Last updated 2024-02-20

Board Policy Book Overview

As provided for in Section II. Purpose of the First Parish in Cambridge bylaws, Governing Board policy is guided by our shared mission statement and the eight Unitarian Universalist principles — these provide the grounding for our staff and congregation in shared ministry as a spiritual community. In keeping with the spirit of our covenantal faith, the Governing Board has adopted its own covenant that guides its work on behalf of the congregation. 

First Parish in Cambridge Mission Statement:

Awakened by worship, nourished by tradition, and united by love, we strive to create a multicultural, spirit-filled community that works for justice, fosters spiritual curiosity and faith formation, shares joy, heals brokenness, and celebrates the sacred in all.

We welcome people of all beliefs, ages, classes, colors, ethnicities, abilities, sexual orientations, and gender identities and expressions.

Governing Board Covenant:

The governing board of First Parish in Cambridge believes that leadership is spiritual work. We are committed to focusing our work on living into the vision and mission of First Parish. We also covenant to:

• Be fully engaged in the life of the congregation,
• Exercise responsibility in using First Parish assets and resources,
• Embrace shared ministry and work collaboratively with staff and other leaders,
• Maintain a democratic process, and make decisions inclusively and transparently,
• Encourage change and innovation in our work and in the life of the congregation,
• Speak frankly in love following the Covenant of Right Relations,
• Prepare, attend and participate in meetings,
• And adhere to board decisions.
• We will bring our best and true selves and be willing to devote our time and talents to our work.

(Adopted by the Standing Committee, under its then current name, on 10/18/ 2016)

Definition of Shared Ministry: 

Shared ministry is the understanding that the minister, staff, lay leaders and other volunteers work together with mutual trust and support toward a common mission, through collaborative goal setting, and with willingness to participate actively in fostering vibrant congregational life. It means that congregants contribute to and support the ministries of the congregation along with the minister and staff.

Link to Unitarian Universalist 8 Principles and 6 Sources: 

Consistent with our bylaws, the board has adopted the following policies. The board records all of its actions in its minutes; for ease of reference, it also records in this policy book any action intended to authorize others to make decisions or to control multiple decisions over time. The board is solely responsible for maintaining these policies.  Changes, including additions, edits, and deletions, require a majority vote.

1. Board Governance

1.1. Role of the Board

The board will govern primarily by discerning mission; planning for the future; partnering with the Lead Minister and staff; and holding leaders of First Parish, including its own members, accountable for their performance.

1.1.1. Annual Board Work Products

In concert with the Lead Minister, staff, and congregation, the board will produce and adopt:

● The annual priorities, prepared in collaboration with the Lead Minister and Director of Administration, consisting of a short list of areas where First Parish will advance its work in the coming year.

● A reflection and assessment on First Parish’s success or difficulties in achieving the prior year’s annual priorities that is used to document the year’s activities and report to the congregation.  

● An annual mutual Performance Evaluation of the Lead Minister’s and the board’s effectiveness in their respective roles.  

1.1.2. Less Frequent Board Work Products

In concert with the Minister, staff, and congregation, Governing Board will produce and adopt:

● Periodic Evaluation of the Lead Minister’s performance in their wider pastoral role. This review may be triennial, or at a periodicity agreed to by the Lead Minister and the board.  

● Strategic Plan(s), each to be updated every five to ten years.  

● A Mission Statement, to be updated as needed, that articulates First Parish’s purpose and related statements (vision, values, and a tagline) to communicate the reasons for its work.

1.1.3 Sponsorship of Aspirants to the Ministry

As First Parish is a teaching congregation, from time to time it will be asked to approve sponsoring an aspirant to the UU ministry.  The board approves these sponsorships.  

First Parish abides by UUA guidance in considering sponsoring a candidate for ministry:

https://www.uua.org/files/documents/mpl/credentialing/cong_sponsorship.pdf

The candidate should be a member in good standing at either First Parish Cambridge or another UU congregation. 

Procedure: 

A candidate will begin by speaking with the Lead Minister who will submit their recommendation to the board. Since the governing board meets once a month, the candidate should submit a resume and cover letter requesting sponsorship (to board@firstparishcambridge.org) at least a week before a board meeting. The letter should summarize their qualifications and any involvement in First Parish or another congregation.

If the sponsorship is approved, the board chair will submit the statement of congregational sponsorship to the UUA.

1.2. Board Officers

In addition to the duties defined by the bylaws, the officers have the following responsibilities:

1.2.1. The Chair prepares the board’s agenda, facilitates or arranges for facilitation of board meetings, and as a member of the Leadership Team, works in partnership with the Vice Chair, the Lead Minister and the Director of Administration to ensure a productive partnership between the board and staff.

1.2.2. The Vice Chair assists and substitutes for the Chair upon request. The Vice Chair also works in partnership with the Chair, Lead Minister and Director of Administration as a member of the Leadership Team.

1.2.3. The Clerk ensures the safety and accuracy of the board’s records, including the minutes and these policies, as well as ensuring that these records are archived at the Harvard Divinity School library.  The Clerk updates the list of membership of board committees annually, ensures that conflict-of-interest forms are filled out annually and confirms that annual reports from board committees are submitted at the end of each church year.  In cooperation with the staff, the Clerk sees that approved minutes and board policies are promptly distributed to the congregation via the current electronic means of dissemination.  The outgoing Clerk will brief the incoming Clerk on details of the role.

