What is an Endowment?
An endowment is a fund established by a
non-profit organization (often a church) which invests donations to the fund and uses the
income generated from it for specified purposes.
The assets donated to the endowment become the “principal” or “corpus” of the fund,
which is designed to grow and generate income over time to enable sustained
long-term funding for specified purposes without having to rely on the organization’s
operating funds.
How Does Planned Giving Differ from "Everyday" Gifts to Christ Lutheran?
The typical gifts to CLC are in the form of contributions to support
current, on-going operations and ministries on an annual basis. These contributions include
traditional gifts (cash, check, electronic funds withdrawals, credit/debit card payments)
as well as some non-traditional gifts (stock and IRA transfers, Thrivent Points). These types
of gifts are usually unrestricted in nature and are deposited into the Church’s General Fund
or one of its operating accounts upon receipt.
With certain exceptions such as setting
up of reserves for capital improvements or other future needs, funds deposited into the CLC
operating accounts are typically expended in the fiscal year in which they are received.
By contrast, planned gifts are often made on a pledge basis over several years and are
commonly restricted as to their ultimate use and purpose. The bulk of any planned gift
designated for either of the CLC Endowment Funds is intended to remain invested with limited
distributions of income and, in some cases, principal to support CLC’s internal and external
ministries. In this way, most of the principal of a planned gift continues to grow over time,
helping the Church to achieve long-term financial stability and security.
What Form Can Planned Gifts Take?
- Cash or Cash Equivalents (most common)
- Stocks, Bonds, and other securities;
- Real Estate;
- Life Insurance Beneficiary designations;
- Retirement Account and Pension Survivor Beneficiary designations;
- Qualified Charitable Distributions from IRA accounts;
- and Distributions under Wills and Living Trusts.
All non-cash assets offered to CLC as planned gifts are reviewed and subject to acceptance by either the Endowment Team or the Congregation Council.
Upon request, the Pastors or the Endowment Team can refer potential donors to experienced legal and financial advisers who can assist in the creation of appropriate planned giving documents.
What Is a Legacy Gift?
Also known as estate gifts or charitable estate gifts,
legacy gifts are made to one of the CLC Endowment Funds as well as the General Operating
Fund.
Legacy gifts are made by a donor through their will, trust, estate plan, or as a
designated beneficiary on a financial asset. They are realized after the death of the
donor, and may consist of traditional or non-traditional gifts.
If you have questions or need more information about Christ Lutheran's Endowment Funds or Planned Giving, please contact one of our pastors or fill out our Contact Form.
