Stewardship in Investing: How Time‑Horizons Make Decisions Easier

I was grateful to join a wonderful meeting of clergy this past week, which inspired me to create this resource for all parishes. I presented an hour session to priests and deacons across our diocese at their fall Clergy Enrichment Day, where we talked about long‑term stewardship and how parishes can make clearer, more confident financial decisions.

Parish investing does not need to feel complicated. It does not require predicting markets or reacting to every headline - Thank goodness for that! Good stewardship begins with clarity, and the clearest place to start is with one simple question: When will we need this money? Thinking of finances in terms of time horizons can give priests, administrators and finance councils a simple, structured way to make investment decisions that support both mission and long‑term stability. Once the time horizon is clear, the investment strategy naturally follows.

Why Time Horizons Matter More Than Market Headlines

Every parish holds several (sometimes dozens of) types of funds, each with a different purpose. Some dollars need to be available next week. Others are meant to grow for years. When we match each fund to its time horizon, we automatically match it to the right level of risk and the right investment tool.

Unlike the man who buried his talent (Matthew 25:14–30) investing through the lens of time horizons is a steady, thoughtful, and mission‑focused. It gives parish leaders confidence because the strategy is based on purpose, not fear.

The Four Time Horizons Every Parish Has

1. General Operating (Cash in, Cash out)

Time Horizon: Immediate Risk Level: None Best Fit: Your local bank

These are the dollars needed for payroll, utilities, sacramental supplies, and weekly ministry. They must remain liquid. Checking and savings accounts at your local bank are the right tool. No investment product is appropriate here.

2. Operating Reserves and Imminent Capital Expenditures (Less than 1 year)

Time Horizon: 3–12 months Risk Level: Little to none Best Fit: Your local bank, or the Foundation’s Fixed Income Pool

These funds support short‑term stability and near‑term projects. The number of months of reserves to keep liquid depends upon your offertory stability and seasonality of expenses and income. Speak with the diocesan CFO, Nick Mielke for advice on this. Many parishes hold these dollars in CDs, money markets or savings accounts. That is a good option. However, some parishes prefer the Foundation’s Fixed Income Pool because it offers convenience, professional management, and avoids the hassle of laddering CDs. It preserves capital, maintains liquidity, and protects against inflation.

3. Capital Reserves (1–5 years)

Time Horizon: Medium Risk Level: Low to medium Best Fit: Catholic Foundation Short‑Term Pool

These dollars are set aside for projects such as roof repairs, technology upgrades, or facility improvements. They should earn more than a checking, money market or even a CD. But they must remain stable enough to be available when needed. The Foundation’s Short‑Term Pool is designed for exactly this purpose. It balances preservation and growth while staying fully aligned with Catholic values.

4. Long‑Term Savings and Endowments (3–5 years and beyond)

Time Horizon: Long Risk Level: Higher, with long‑term reward Best Fit: Catholic Foundation Long‑Term Pool

These funds are meant to grow. They support endowments, cemetery care, scholarships, and long‑term parish stability. The Foundation’s Long‑Term Pool emphasizes growth, real value, and sustainable distributions. It is fully invested so there will be months you'll see a negative number, but history has proven over and over again that the stock market always wins in the long run. The Foundation’s Long‑Term Pool is professionally managed and screened according to USCCB guidelines.

How This Model Makes Decisions Easier

This model makes investing easier for two reasons. First, when parish leaders use time horizons as their guide, investing becomes simpler and more peaceful. There is no need to react to market swings, guess which product is best, constantly revisit decisions, or worry about timing. Time horizons create a clear map. The Foundation’s pools simply follow that map.

Second, the Diocese of Winona‑Rochester has a helpful policy for parishes that wish to evaluate or change an investment partner. The diocesan Chief Financial Officer, Nick Mielke, is available to review the quality of an investment product and offer guidance on Catholic‑values‑based investing. At our Clergy Enrichment Day seminar, the Vicar General, the Very Reverend Will Thompson, affirmed that it is ultimately the responsibility of the pastor and finance council to ensure that all investment strategies align with Catholic teaching. When you choose the Catholic Foundation, you can trust that Catholic‑value screening is our first priority and is built directly into every pool we offer. Our parish partners stay fully aligned with Catholic values without needing to manage screens or research funds themselves.

A Simple Example: Matching Parish Funds to Time Horizons

Here is how a parish might apply this model:

• $40,000 for next month’s operating needs → Local bank checking

• $120,000 for the next four month's operating expenses → Local bank savings or money market

• $60,000 for a project happening this winter → Local bank money market, CD or the Foundation's Fixed Income Pool

• $150,000 for a roof replacement in three years → Short‑Term Pool

• $300,000 in an endowment → Long‑Term Pool

See how clear the decision is because the time horizons are clear?

Conclusion: Stewardship That Supports Mission for Generations

Time‑horizon investing is a simple, faithful, and strategic way to steward for parish resources. It helps leaders make confident decisions, avoid unnecessary stress, and focus on mission. When parishes invest through the Catholic Foundation, they receive professional management, Catholic‑aligned screening, transparent reporting, and a partner committed to strengthening the Church in Southern Minnesota.

If your parish would like help reviewing its accounts or mapping funds to time horizons, we are always glad to assist. Contact us today.

 

Why this topic? The long-term financial stability of our Catholic organizations was surfaced by interviewees in our 2025 diocesan listening exercise across Southern Minnesota. The Catholic Foundation Board has selected this as our top strategic priority through 2030. Visit our FY27-FY30 strategic plan page to learn more.