii) such other qualified charitable trust or entity, which may or may not be affiliated with said Baptist Conventions, the Assets of which the Board of Directors of the California Baptist Foundation determines it will receive and administer.
  • Participant acknowledges that the entirety of the Asset consists of funds of a charitable entity. The
    Participant warrants that none of the assets transferred by the Participant to the Foundation are held for retirement plans.
  • Participant acknowledges that it has received and reviewed the Investment Policy of the Foundation and that it, or its representatives, possesses such knowledge and experience in investments of this type to evaluate the risks and merits of the investment options made available by the Foundation. The Participant acknowledges that the Foundation does not guarantee the results of its investment strategies. Past investment performance history is not an indicator, nor a guarantee of future performance.
  • All notices and requests after the date of this Agreement shall be deemed to have been duly given if in writing and delivered or sent by U.S. mail, to the respective addresses set forth at the beginning of this Agreement.
  • The Participant is prohibited from assigning, encumbering or otherwise transferring its interests in the investment option made available by the Foundation under the terms of this Agreement. This paragraph shall not affect the Participant’s right to distributions as provided elsewhere in this Agreement.
  • In consideration of the services provided in this Agreement, Participant agrees to release and hold
    harmless Foundation, its officers, directors and employees, for any errors or omissions that may occur in relation to Foundation’s good faith performance of its duties. In particular and without limitation, Participant acknowledges that it understands that the Asset is subject to gains or losses due to market conditions, the economy and the performance of particular investments, and agrees to, and hereby does, release and hold the Foundation harmless from any claims that Participant might have in the future arising out of such errors or omissions.

Information to Participants

Year Ending December 31, 2018

This Information for Participants describes the availability of certain Common Investment Funds and
portfolios, and the terms and conditions under which The Baptist Foundation of California offers its
investment services to Baptists and other qualifying charitable organizations. This Information for Participants is given in compliance with the Philanthropy Protection Act of 1995, and is addressed only to organizations in the categories described below (see “Eligible Participants”). This Information for Participants is not intended to be distributed to any other person or entity, or for any other purpose

THIS INFORMATION STATEMENT HAS NOT BEEN REVIEWED OR APPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY OTHER FEDERAL OR STATE REGULATORY AUTHORITY. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

There are certain investment risks associated with participation in the Common Investment Funds as described in this Information for Participants. This disclosure statement is published annually. Current information is available upon request.

THE BAPTIST FOUNDATION OF CALIFORNIA IS NOT REGISTERED AS AN INVESTMENT ADVISER AND DOES NOT PROVIDE INVESTMENT ADVICE TO PARTICIPANTS OF THE COMMON INVESTMENT FUNDS OR PORTFOLIOS DESCRIBED HEREIN. INVESTMENT ADVICE, IF ANY, TO PARTICIPANTS OF THE COMMON INVESTMENT FUNDS OR PORTFOLIOS SHOULD BE PROVIDED BY SEPARATELY COMPENSATED THIRD PARTY INVESTMENT ADVISERS WHO ARE REGISTERED UNDER FEDERAL AND/OR STATE LAW OR ARE EXEMPT FROM SUCH REGISTRATION.

What is the purpose of The Baptist Foundation of California

  • The primary purpose of The Baptist Foundation of California is to generate perpetual resources for Baptist causes by serving faithful stewards. The Foundation generates perpetual resources as it grows the trusts, endowments and other assets it manages. Each year the Foundation distributes millions of dollars of earnings from these funds to Baptist entities within California and around the world. The Foundation grows the funds it manages by promoting charitable bequests through thoughtfully planned and properly drafted estate plans, assisting with the planning and implementing of charitable gift arrangements, and managing assets entrusted to the Foundation with the ultimate aim of providing support for the mission and ministry efforts of Baptists.
    The Foundation encourages faithful stewardship by: Managing funds entrusted to it in an effective and socially responsible manner;
  • Educating people in appropriate Christian inheritance planning and financial management techniques; Providing trustee and fund management services which facilitate fiscally responsible investing; Encouraging individuals to be good Christian stewards;
  • Educating individuals about means of contributing to Baptist causes while maintaining an income stream for themselves, their families or friends;
  • Striving for excellence in all operational activities; and
  • Operating with the highest Christian moral and ethical standards.