1.2.4. The Treasurer supports fulfillment of the board’s financial oversight responsibilities by working with the staff to ensure that all appropriate financial information is made available to board members on a timely basis.  The Treasurer serves on the Finance and Development Committee and acts as a liaison between all of the groups involved in First Parish finances.  The Treasurer is also responsible for directing an annual financial review and therefore plays no direct role in financial management.  The outgoing Treasurer will brief the incoming Treasure on details of the role.

1.3. Board Advisory Committees

The board appoints its committees and expert advisors in order to enhance its own capacity to govern, and not for administration or program management, or to make decisions on its behalf. The advisory committees function as think tanks in their respective areas, providing the board with feedback, advice, and ideas on trends, impacts, innovations and best practice, thus aiding in envisioning how First Parish might better live its mission. In addition to the responsibilities outlined below, all committees may undertake other tasks as delegated by the board.

The board’s advisory committees and advisors are:

 1.3.1. Finance and Development Committee

Assists the board in its oversight of the congregation’s finances and aids the board, congregation, and staff in developing the capacity to raise funds from all sources, internal and external, to meet our needs. The financial oversight functions of the Finance and Development Committee are to review and approve the Annual Budget, review quarterly financial results,  track capital projects to assure adequate funds are available, ensure periodic review of the congregation’s financial reporting, systems and procedures, and alert the board to financial issues that need to be considered and recommend solutions. The fundraising functions of the Committee will include cultivating congregational giving, pursuing outside funding as appropriate, supporting and encouraging rental income, encouraging donations from visitors, conducting capital campaigns, and encouraging bequests and planned giving.  The committee will also consider long-term capital budgeting and the congregation’s overall financial wellbeing. The committee does not participate in day-to-day financial decision-making.  (To access Finance and Development Committee documents, click here.)

1.3.2. Governance Advisory Committee

Helps the board to focus on its chosen role, trains board members, and leads the annual board self-evaluation process as needed.  Annually, ascertains future leadership needs in light of members who are rotating off the board and nominates a slate of candidates. Advises Governing Board on governance changes or updates that may be needed based on evolving congregational needs and practices in the UUA. The Governance Advisory Committee will strive to use the most transparent and accountable nominating process possible.

1.3.3. Investment Committee

The Investment Committee responsibilities are described, along with information on the Endowment, in Appendix A.

1.3.4. Personnel Advisory Committee

The Personnel Advisory Committee assists in development of the FPC Personnel Policy and implementation of processes regarding management of First Parish staff. The Committee may review policies related to job descriptions, performance review, salary administration, benefits, leaves and sabbaticals, and recordkeeping. May provide guidance as needed in implementing Personnel Policy and reports to the board concerning compliance with established policies. As requested by the Governing Board the Committee may provide guidance around policy implementation (such as leaves) and assist with development and negotiation of minister contracts.

1.3.5 Building Advisory Committee

The Building Advisory Committee is responsible for advising the board and staff concerning priorities for investments in the FPC building facilities.  The Committee maintains in-depth information on the condition of the buildings, works with Finance and Development to develop a long-term capital plan, and reports periodically to the congregation on the status of the buildings and priorities for improvements, thereby engaging the congregation in understanding and supporting investment in the facilities. Assesses the need for outside professional consultants (architects, engineers, contractors) for major capital projects and manages the selection of these consultants as well as oversees their performance.  During active projects, also tracks and documents all activities, keeps the board updated and facilitates communication among all parties including the congregation.

1.3.6 Expert Advisors

1.3.6.1. Communications  

Advisor(s) is a communications professional who assists the board in using strategies, learning theory, and technologies to communicate effectively, both internally and externally.  

1.3.6.3. Legal

Advisor(s) is an attorney at law and member of Massachusetts Bar Association who assists the board in understanding legal requirements and ensuring compliance with applicable laws.

 1.4. Expectations of Board Members

1.4.1. Conflicts of Interest

The board expects all of its members, as well as members of the Finance and Development and Investment Committees and any staff members involved in financial decisions, to carry out their duties with undivided loyalty to First Parish and its mission. A conflict of interest exists whenever a board member, or a member of the designated committees, has interests or duties that may hinder or appear to hinder that individual from fulfilling this duty.

1.4.1.1. Definition. Conflicts of interest arise when these individuals:

● Stand to gain or lose financially because of an action of First Parish in which they have a decision-making role.

● Cannot set aside their personal preferences as consumers of First Parish’s services to act in behalf of the whole congregation and its mission.

● Face any other situation that impairs or reasonably appears to impair their independence of judgment.

● Have a close relationship with someone who has a conflict of interest, as defined here. A close relation includes any person, corporation, or other business entity with which the board member has a close personal, family, or business relationship.

1.4.1.2. Conflict-of-Interest Disclosure. The board will annually require all individuals covered under this provision to disclose in writing all existing or foreseeable conflicts of interest. The Clerk will maintain a record that will be made available to any member of the board who asks to see it.

1.4.1.3. Conflict-of-Interest Process. When any individual covered under this provision reports a potential conflict of interest related to a matter before it, the board or designated committee (minus the affected member) will determine how to handle the situation. Possible responses include:

● Disclosure in board minutes of the nature of the conflict.

