Investment Management Agreement Program

For Churches and Nonprofit Organizations

The Investment Management Agreement (IMA) Program at Anabaptist Foundation serves as an investment option for conservative Anabaptist churches and nonprofit organizations. We believe that the principles of sound stewardship and mutual aid within the brotherhood apply to practical investing and borrowing decisions.

In our church circles, many people share responsibility for exercising stewardship over funds; these persons include deacons, trustees, school boards, and boards of directors over nonprofit organizations. This is a serious responsibility, as all funds held by churches, schools, and nonprofit organizations are understood to be God’s funds.

People in position of stewardship should consider these three questions:

How will our funds be invested? Money is a resource. Where we allow our funds to be put to work is an important consideration. Funds placed in the IMA Program are reinvested within conservative Anabaptist circles in the form of loans to churches, nonprofit organizations, homeowners, and businesses. This provides a level of comfort and control not available at any secular financial institution.
How secure is the investment? The return of funds is as important as the return on funds. We believe that a loans program within our own brotherhoods, backed by real estate and real property, is as secure an investment as others available. Our people, due to our general backgrounds in agriculture and construction trades, have traditionally understood how to create and maintain value in real estate and real property. Our loans program includes a thorough application process, review by a loans committee, filing of mortgages and liens, and a written brotherhood accountability agreement required of all borrowers.
What is the rate of return on the investment? Stewardship involves growing an investment rather than allowing it to remain static. The return in the IMA Program is a quarterly-adjusted and compounded rate that is designed to generally track with the rates available in Certificates of Deposit (CDs) at secular institutions. Call us to learn the current rate.

Minimum Investment

A minimum investment of $2,500.00 is required to establish an IMA account. Additional investments of $1,000.00 or greater may be made at any time.

Quarterly Interest Payments

The interest on IMA accounts is compounded and credited quarterly on the last day of the following months: March, June, September, and December.

Adjustable Interest Rate

The interest rate paid on IMA accounts is determined quarterly, based on a formula currently tied to the 6-month Treasury Bill, as published in the Wall Street Journal. Contact our office for the current rates.

Short vs. Long Term IMA Accounts

Short term IMA accounts, which pay a lower interest rate, are available for withdrawal on a “demand plus 45 day” basis. In the event a withdrawal is requested earlier than these terms, we will attempt to honor the request but may assess an early withdrawal penalty of ½ of 1% ($25.00 minimum).

Long term IMA accounts, which pay a higher interest rate, are available for funds which are initially committed for a one year period. After the first year, they are available for withdrawal on a “demand plus 90 day” basis. In the event a withdrawal is requested earlier than these terms, we will attempt to honor the request but may assess an early withdrawal penalty of 1% ($50.00 minimum).

Our standard short and long term rates are for usual and customary services. If special or extraordinary services are required, an additional fee may be charged based on the applicable hourly fee, commensurate with the services provided and the level of expertise required.