In the fulfillment of its mission, the Foundation seeks to serve Baptists, their institutions and other Christian entities by offering investment opportunities that are capable of being socially screened and diversified in ways that individual investors may not otherwise be able to achieve. The Foundation also seeks to build endowments for Baptist ministries at state, national and worldwide levels through present, deferred and planned gifts.

How does the Foundation select investments for social responsibility?

The Foundation, responding to the Biblical challenge of responsible stewardship, calls for conscious
investment decisions consistent with Christian morality and ethical principles. Investment objectives of the Funds are pursued with consideration for Christian moral and ethical values of investing. The Foundation encourages investment in those corporations that promote the common good and avoids investment in companies whose principal business activities are inconsistent with Christian moral and ethical values. An overview of the social screening characteristics applied to equity and debt investments is described in The Baptist Foundation of California Investment Policies. These policies will be made available upon request.

Who can invest with The Baptist Foundation of California

The Foundation manages funds for entities or trusts which fall into one or more of the following categories of eligible Participants: (i) Baptist institutions, agencies, commissions, foundations, organizations, associations and churches which are recognized as exempt from federal income tax under 501(c)(3) of the Internal Revenue Code of 1986 as amended (“charitable entity”) and who are affiliated with the California Southern Baptist Convention, the Southern Baptist Convention or other state Baptist Conventions (“Baptist entity”); or (ii) a trust with either its total remainder or its income for a predetermined period designated for charitable organizations in accordance with IRS guidelines with at least half of the distributions designated to be made to a Baptist entity; or (iii) such other qualified charitable trusts or charitable entities, which may or may not be affiliated with said Baptist Conventions, the funds of which the Board of Directors of The Baptist Foundation of California has determined would be appropriate to receive and administer. None of the funds invested with the Foundation may be held as part of a Participant’s retirement plan.

What are the investment options with The Baptist Foundation of California

The following is a summary of the two basic investment options available to churches and associations
wishing invest with the Foundation. There is an additional equity option that is more fully described in an expanded version of the Information for Participants. These Funds have been created to meet the investment requirements for the different types of accounts under administration.

Cash Fund

The Cash Fund’s objective is liquidity and a nominal rate of return. This Fund is designed for short term
investment of funds when the timing of the investor’s liquidity needs is uncertain or variable. The
balance of the Cash Fund as of December 31, 2018 was $ 6,509,298.

Mid Term Income Fund

The Mid-Term Income Fund’s objective is current income and preservation of principal for mid-term
managed accounts with investment horizons of one (1) to two (2) years. This Fund is totally invested in
church paper, including church loans and church bonds.

This Fund currently pays an annual stated return of two percent (2.5%). Church loans consist of loans
to churches primarily for the purchase of land and refinancing existing facilities. All church loans are
secured by first deeds of trust on the property and have maturities of up to five (5) years. Church
bonds are issued primarily for new construction, upgrading existing facilities or refinancing existing
debt. Church bonds are secured by first deeds of trust on the property and have maturities of up to
five (5) years. The balance of the Mid-Term Income Fund as of December 31, 2018 was $4,383,043.
The weighted average maturity on investments in the Mid-Term Income Fund is 3 years.

Long Term Income Fund

The Long-Term Income Fund’s objective is current income and preservation of principal for long-term
managed accounts with investment horizons of more than three (3) years. Funds that are withdrawn
before the three year term is completed will have the interest paid on those funds reduced to the
Mid-Term rate. This Fund is totally invested in church paper, including church loans and church bonds.
Church loans consist of loans to churches primarily for the purchase of land, new construction or
renovation of existing facilities. This Fund currently pays an annual stated return of three and onequarter percent (3.25%). All church loans are secured by first deeds of trust on the property and have
maturities of up to ten (10) years. Church bonds are issued primarily for new construction, upgrading
existing facilities or refinancing existing debt. Church bonds are secured by first deeds of trust on the
property and have maturities of up to thirteen (13) years. The balance of the Long-Term Income Fund
as of December 31, 2018 was $16,317,130. The weighted average maturity on investments in the Long-
Term Income Fund is 7 years.

What are the Risks?