● Leaving the room during all board discussions and votes related to the conflict of interest.

● Resignation from the board. 

1.4.2. Discipline and Removal of Board Members. In exercising its power under the bylaws to remove an officer or board member, the board will follow the following procedures:

1.4.2.1. Removal for Misconduct. The Clerk will notify the member in writing and offer a hearing before the board. Pending such a hearing, the board may suspend the member’s voting privileges.

1.4.2.2. Removal for Absence from Board Meetings. All board members must notify either the Chair or Clerk of any planned absences from meetings. If multiple meetings are missed with no attempt to communicate the reason, the Chair will discuss the attendance issue with the member.  The Chair may ask for a vote of the full board on the removal of the member. 

 2. Delegation to the Staff 

2.1. Global Delegation to the Leadership Team

The Leadership Team consists of the Lead Minister, the Director of Administration, the Chair of the governing board and the Vice-Chair of the governing board.   The Leadership Team reports directly to the board.  Staff who are doing programmatic work in support of congregational ministry, such as religious education and music, report to the Lead Minister; staff supporting administrative and operational functions report to the Director of Administration.  

2.2. Senior Staff  

The current intent is to have the Lead Minister and Director of Administration work as a team and each reports to the board.   In addition to the Lead Minister and the Director of Administration, others involved in management roles include the Director of Religious Education and the Director of Music. The board expects all Senior Staff, individually and jointly:  

• To lead and unify the paid and volunteer staff in directing their efforts toward the fulfillment of First Parish’s mission and goals.
• To ensure compliance with the bylaws, board policies, written procedures, and applicable laws and regulations.
• To uphold a high standard of ethical and professional conduct.
• To accomplish the goals contained in the annual plan

2.3.  Lead Minister

The board entrusts the Lead Minister with congregational leadership, particularly in the areas of worship, spiritual growth and pastoral care and as the representative of First Parish in the community. The Lead Minister will work in partnership with the congregation, providing lay leaders with vision and direction.

2.4. Director of Administration

The board entrusts the Director of Administration with management of the financial and operational aspects of First Parish and with special responsibility for staff compliance with its policies on Care for Paid Staff (3.2), Care for Members and Guests (3.3), and Care for Material Resources (3.4). The board expects the Director of Administration to exercise independent professional judgment in reporting to the board regarding matters in their purview.

2.5 Staff Accountability: All staff members are accountable to their direct supervisor, the Lead Minister or Director of Administration, who are accountable to the governing board for their performance.  

3. Guidance and Limitations

3.1. Personnel Decisions

The board expects the Lead Minister to take the lead in the selection, hiring, supervision, and discharge of all program staff who support congregational ministry. The board expects the Director of Administration to take the lead in the selection, hiring, supervision, and discharge of all staff who support administrative and organizational  functions. 

3.1.1. Hiring Senior Staff

The Lead Minister must consult with the board and the relevant ministry teams in appointing the Search Committees for the Director of Religious Education and the Director of Music.  

Working with the Search Committee, the Lead Minister selects and presents a final candidate to the board for approval. Senior staff are defined as the Director of Religious Education and Director of Music.  

3.1.2. The Director of Administration

Because of its special reliance on the Director of Administration, the board will play an active role in the selection of candidates for this position by appointing the Search Committee. 

3.1.3. Hiring Ministerial Staff

When hiring a consulting or assistant Minister, the Lead Minister will present a hiring plan to the board for approval. Depending on the responsibilities and circumstances, interviews may be done directly by the Lead Minister or by a Search Committee. The Lead Minister selects and presents a final candidate to the board for approval. 

3.1.4. Ministerial Interns

When a hiring plan has been approved by the board, the Lead Minister selects and appoints Ministerial Interns. 

3.2. Care for Paid Staff

First Parish intends to be a fair, ethical, and attractive employer; to achieve high staff morale and productivity; and to protect members of the staff from all forms of injustice and abuse related to their employment. (Implementation details are in the Personnel Manual.)

3.2.1. Supervision and Evaluation

Each employee will be assigned an immediate supervisor, who will annually provide an up-to-date job description and complete a process of goal-setting and performance review. Individual staff goals and performance reviews are confidential, to be shared only as necessary to support First Parish decision-making, or as required by law. 

3.2.2. Compensation and Benefits

As part of the annual budget process, the Personnel Advisory Committee will periodically (no less frequently than every three years) review compensation and benefits for all paid staff and recommend adjustments. In their report to the board the Personnel Advisory Committee must demonstrate that it has:

● Surveyed compensation and benefits practices from the UUA guidelines or from other sources as approved by the board.

● Sought and considered recommendations from the Lead Minister and the Director of Administration regarding adjustments to staff compensation. These recommendations must be presented to the board along with the report.

● Taken into account the “Care for Paid Staff” goals (3.2 here) in relation to First Parish’s financial capacity and strategic goals.

