Healthy congregations are receiving a growing portion of operating income from endowment earnings. The United Methodist Foundation of Michigan can help you take advantage of this enormous opportunity.
The primary purpose of an Endowment Fund is to offer a means by which members and friends of a church can make gifts and bequests that provide permanent financial support and living memorials. Gifts to the Endowment Fund should be held in perpetuity, if not otherwise designated by the donor, with income to be used to further Christian ministry and mission. Income from the Endowment Fund should be used to assist the church in fulfilling its purposes in ministry and mission. This includes the support of the ministries of the local church, the United Methodist Church throughout Michigan, nationally or internationally, and any other Christian ministry or mission deemed appropriate by the Endowment Committee.
An Endowment Fund and the resulting income is intended for purposes that are not a part of the local churches' established programs, which are funded, or should be funded, through the annual operating budget of the church and the regular giving of those attending.It is not intended that endowment fund income be used to provide for general operating expenses of the local church. Endowment Fund Income should only be used to support ministries beyond normal local church activities or to provide temporary assistance in starting new ministries.
Endowment Funds may accept both cash and non-cash gifts and bequests. Non-cash gifts my include corporate stock, mutual funds, bonds, bank deposits, real estate, etc. as deemed acceptable by the Endowment Committee.
Accounts may be either Donor Designated Accounts or Undesignated Accounts. Donor Designated Accounts are established when donors place specific designations or restrictions on their gift. Principal and income of these accounts can only used in accordance with the written directives provided by the donor. Undesignated Accounts are not designated for a particular purpose or restricted in any way.
To help you with endowment planning, we have created the following sample documents that can be downloaded. Each document provides information to help you in your planning and execution of an endowment.
Endowment Fund General Policies
Endowment Fund Charter
Endowment Spending Policy
Endowment Statement of Investment Policy, Objectives & Guidelines for Local Church Endowment Funds
Endowment Fund Grant Request Process
Planned Gift Acknowledment/Confirmation Form