An endowment is the accumulation of assets and resources managed for the long-term to provide ongoing financial support for the congregation. While it is important for congregations to invest current resources in carrying out their mission, it is also fiscally prudent to develop an operating reserve fund for those unexpected expenses or income shortfalls.
How Does It Work?
Your church endowment fund and its operation are managed by the Endowment Committee with oversight by the Vestry, according to the by-laws. The “principal” of the endowment gifts are permanent and only a small fixed percentage may be used at the discretion of the Vestry. The funds are carefully invested and accumulated earnings are used for purposes beyond those of the operating budget.
The Foundation is ready to assist your parish every step of the way with one-on-one consultation, sample policies and easy to follow planning.
Benefits of a Church Endowment
- Confirms the commitment of the parish to carry out it's mission into the community in perpetuity.
- Enables parishes to fund new programs and provide more ministries, utilizing investment income from the endowment.
- Establishes an intention and a structure to receive legacy and planned gifts.
- Provides for long-term needs that are not budgeted annually, such as maintaining buildings and land.
- Empowers ministry by providing the funds to carry out the mission, programs, and ministries of the congregation.
- An endowed parish is likely to be perceived as stable and financially mature, encouraging donors to invest in its future.