The purpose of the following is to provide general information in response to potential questions from Faith Presbyterian Church’s members and friends. It is not intended to provide specific advice or recommendations for any individual. We suggest donors consult with their attorney, accountant or tax advisor with regard to their personal situation.
1. What is an endowment fund?
A. An endowment is a permanent investment fund set up by a church or foundation to further the mission of the organization through periodic withdrawals of investment income for defined and approved projects. Endowments are typically funded by donations that may be deductible for income tax purposes by the donors. Since only investment earnings are spent, and not the principal amount, endowment gifts become a means of supporting the organization in perpetuity.
2. What is the Faith Presbyterian Church’s Endowment Fund?
A. The Faith Presbyterian Church’s Endowment Fund is a permanent fund established to offer Faith’s members and friends the opportunity to leave a legacy of faith for future generations. It is intended to enhance the church’s ministry and witness to the love of God in Jesus Christ. Gifts to the Endowment Fund become a part of a perpetual fund with earnings used to expand and enrich the mission and ministry of Faith Church. The Fund is built entirely upon the vision and generosity of Faith members and is totally separate from the church’s annual operating budget and building funds. Available funds are distributed to support projects that are above and beyond normal budgeted items.
3. Does a gift to the Endowment Fund replace my annual stewardship giving?
A. It does not. Your annual pledges and contributions support the ongoing operating expenses of the church and its missions. A gift to the Endowment Fund is invested with the objective of protecting and growing the principal; only the earnings are distributed. In this way, your gift becomes a perpetual gift which goes on giving into the future.
4. Why should I consider giving to the Endowment Fund?
A. A gift to the Endowment Fund is one way you can help ensure the mission of the church will grow and be carried into the future and that those who follow you will be served for generations to come. Your gift creates a lasting legacy of your stewardship and a more stable financial environment for the church. Additionally, there may be meaningful tax and estate planning advantages available to donors to the church endowment. You are encouraged to consult with your attorney and tax professional about these matters.
5. How can I give to the Endowment Fund?
A. All gifts are welcomed; there is no minimum gift. Every gift increases the earning power and cumulative impact of the Fund. Gifts generally fall into three categories: Gifts Now, Gifts that Pay Income, and Gifts Later.
| Gifts Now | Gifts that Pay Income | Gifts Later |
|---|---|---|
| Direct Gifts of Cash, Stocks, Bonds | Charitable Gift Annuity | Bequest (Wills) |
| Qualified Charitable Distribution (QCD) | Charitable Pooled Income Funds | Retirement Plan Assets |
| Real Estate | Charitable Remainder Trust | Bank or Investment Account |
| Life Insurance | Charitable Lead Trust |
6. What is planned giving?
A. Many of the gifts listed above involve planned giving through financial or estate planning. Planned giving establishes a way for a donor to provide for family members while remembering the church as well. In addition to fulfilling their charitable goals and acknowledging (financially and spiritually) their gratefulness to God, donors may receive tax benefits and lifetime incomes through several types of tax-favored plans. Please consult with your attorney or personal financial planner to determine which is best for you.
7. Can gifts to the Endowment Fund be given in honor or memory of someone or to mark a special occasion?
A. Yes. A gift to the Endowment Fund in the name of a family member or friend is a meaningful way to memorialize or honor someone you love. Any occasion (birthday, anniversary, birth of a child, etc.) can be remembered and celebrated by a gift to the Endowment Fund. For direct gifts of cash, checks should be made out to Faith Presbyterian Church with “Endowment Fund” written on the “For” line of the check.
8. Will my gift remain confidential?
A. All gifts or donations to the Endowment Fund are treated with strict confidentiality. No information about your gift will be divulged without your expressed permission. If you are considering a memorial or honorary gift, the family or individual will be notified of the gift if you so desire. A thank you letter will be sent to you from the church expressing gratitude for your generosity and can be used as proof of charitable giving for tax deduction purposes. The Endowment Committee may recognize contributors to the Fund through church publications or at events; however, if you wish to remain anonymous, your wishes will be honored.
9. Who manages the Endowment Fund?
A. The Endowment Fund is managed by the Endowment Committee in accordance with the Faith Endowment Fund policy. A copy of the policy is available in the Church Office. The members of the Endowment Committee are appointed by the Finance Committee and approved by Session. It is comprised of a minimum of five members, consisting of the Treasurer, the Finance Elder, the Pastor, and at least two ad hoc active members of Faith Presbyterian Church.
10. How is the Endowment Fund invested?
A. All gifts to the Endowment Fund will be invested following the guidelines stated in the Endowment Fund Policy. This policy specifies investment goals of moderate risk tolerance, primary income and secondary growth. The Committee will review the performance periodically to determine if any adjustments are warranted.
11. Can I designate how my gift can be used?
A. At this time, no. As specified in the Faith Endowment Policy, the Faith Endowment Fund is an unrestricted endowment account. In the future, however, it is possible additional endowment funds may be created for designated purposes upon the recommendation of the Committee and approval by Session.
12. How will my donation be used?
A. The Endowment Fund was created to ensure sound financial support for the future of Faith Church. Your outright gift or your legacy gift, when realized, will be added to the principal balance of the endowment and become a part of a larger statement of faith and commitment. Each year the Finance Committee will calculate the approved annual distribution which is equal to 3% of the average year-end balance of the Fund over the previous three years. During the Annual Congregational Meeting, the Finance Committee will announce the available distribution. Requests for expenditure will be sent to the Endowment Committee for review. The Endowment Committee will forward the requests to the Finance Committee who will review and make recommendations to Session. Session will decide how the income is disbursed.
13. What if I have already included Faith Presbyterian Church in my estate plans?
A. THANK YOU! If Faith is already in your plans, we’d love to know and would like to thank you. If you are willing to let the church know your plans, please fill out and return the Faith Endowment Fund Information Form available on the Faith website. Your gift will remain completely confidential and, if you prefer, can be anonymous.
14. How can I get more information about Faith’s Endowment Fund?
A. You are encouraged to reach out to Rev. Dr. David Bender or to a member of the Endowment Committee. You may also fill out and return the Faith Endowment Fund Information Form available on the Faith website; a member of the Endowment Committee will contact you. Your tax and/or financial advisor should also be consulted.
