Setting Up a Local Church Endowment Fund
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1 Setting Up a Local Church Endowment Fund Led by the California-Nevada United Methodist Foundation According to the grace of God given to me, like a skilled master builder, I laid a foundation, and someone else is building on it. Each builder must choose with care how to build on it. For no one can lay any foundation other than the one that has been laid; that foundation is Jesus Christ. 1 Corinthians 3:10-11 California-Nevada United Methodist Foundation 1276 Halyard Drive, West Sacramento, CA Phone: (888) Fax: (916) califnvumf@aol.com Empowering Congregations, Growing Joyful Givers
2 Local Church Endowment Fund Handbook Table of Contents Introduction An Endowment Program for Your Local Church 1 Types of Gifts and Use of Endowment Fund Earnings 2 Local Church Endowment Development Process 4 Local Church Endowment Development Process Timeline 5 Why Have a Local Church Endowment? Why Endowments? 7 Local Church Endowments: For All Sizes of Churches 19 Benefits of an Endowment: Broadway UMC 20 Benefits of an Endowment: UMC of Woodland 21 Benefits of an Endowment: Los Altos UMC 22 Endowment Committee Authorization, Structure and Functions Flow Chart of Endowment Committee/Church Structure Book of Discipline Paragraph & How an Endowment Committee Works 27 Charge Conference Resolution Draft 31 The Endowment Fund. Checklist for an Endowment Fund Policy 33 Endowment Fund Policy Template 38 Total Return Spending Policy and Sample Draft 44 The Uniform Management of Institutional Funds Act (for California) 47 Resources. Sample Mission and Purpose for an Endowment Fund 51 Endowment Development Program Survey 52 Inventory of Named Funds in the Endowment Fund 54 Sample Endowment Promotion: Orange Park UMC 55 Sample Endowment Fund Committee Requests for Proposals 58 Endowment Gifts Brochure 59 Planned Giving Brochure Order Form 61 Top Ten Reasons to Contact the Foundation 62
3 An Endowment Program for Your Local Church The Permanent Endowment Fund of your local United Methodist church is established for the purpose of providing members and friends the opportunity to make charitable gifts to your local church that will become a permanent endowment of financial support and living memorial. The principal of all gifts to the Permanent Endowment Fund shall be restricted and the income only shall be used for the purposes specified by the donors, unless the terms of the gift contain a specific written authorization to expend principal. The California-Nevada United Methodist Foundation can assist you with the development of such a program in your local church. We provide this service free of charge to you. Our primary role is as consultant to your committee as they develop the charter to create an endowment fund and a resolution to create an endowment committee within your church. If no committee is to be named, the Trustees must administer the program. Many churches find a separate committee works best and that this committee contains representatives from Trustees, Finance, Pastor, Treasurer, and at-large members. Using sample resolutions to aid the committee, the Foundation guides you through the process for approval by your Charge Conference. Once the Fund and the committee are approved, the actual education and promotion phases of the committee begin work. We work with your committee developing a brochure just for your church. Having the Foundation as a consultant enables you to learn from the efforts of many others. Developing this program takes a significant amount of planning time. The reward comes down the road when your members and friends feel a sense of confidence in your local church s ability to be responsible stewards of their gifts. The work put into the development of the Endowment Fund is the foundation for helping to secure a financial structure for the future ministry of the church. It is not to replace the regular budgeted items but to bring about funds that allow for over, above and beyond the regular needs. Again the committee recommends areas that gifts can be directed such as education, music, outreach, building maintenance, youth and scholarships.
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