How We Work
Are you familiar with how a bank works? If so, then you know a lot about how The Cornerstone Fund works!
As you know, customers place money in the bank â€” in checking â€” savings accounts, in certificates of deposit, in money market accounts â€” and the bank pays interest on the money in its care. To pay that interest, the bank must earn money â€” and they do that by loaning money out to borrowers who want to finance a car, a home, or perhaps a business.
The Cornerstone Fund works a lot like that â€” a sort of bank within the UCC. We offer certificate of deposit-type investments to individuals, churches and UCC organizations, paying an established rate of interest depending on the term the investor selects. Then, just like a bank, we loan out the funds invested with us to UCC churches who are borrowing to make improvements to their building and grounds.
At a bank, your CDs and accounts are usually guaranteed by the federal government through the FDIC. At the Cornerstone Fund, we cannot offer that kind of guaranteed; but we protect your investment by making sure our borrowers are well qualified, able to repay their loans on time and in full. We further protect our investors by taking the borrowing church’s property as collateral, much like a home is used as collateral for a mortgage â€” and we loan no more than 50% of the value of the borrower’s real estate. Investments in the Cornerstone Fund are considered “securities,” similar to investments in the bond market â€” so investors need to carefully read the prospectus before investing.
Investments in the Cornerstone Fund help build the church by making sure funds are available to established churches to improve and enhance their properties, which in turn helps to strengthen and expand ministry in communities around the US. Call us today to find out how you can earn a competitive rate of return while building the United Church of Christ.