3.2.3. Personnel Manual

The Director of Administration will maintain an up-to-date Personnel Manual that complies with all applicable legal requirements. The Personnel Advisory Committee will review changes to the manual and present them to the board for approval. The Personnel Manual must provide adequate policies to give practical effect to the following principles: 

3.2.3.1. Nondiscrimination

First Parish does not discriminate because of race, color, age, sex, marital status, sexual orientation, gender identity and expression, disability, national origin or ancestry, economic status, union membership, or political affiliation. Religious opinion and affiliation may be considered only to the extent that they may be bona fide occupational requirements or may prevent an employee from being fully supportive of the First Parish’s mission and values.

3.2.3.2. Harassment

First Parish is committed to maintaining a work environment that is free of harassment. Harassment of any kind, including sexual harassment, is absolutely prohibited, and allegations of harassment must be reported and acted upon promptly.

 3.2.3.3. Grievances

First Parish intends to protect the right of staff to raise concerns about working conditions without fear of retaliation. A staff member who alleges that the law or governing board policies have been violated to their detriment may present their grievance to the Personnel Advisory Committee who must immediately acknowledge the complaint in writing and report it to the Chair of the board, who will appoint an ad hoc committee to investigate and respond.

3.2.3.4. Whistleblower Protection

First Parish prohibits retaliation against employees or other persons who in good faith report:

● A suspected violation of law, such as harassment, fraud, or misappropriation of First Parish assets.

● A suspected danger to public health or safety.

● Suspected violations of these policies.

An employee who retaliates against anyone who has made such a report is subject to discipline up to and including termination of employment.

3.3. Care for Members and Guests

The staff must take all reasonable care to prevent harm to members, guests, program participants, and other people affected by First Parish.

See Safe Congregation Policy:  

See Covenant of Right Relations: : 

3.3.1. Health and Safety

The staff must ensure that all First Parish programs are safe for participants and staff; that facilities are maintained in a safe, sanitary, and secure condition; that required licenses and inspections are kept up to date; and that hazards are corrected promptly.

3.3.1.1. Smoking. First Parish prohibits smoking of any kind on its premises or during off-site programs.

3.3.1.2. Alcohol

First Parish groups may serve beer and wine without a licensed bartender, after contacting the director of Administration and getting approval for such alcohol consumption.  Alcohol consumption at events with children is discouraged.

Consumption of alcohol at all rental events is prohibited unless a licensed bartender is present to serve only beer and wine.  The bartender must have a $1,000,000 liability policy and submit an insurance binder listing First Parish in Cambridge as secondary insured.  

3.3.1.3. Fragrances. In deference to those who are sensitive to chemicals, cologne, after-shave lotion, perfume, perfumed hand lotion, fragranced hair products, or similar products should not be worn in First Parish facilities and events.

3.3.2. Emergency Planning

The staff must create and maintain a written plan for responding to reasonably foreseeable emergencies, including accident, illness, fire, toxic conditions, weather problems, active shooter, threatening communications, power outages, and natural disasters.

3.3.3. Child Protection

Because of First Parish’s special responsibility for children and youth in its care, the staff must write and maintain clear procedures for the selection, training, and supervision of anyone who works with persons under eighteen years of age.  

3.3.4. Disruptive Behavior 

[The board’s policy and process for addressing disruptive behavior is not yet resolved and requires further consideration and clarification. The current version, printed here, needs editing ]

 In order to sustain an atmosphere that is truly open to a wide variety of individuals, First Parish must firmly and promptly address behavior that threatens the physical or emotional safety of any adult or child or chills the free exchange of opinions and beliefs. When such behavior occurs, the Lead Minister or other Senior Staff must take immediate action, if required, and report promptly to the board, recommending any further disciplinary action, which may include termination of First Parish employment or membership.

3.3.5. Harassment

Employees, volunteers, and agents of First Parish are specifically prohibited from acts of harassment, including sexual harassment, against any member or participant in its activities or any employee or applicant for employment.

3.3.6. Firearms

First Parish prohibits anyone other than on-duty law enforcement officials or off-duty law enforcement officials hired by First Parish from carrying a firearm on its property.  

3.3.7. Building Security

The staff must make a concerted effort to ensure that access to First Parish buildings is limited to those who have legitimate business there.  This includes having procedures and providing training for any groups that use the building when staff is not present.

3.3.8.  First Parish intends to make its activities safely accessible to persons with disabilities. Due to the age of the building, not all areas are accessible and activities must be adjusted accordingly.  The staff must ensure that its programs and policies meet all applicable legal requirements. 

3.4. Care for Material Resources

The staff must take all reasonable care to prevent harm to the First Parish’s financial assets, property, credit, and tax exemptions and develop administrative practices and procedures designed to prevent such harm and must report promptly to the board on any significant shortcomings in their implementation.

 3.4.1. Operating and Capital Budgets

Annually, at the appropriate time in the budget cycle, staff must, in conjunction with the Finance and Development Committee, propose operating and capital budgets for approval by the board.

3.4.2. Spending Authority

The staff controls and is responsible for all spending out of First Parish accounts, subject to the following limitations:

3.4.2.1. Donor-restricted funds may not be used in violation of donor restrictions or board-restricted funds in violation of board-imposed restrictions.

3.4.2.2. Board approval is required for borrowing or lending funds.  

3.4.2.3. The board’s approval is required to change compensation for any full-time staff position or to change the basis on which benefits are calculated. 