Approximately 36% of the Foundation’s investments are primarily invested in church bonds and church loans. These investments differ significantly from other investments because there is a very limited secondary market for the sale of this class of assets. Accordingly, these bonds and loans pose a liquidity risk, meaning that they cannot be readily sold to cover cash needs. Historically, the Foundation has held higher concentrations of church bonds and church loans and has always had sufficient liquidity to meet withdrawal requests. The Foundation maintains an average cash balance of 15% of the total “at will” managed accounts, meaning the Mid-Term and Long-Term Income Funds which are described in detail above. Earnings on the investments continue to be sufficient to meet scheduled monthly, quarterly and annual distributions to Participants and to allow the Foundation to continue to build future reserves. To manage the liquidity risk, the Foundation’s Trust Administrative Committee meets regularly to review the liquidity needs of each of the pools. In addition, on all accounts that are “at will or quasi at will” (the Mid-Term and Long-Term Income Funds), the Foundation, through signed management agreements with the account holders, has reserved the right to distribute assets in the pools “in-kind,” (direct distribution of the pool assets, i.e. bonds, loans, etc.) rather than require a liquidation of its holdings. Each of these account holders are also required to annually project the investment time-horizon of their specific funds.

How does a church invest with the Foundation?

Each organization wishing to invest in one or more of the Foundation’s Funds described above must sign an Investment Custodial Agreement. Once the signed Agreement and assets are received in the Foundation’s office, investments are made in the desired Fund(s). All investments made pursuant to the Agreement will be held in the name of the specified Fund for the benefit of the Fund participants. The assets in the Fund are not held in the name of the Foundation. Each investing organization is responsible for choosing one or more of the Funds into which it wishes to direct its investment. Purchases and withdrawals may be made in the form of check or wire transfer.

Common Investment Funds

Schedule of Fees

Fees for managed funds apply to those accounts eligible to be held in Common Investment Funds. These fees apply to church, associational, and charitable organizational accounts held for charitable purposes. All managed fund fees are annual rate fees, prorated monthly, and fees include all management, advisory, custodial, transaction and accounting fees. Fees are subject to change. The Fund fee for both Mid Term and Long Term is 1.25%

Common Investment Funds

The fee is calculated on the Participant’s entire asset balance in the Fund and charged at the Fund level.

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The Baptist Foundation Of California https://bfcal.org
Signature Certificate
Document name: Custodial Agreement 
Unique Document ID: 4b50d60350e6e0a0e279464ded37d3c9c53238a6
Timestamp Audit
June 4, 2019 2:07 pm PSTCustodial Agreement  Uploaded by Baptist Foundation of California - [email protected] IP 12.167.48.74
June 7, 2019 4:06 pm PSTTom Jones - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 7, 2019 4:06 pm PSTCarola Manriquez Pozo - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 7, 2019 4:11 pm PSTTom Jones - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 7, 2019 4:11 pm PSTCarola Manriquez Pozo - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 10, 2019 4:00 pm PSTTom Jones - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 10, 2019 4:00 pm PSTCarola Manriquez Pozo - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 11, 2019 8:09 am PSTTom Jones - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 11, 2019 8:09 am PSTCarola Manriquez Pozo - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 11, 2019 8:36 am PSTTom Jones - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 11, 2019 8:36 am PSTCarola Manriquez Pozo - cmanri[email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 11, 2019 12:37 pm PSTTom Jones - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 11, 2019 12:37 pm PSTCarola Manriquez Pozo - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 11, 2019 12:38 pm PSTTom Jones - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 11, 2019 12:38 pm PSTCarola Manriquez Pozo - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 11, 2019 12:41 pm PSTTom Jones - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 11, 2019 12:41 pm PSTCarola Manriquez Pozo - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 13, 2019 4:49 pm PSTTom Jones - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 13, 2019 4:49 pm PSTCarola Manriquez Pozo - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 13, 2019 4:52 pm PSTTom Jones - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 13, 2019 4:52 pm PSTCarola Manriquez Pozo - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 14, 2019 8:06 am PSTTom Jones - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 14, 2019 8:06 am PSTCarola Manriquez Pozo - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 14, 2019 8:13 am PSTTom Jones - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 14, 2019 8:13 am PSTCarola Manriquez Pozo - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 17, 2019 12:26 pm PSTTom Jones - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74
June 17, 2019 12:26 pm PSTCarola Manriquez Pozo - [email protected] added by Baptist Foundation of California - [email protected] as a CC'd Recipient Ip: 12.167.48.74