1. What in the world is an endowment fund?
Simply put, it’s putting some money away for a rainy day; a fund that’s invested to grow over time and keep our Chapel financially healthy. Generally, only the interest and dividends from the fund will be used keeping the base protected to produce future earnings.
2. What kinds of things will the Endowment Fund be used for?
The unanticipated, or things needed to be done to support the Chapel growth. Also funds may be for designated purposes, with Board of Trustees approval, for longer term needs. Examples might include activities such as unanticipated capital acquisitions like the new chairs in the Chapel, seed funds for new programs, architectural costs for new facilities, etc.
3. OK, can you tell me a little more how this is different than our annual giving?
Our annual giving keeps the Chapel running day to day. Everything from staff salaries to paying the electric bill, from all our outreach efforts to office supplies, you get the picture. The Endowment Fund is much longer term and relies on planned giving. It’s meant to secure the long term financial health of the Chapel by having funds available for unanticipated needs or support of our growth. Also, the Endowment fund will be closely monitored and managed by a special committee to insure that the spirit of the fund remains intact and that funds are invested wisely.
4. You mentioned “planned gifts”. Can you give me some examples?
Sure. A planned gift could take the form of a bequest in a will, a benefactor of an insurance policy or charitable remainder trust, a gift annuity etc. It’s any type of gift that’s planned for as part of a person’s estate. Click here for more information.
5. What about good old cash?
Cash is always welcomed, but a cash gift to the Endowment Fund should only be considered after annual stewardship commitments.
6. What are the tax implications, if any, on all this?
The tax laws are constantly changing but in general there could be potential savings in your estate probate tax as well as some relief in capital gains taxes. You should consult your tax advisor before making a gift.
7. So, what do I, the donor, get out of all this?
Besides the possible tax benefits we just discussed, there’s something nice about knowing that you’re doing something very special for the Chapel that will live on for many years to come. It will be a significant part of helping the Chapel carry on its mission long after we are gone.
8. Does our Chapel really need this kind of funding?
Yes. Planned giving to endowment funds is becoming more and more a major source of financial stability and growth in the life of a Church. In fact, across our country last year people who weren’t living gave more to Churches than us living souls. Also, just look around our community and witness the kind of growth we’re experiencing; our Chapel will need to grow as well. It all comes down to what we believe in.
9. OK, you got me thinking, so do I need a whole new will?
No. You can set up a bequest by specific amount or a designated percentage, or you might want to have the Chapel receive a residue. All of this can be done by a simple codicil, a short statement at the end of your present will. Just ask your lawyer.
10. Can you explain a little about the “matching fund”?
Sure. A special matching fund has been established by a few anonymous donors totaling more than $150,000. It will be used to match, dollar for dollar, any donation to the Endowment Fund up to $5,000. In other words, a $4000 gift will double into an $8,000 contribution to our Chapel’s Endowment Fund. Of course, this is only for a limited time until the matching funds are depleted.
11. Again, now what do I get out of this?
Most importantly, you get the satisfaction of knowing that you’re making a significant long-term commitment to something you believe in.
12. And what does the Chapel get out of this?
The Chapel eventually receives an important source of funds which can be used to further its mission and protect itself against future unanticipated needs.
13. How can I get more information?
Simply give the Chapel office a call, or pick up an Endowment Fund brochure. Also, you can speak directly to any of the members of the Endowment Fund Committee.
|