3.4.2.4. The staff must anticipate and prevent spending in excess of the overall budget, as well as underspending in priority areas. If it foresees any material deviation from budgeted spending, the staff must promptly inform the board and recommend options for adjusting the budget.

 3.4.2.5. The budget will be prepared in outline form, with major budget categories summarizing minor ones. The Leadership Team may approve overspending by up to 15 percent over the budgeted amount in any major budget category, provided overall spending remains within budget and the adjustment is promptly reported to the board.  

3.4.3. Gift Acceptance

The staff controls and is responsible for receiving and acknowledging all gifts to First Parish, with the following limitations:

3.4.3.1. All non-cash gifts, including securities, real estate, and personal property must be promptly converted into cash upon receipt.

3.4.3.2. The staff may not accept gifts restricted in any way by the donor unless the board has in advance created a Special Fund to receive gifts with stated restrictions.

3.4.4. Special Funds  

First Parish receives funds from gifts and bequests that are restricted by the donor to specific purposes. When such gifts are accepted, they must be used only for the purpose indicated by the donor and directed to the area of the budget consistent with the instructions, although the Board may direct use within that budget area. Special Fund accounts are used to ensure management of the restricted funds consistent with the restrictions. Special Fund accounts within the First Parish endowment are:

3.4.4.1. General & Poors – Use in direct support of the ministry of FP

3.4.4.2. First Whitney – Use in direct support of the poor

3.4.4.3. Second Whitney – Use in direct support of the poor

3.4.4.4. Hall – Use for staff professional expenses or for church library books

3.4.4.5. Taft – Use for organ maintenance and repair

3.4.4.6. Dieffenbach – Use for flowers/decorations and for worship

3.4.4.7. Dogherty – Use for flowers

3.4.4.8. Women’s Alliance – Use for flowers/decorations

3.4.4.9. Building Fund – Use for capital projects related to the building

3.4.5. Accounting and Financial Standards

First Parish accounting and financial controls must conform to accepted best practices for religious societies of comparable size, including:

3.4.5.1. Cash Management. The staff must maintain written procedures to govern the handling of receipts, access to cash and bank balances, approval of expenditures, payment of invoices and other obligations, and management of invested funds.  

3.4.5.2. Separation of Functions.   There shall be a separation of accounting and reconciliation functions between individuals to ensure financial safeguards are in-place.  Two unrelated individuals must count the Sunday cash offering.  

Office Administrator Responsibilities

• Process and post all deposits of cash, check, stock or online donations.
• Prepare all checks for payments of invoices or other check requests.
• Post all pledge payments and other special donations.  
• Process payroll on a weekly and monthly basis

Director of Administration and Operations Responsibilities

• Approve all invoices and other check requests for payment
• Sign weekly check run
• Reconcile pledge payments to ledger and database
• Reconcile bank statement
• Prepare and analyze monthly and quarterly financial reports
• Develop Operating and Staff Budget

Sunday Morning Cash Offering

• Must be counted by two non-related individuals and given to the Office Administrator for deposit.

On a regular basis, to be determined by the Finance and Development Team, the Treasurer shall randomly review financial records, including bank statements and invoice payments, for appropriateness.  

 3.4.5.3. Approval Authority. Governing board Officers, the Lead Minister, and the Director of Administration are authorized to approve cash disbursements. At least one authorized individual must approve all cash disbursements. Two unrelated authorized individuals must approve any disbursement of $5,000 or more that is not part of an existing contract or related to normal payroll expenses.

3.4.5.4. Fund Accounting. The staff must take care to distinguish donor-restricted, temporarily restricted, voluntarily restricted, and unrestricted funds.

3.4.5.5. Reconciliation. First Parish accounting reports must be reconciled with financial institution statements as often as those statements are issued, and copies of such reconciliations must be provided to the board’s Finance and Development Committee for review.  

3.4.6. Asset Protection

The Director of Administration must take all reasonable care to ensure that First Parish assets are protected from loss or theft, including: 

3.4.6.1. Adequate insurance to protect against property losses, liability for injuries to others, corporate liability, personal liability of board members and staff, and honesty bonds for all personnel with access to material amounts of funds.

3.4.6.2. Maintenance of First Parish property and equipment to keep it in working order, subject to reasonable wear and tear.

3.4.6.3. Reasonable steps to protect First Parish’s intangible property, including intellectual property, electronic data, and paper files from significant damage or loss.

3.4.7. Document Retention

The staff must maintain written procedures to govern the backup, retention, and destruction of the First Parish’s documents, giving definite retention periods for classes of financial, business, pastoral, personnel, and corporate records in both paper and electronic forms.

4. Oversight

4.1. Mission Focus

The board’s duty of care requires it to ensure that First Parish’s human and material resources are used for the benefit of its mission. The board fulfills this duty in two ways: by monitoring regular reports provided by the staff and by scheduled evaluation of progress toward achieving the goals established in the annual priorities.

4.2. Monitoring

The Lead Minister and Director of Administration will provide regular written reports from the staff to the board. Monitoring reports must be made available to board members in advance of each monthly meeting but will not normally be a subject of discussion except when they require board action or raise issues of compliance with board policy. Reports must include, at minimum:

4.2.1. Monthly financial statements that show overall financial performance compared to budget and highlight significant financial or operational issues. These reports will be made available to any First Parish member who wishes to examine them. 

