Endowments - Workshop | Iowa United Methodist Foundation
The Foundation works with churches to set up and facilitate planned giving and permanent endowment programs. An endowment is a gift that can be invested to support church ministry programs such as missions, scholarships, and building maintenance. We provide, at no cost, on-site and printed resources that can help by:
- Guiding churches through the process of establishing an endowment
- Training endowment board members on ways of giving through estates and planned gifts
- Establishing planned giving program to attract gifts for churches
- Conducting wills and estate planning seminars
Five Ways Endowment Programs Help Churches Grow
- The church receives increased gifts to fund its various ministries
- Members begin including planned gifts as well as current gifts in their stewardship response
- Members are educated as to many expanded gift opportunities for mission and ministry through their church
- Current contributions given in support of the on-going annual budget are freed up to strengthen and even expand existing programs
- The church and its various ministries and institutions begin to receive major planned gifts that have previously been directed to other causes where endowments are already in place
Why an Endowment?
Church endowments provide the income to maintain church buildings, generate funds for mission work, or enhance other ministries. A properly structured endowment program can help you secure the financial future of your church. Endowments have provided a major source of funding for many institutions in our society for years.
The difference between endowment funds and other types of funds, such as operating or capital funds, is that assets are invested in perpetuity. The whole point of an endowment is to provide a steady, predictable source of income over time. Endowment funds can be fundamental to the financial stability of an organization and the income can provide a cushion against unforeseen expenses or economic downturns. An endowment fund can be established for anything which serves the mission and ministry needs of a church.
How it Affects Giving
When members are given opportunities to give from accumulated assets as well as from current income, it can lead to increased generosity. It can even add a completely separate income stream. An endowment’s existence will encourage deferred gifts to the church that might otherwise have gone to an alternate charity. Endowments also provide opportunities for donors to give gifts in honor and in memory of family and friends.
Creating Your Own Endowment Fund
Attached below are tools for your church to utilize to create and market your own permanent endowment fund. The endowment brochure and guide are shortened tools that can be easily printed and distributed where as the planned giving kit is more extensive and detailed. Read the entire planned giving kit or find which section best suits where you are at in the process of planning your endowment fund: