What is the role of Care & Maintenance Funds?

• A. They are optional reserves
• B. They are mandatory for cemeteries to maintain income and protect capital
• C. They fund marketing campaigns
• D. They pay salaries of staff

Answer: (B)

Care & Maintenance Funds are mandatory trust funds established to ensure the ongoing upkeep of the cemetery property and to safeguard the capital set aside for that purpose. This means cemeteries must set aside money specifically to care for graves, grounds, and monuments over the long term, rather than relying on day-to-day operating revenue. The principal is protected so that maintenance can continue in perpetuity, with the fund typically invested and only permitted expenditures drawn from the earnings or as defined by regulation. These funds are not meant for general marketing efforts or day-to-day staff salaries; those costs come from other parts of the cemetery’s operations.