4.2.2. Quarterly financial statements that show the overall financial position of First Parish. These must include a complete balance sheet and funds statement and detailed statement of operations.

4.2.3. Programmatic Monitoring

On a schedule to be agreed upon annually, the Lead Minister or Director of Administration must provide reports to the board regarding:

• Progress on board priorities (Lead Minister)

• Progress on achieving the annual plan (Lead Minister)

• Compliance with applicable board policies  (Lead Minister and Director of Administration)

• Each report will focus on selected areas of progress and compliance, so that in the course of the year the entire annual plan and all points of policy compliance are covered. 

4.3. Evaluation

Everyone responsible for work in behalf of First Parish will engage in a continual process of evaluation. The purposes to be accomplished through evaluation are to foster excellence in ministry work by ensuring that all First Parish leaders:

• Practice open communication and regular feedback.
• Meet performance standards appropriate to their roles.
• Maintain effective working relationships with their teams and one another.
• Focus on achieving goals as approved by the board and staff.

4.3.1. Board and Lead Minister Evaluation

Annually, as part of the creation of the annual plan, the Lead Minister and the board will together review their respective contributions to the fulfillment of the prior year’s annual plan.

4.3.2.  Director of Administration Evaluation

At a mutually agreed upon time and at least annually, the Director of Administration will meet with the Chair and Vice-Chair of the Board to review the performance of the Director of Administration in accordance with goals determined by this group at the beginning of each fiscal year.  These goals shall be in-line with the Board goals as determined at an annual Board retreat but shall also be specific to the work of the Director of Administration.  The Lead Minister may also be asked to provide feedback and review of the Director of Administration’s performance during the same period.  

4.3.3. Staff Evaluations

 All First Parish employees develop, with their supervisors, timely annual performance goals supportive of the annual priorities. Their performance is evaluated annually in writing.  

4.3.4. Lead Minister’s Triennial Performance Review

Every three years, or on a schedule agreed to by the Lead Minister and the board, the board and Lead Minister will together appoint an ad hoc Review Task Force of three persons held in high esteem by the membership and mutually acceptable to the board and the Lead Minister. Working with the Lead Minister, the Task Force will design and facilitate a review of the Lead Minister’s performance. The goals of the evaluation are to call the membership’s attention to the mutual, relational nature of ministry and the respective responsibilities of all who contribute to its success and to help the Lead Minister to remain motivated, creative, and flexible. The Task Force’s report to the board, together with a written response from the Lead Minister, will be shared with the membership along with the board’s plan for addressing any recommendations it may contain.  

4.3.4. Periodic Financial Audit or Review

At least once every 6 years, the Treasurer, acting for the board, will engage with a professional experienced in conducting audits for non-profit organizations in order to review First Parish’s financial records, accounting practices, policies, and procedures. The results of this review will be reported in writing to the board, along with any concerns and recommendations.

APPENDIX A

First Parish in Cambridge Endowment Fund (“endowment”)

The endowment includes all funds intended to be maintained on a long-term basis to provide a stream of income to First Parish into the future. The board places funds in the endowment either by accepting gifts restricted by the donor to endowment use or by voluntarily placing funds into the endowment. All bequests, memorial gifts, or otherwise unspecified donations to First Parish are automatically placed in the endowment.

A1. Delegation and Guidance to the Investment Committee.

An Investment Committee appointed by the board and acting by majority vote, is empowered to direct the investment of the endowment, subject to the following policies.  (To see Investment Committee documents, click here.)

A1.1. Investment Objectives. The endowment must be invested to produce a maximum rate of total return consistent with the following: prudent management of investments, preservation of principal in real terms, potential for long-term asset growth, and socially responsible investment practices.

A1.2. Permissible Investments. Endowment fund assets may be invested in publicly traded common and preferred stocks, convertible bonds and preferred stocks, bank common funds, mutual funds, and fixed income securities (including government bonds, corporate bonds, certificates of deposit and money market instruments). International investing is permissible. Other investments are permissible only if approved by a vote of the board.

A1.3. Shareholder Initiatives. In keeping with our ethical values, First Parish is an activist shareholder, lending its support to shareholder initiatives and coalitions of shareholders in support of

• Disclosure of lobbying and political spending.
• Action to address climate change.
• Nondiscrimination based on skin color, age, sex, marital status, sexual orientation, gender identity and expression, disability, national origin or ancestry, economic status, union membership, or political affiliation.
• Action to address other critical issues of sustainability and equity.
• Disclosure that supports shareholder assessment of any of the above.

A1.4. Ethical Investment Screen. Except for a de minimis number of shares owned for voting rights for shareholder initiatives, endowment funds may not be invested in:

• Any company that derives more than 10 percent of its revenue, in the aggregate, from the following: (a) the production or sale of weapons or ammunition, (b) the production or distribution of pornography, (c) tobacco, (d) gambling.
• Any company active in fossil fuels as determined by the Carbon Tracker list of the top 200 companies.

A2. Annual Distribution from the Endowment.

A2.1. Annually, during the budgeting process, the Investment Committee, in consultation with the board, shall determine a distribution amount, derived using the following guidelines, for board approval.

A2.2. The annual distribution from the endowment is calculated on a 13-quarter rolling average (TQRA) of the endowment’s total value. The following guidelines are employed to determine the distribution percentage:

The usual distribution shall be 4.5% to 5% of TQRA.

• A distribution up to 6% of TQRA may be made in limited circumstances, only after careful joint consideration by the Investment Committee and the board.
• A distribution below 4.5% of TQRA may be made if the board and Investment Committee jointly deem future income more important than current needs.
• If the Investment Committee believes the annual distribution guidelines are inconsistent with preservation of principal in real terms over the long-term investment horizon, then the committee will ask the board to reconsider annual distribution guidelines. 

A3. Authorization for Endowment Withdraws

If a withdrawal from the Endowment is authorized by the appropriate measures, the actual disbursement must be approved in writing by two of the following three individuals: The Chair of the Governing Board, the Chair of the Finance and Development Committee, the Chair of the Investment Committee. This requirement includes the regular disbursements for the annual budget. Any financial institution holding Endowment funds should be instructed to only allow disbursements authorized in this manner. Any other instructions issued to such a financial institution are also subject to this requirement (e.g. updating bank account info, statement addresses, updating the authorized persons list, etc.). The financial institution should provide confirmation of all received instructions to the following individuals: The Chair of the Governing Board, the Chair of the Finance and Development Committee, the Chair of the Investment Committee, the Treasurer, the Director of Administration, and the Lead Minister.  The following link provides access to the specific procedural requirements: 

https://docs.google.com/document/d/1LtBWjPFtiohXzHNaQuMI-RHsP2x0KIwfuZOsSixMvo4/edit

A4. Endowment Sub-Accounts

Certain programs of First Parish may have portions of the endowment restricted specifically for use only by those programs.  Any disbursements from these sub-accounts do not go into the First Parish operating budget, but rather go directly to those specified programs, and the amount and timing of these disbursements are determined by separate requests to the Investment Committee.  Currently there are two such programs: Paine Senior Services and Tuesday Meals.

A5. Endowment Funds Held for Outside Organizations

First Parish may, at its discretion, hold in its endowment funds belonging to outside organizations.  This may be done for a variety of reasons (such as to allow a smaller organization to invest without incurring separate management fees), but any such funds are tracked separately within the First Parish endowment as a restricted sub-account (as in A 4.).  First Parish must return such funds, in full or in part, at the request of the owning party.  Such requests must be made with at least 90 days’ notice to allow for a responsible removal of assets from the overall endowment.  Currently there is one such outside organization: Cambridge Forum.

APPENDIX B

           Related Organizations

From time to time, First Parish may affiliate with external non-profit organizations to further the congregation’s mission and goals. Such affiliations must be approved by the board. In affiliating and managing these relationships, the board must take care to ensure compliance with First Parish’s nonprofit and tax-exempt status.

In order to demonstrate alignment with the congregation’s mission and goals, a recognized group within FPC will complete a template to characterize the proposed affiliation. This template should be provided to the chair of the board at least one week prior to a board meeting to provide adequate time for a review before a vote.  Because there has been confusion about their status, two fully integrated programs of First Parish are included here (section B1.) to clarify that they are not external affiliates.

  B1. First Parish Programs

B1.1. Paine Senior Services (a ministry to Cambridge elders) is an integral program of First Parish, functioning as an unincorporated organization with its own bylaws.  Paine Senior Services is subject to the direction of the staff regarding program, activities fund-raising, financial practices, and use of facilities.  It reports to the Lead Minister and has an advisory board..

 B1.2 The Tuesday Meals Program (a ministry to the food insecure in our community) is an integral program of First Parish, and is subject to the direction of the staff regarding programs, activities, fund-raising, financial practices, and use of facilities. It reports to the Lead Minister and has an advisory board.

  B2. External Relationships

B2.1. Cambridge Forum is a separately incorporated nonprofit organization with its own board that originated as a First Parish integral program. The relationship between First Parish and Cambridge Forum is regulated by a Memorandum of Understanding and rental agreement. 

First Parish relationship history

B2.2. Greater Boston Interfaith Organization works to coalesce, train, and organize the communities of Greater Boston across religious, racial, ethnic, class, and neighborhood lines for the public good. First Parish has agreed to be a member and pays an annual membership fee.

 B2.3. Louis D. Brown Peace Institute is a Dorchester-based center of healing, teaching, and learning for families and communities impacted by murder, trauma, grief, and loss. First Parish supports its mission, including sponsoring a team to participate in its annual fund raiser, the Mother’s Day March for Peace.

B2.4.  Sanctuary Boston is a covenanting community of the Unitarian Universalist Association. First Parish has an encouraging and supporting relationship. The relationship between First Parish and Sanctuary Boston is regulated by an Agreement between First Parish and First Church in Boston when Sanctuary Boston was founded. 

First Parish relationship history

B2.5.  Unitarian Universalist Association of Congregations. Section III of the First Parish bylaws directs the congregation to “be a member of the Unitarian Universalist Association of Congregations and its regional affiliate and to recognize its responsibilities of fellowship in these entities.” First Parish contributes annually to the UUA’s Annual Program Fund in order to support the Association as well as the New England Region.

 B2.6.  UUMassAction. First Parish is one of approximately 140 UU congregations that support the Unitarian Universalist Mass Action coalition with an annual financial contribution. The mission of UUMassAction is to organize and mobilize UUs in Massachusetts to confront oppression.

 B2.7. Unitarian Universalist Urban Ministry. Headquartered at the First Church in Roxbury campus, the UU Urban Ministry operates programs that provide education and enrichment programming for children and youth, emergency shelter for individuals and families fleeing from domestic violence, and job- and education-readiness training for survivors of domestic violence. First Parish is a Member Congregation of the UU Urban Ministry, providing annual financial support.

B2.8.  Y2Y is a separately incorporated nonprofit organization providing services in First Parish facilities to homeless youth, consonant with the First Parish mission. The relationship between First Parish and Y2Y is regulated by a Lease and Memorandum of Understanding

First Parish relationship history

B2.9. Youth on Fire is a subsidiary of Fenway Health providing services in First Parish facilities to homeless youth, consonant with the First Parish mission. The relationship between First Parish and Youth on Fire is regulated by a Lease and Memorandum of Understanding. [.

First Parish relationship history

B2.10. Slave Legacy History Coalition is a consortium of individuals, organizations, and institutions engaged in the preservation of the history of enslaved people in the Cambridge, Boston communities and beyond. The coalition was established and is led by the Lloyd family to help those who are descendants of slaves and also the general public to connect to the vast repositories of information on slave legacy history.  The Slave Legacy Working Group of First Parish works with the coalition.  

​

B3. Historical Relationship

B3.1.  Harvard Square Library is a separately incorporated nonprofit organization with its own board that originated as a First Parish program, but there is currently no on-going relationship.

First Parish relationship history

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• The initial version of the policy book was approved by the governing board March 21, 2017.
• Section 1.6 was added and the amended version was approved by the board May 16, 2017.
• Language in Section 1.3.6.4, describing the Personnel Advisor, was changed from “human relations professional” to “human resources or management professional,” correcting an error that was meant to be caught before the book was approved. The change was approved by the board’s executive committee July 19, 2017.
• A link was added in section 3.3 to the Safe Congregation Policy in the First Parish website July 20, 2017, as directed by the board.
• August 18, 2017: Carol Lewis’s title was changed from Congregational Administrator to Director of Administration throughout, reflecting a change approved by Rev Clyde Grubbs and communicated by him to Carol in late spring that he did not officially announce to the Standing Committee/board.
• August 18 2017: Added the word “However” to section 3.1.2 to clarify that even though 3.1 says the Lead Minister “takes the lead in all staff selection, hiring, supervision, and discharge decision,” the board will play a role in employment decisions regarding the Director of Administration.
• September 20, 2017: As approved by the board, revised section 3.2.2 to clarify that the Director of Administration, rather than “staff,” will keep the Personnel Manual up to date and that the board will review and approve changes.
• September 20, 2017: As approved by the board, added a link in section 3.3 to the Covenant of Right Relations in the First Parish website.
• September 18, 2018: As recommended by its Finance Committee and approved by the board, provisional, placeholder text in section 4.3.5, Regular Financial Review, was replaced.
• October 16, 2018: As approved by the board, section 1.4.2, Conflicts of Interest, was revised to include the Finance and Investment Committees.  [The Conflict of Interest Disclosure Form was modified to reflect this change and a note in the form states the board’s request that those in key staff positions also sign the Conflict of Interest Disclosure Form.]
• November 20, 2018: As recommended by the Investment Committee and approved by the board, section 1.6.3, Authorization for Endowment Withdraws, was added to clarify the requirements for withdrawal of funds from the endowment.
• February 1, 2019: An occurrence of the outdated title “Congregational Administrator” in 1.6.3 that was missed in the August 2017 sweep was updated to Director of Administration.
• March 4, 2019: As approved by the board on February 19, 2019, a link was added to section 1.6.3 that details the procedure for withdrawal of funds from the endowment.
• December 4, 2019: As approved by the board on September 17, 2019, section 1.2.3 concerning the clerk’s duties was expanded to include responsibilities not previously stated.  As approved by the board on October 15, section 1.3.4 Shared Ministry, Abilities and Access Committee and section 1.3.5 Transformation Committee were deleted.  These committees were never formed. 
• January 29, 2020: As approved by the board on January 21, 2020, section 1.5 was written to enumerate external organizations with which First Parish has or had a relationship. In addition,  Section 1.5.1 describes the fully integrated relationship of two internal programs of First Parish.  
• August 21, 2020: As approved by the board on August 18, 2020, section 1.5.2 was expanded to include sections on the Louis D Brown Peace Institute and the Unitarian Universalist Urban Ministry as additional organizations with which First Parish has a relationship.  In addition, section 3.4.4 was completed, listing the restricted funds in the endowment.
• October 3, 2020: As approved by the board on September 15, section 1.1.3 was added with a link to the procedure for sponsorship of aspirants to the ministry.  In addition, section 3.1.5 was added to address hiring of ministerial interns.
• March 12, 2021: Links to relevant board committees were included in sections 1.3.1, 1.3.2 and 1.6.1.
• June 30, 2021: As approved by the board on May 18, 2021, sections 1.6.4 and 1.6.5 were added for clarification of the types of funds in the Endowment Fund not available for general use by First Parish.